Trading With The Heikin-Ashi Candlestick Oscillator by Sylvain Vervoort
This visual tool complements candlesticks that will help you
enter and exit trades, resulting in higher profits per trade.
Analyzing a candlestick chart gives a good idea
of what is going on in the market. Candlestick
patterns, resistance or support from price
pivots, rising or falling windows, and the use
of trendlines are all excellent technical trading
tools. But initiating a trade and deciding when to close it,
candle after candle, remains a difficult task. It would be nice to have a complementary visual aid when looking at a candle
Figure 1, a daily chart for Ford Motor Co., uses an expert
function for color-coding the candlesticks. On November 21,
2006, the price falls through the uptrend line after a number of green candles. This means itís time to close any long position and open a new short position. As long as there are red candles, we will keep the short trade open. On December
20, 2006, there is a new green candle. Drawing a downtrend
line up to this point, we see that it is broken to the upside. Itís time to close the short position and open a new long position.