The Heiken-Ashi chart looks like a normal Japanese candlestick chart, but the calculation method for making a candle is completely different.

If you use the MT4 platform to trade, you can look through the available indicators in the platform. How to install Heiken-Ashi candles for trading:

It should look like this:

Then start the main talk.

In a normal candle, there are 4 types of price: open, close, high, and low. So in Heiken-Ashi is similar, but the formula is different:

Closing price: A calculation of the average price of the opening, closing, high and low prices.

Opening price: A calculation of the average price of the previous candle's opening and closing price.

High price: the high price of a Heiken-Ashi candle is chosen from one of the high, open, and close prices with the highest value.

Low price: the low price of a Heiken-Ashi candle is chosen from one of the high, open, and close prices with the lowest value.

Heiken-Ashi candles are related because the closing and opening prices of each candle are calculated using the parameters of the previous candle.

The Heiken-Ashi chart is slower than the regular candlestick chart and its signal is delayed. This is an advantage in many cases when dealing with price action.


A lot of traders, especially Japanese traders almost exclusively use Heiken-Ashi for trading. They do not use ordinary candles, although it is also Japanese.

But for the spirit of learning and like to use foreign goods like us, people can use both of these charts to trade, for peace of mind, especially for those who are used to seeing Japanese candles.
The system we discuss today is a combination of three instruments: Japanese Candlestick Chart, Heiken-Ashi Candlestick Chart, and Stochastic Line (14,7,3).

The method will look like this:
  • But when both Stochastic lines (1 fast line and 1 slow line) go above the 20 levels and both candlesticks show a reversal signal (reversal signal from Pinbar candlestick, Engulfing, ...)
  • Sell when both the stochastics falls below 80 and both candlestick chart signals a reversal.
Note: we can add Bollinger Bands as a reversal signal for both charts: when the candlestick moves out of two bounds and goes out of two, it is a good reversal signal.

Illustrated as shown below:

More examples:

Here is an example of a good SELL command:

Examples of good BUY orders:

  • Absolutely disciplined and patiently wait until all 3 signals appear at the same time to enter the order. Do not indulge in yourself and then destroy the effectiveness of the transaction method.
  • Combined with risk management and capital management methods. Accepting losses is an essential part of life, anyone who wants to trade a hundred and a hundred wins should go find a master to study tens of millions of courses.
  • Should trade the demo first because this method is quite strange for everyone.