Help with heikin-ashi candlestick chart.

[Rossini]

Hi,

I have just added this to my system to see what the results might be like. I understand how they are calculated etc, but I don't understand how to put them into practice.

E.g. one of my setups is to identify a potential reversal, get in and put a stop just under the low (the usual thing). But unless I am mistaken the low of the heikin-ashi candle(s) will not necessarily correspond with the lowest that the price reached? I can find that out by putting my curser over the price and a box pops up, but there could be 7 or more candles making the low and it would be a pain to have to do this for every one!

Comments and suggestions appreciated...

Thanks

 

[BSD]

Hi there, I use them myself because they simply smooth trends somewhat and to me at least appear more visually appealing as they show the big picture that I'm mainly interested in.

As for exact highs / lows, on say Oanda or ABN you could go to min / max charts that show the exact maximum price excursion for stop placement, or do it like I do, make it less of an exact science, and place the stops several pips away from what looks like a high / low on heikin charts so that you're beyond the actual high / low, and have a safety distance beyond that.

If you don't want to roughly eyeball I'm afraid there isn't much you can do other than switch to min / max charts or do what you do, hover over the candles.