The trading method should be as simple as possible. No indicators, no fancy tools, just focus on price action and what's going on in the market.

Price action is shown through regular Japanese candlesticks, but such price action representations are quite confusing and contain a lot of noise. It is recommended to use an excellent chart format also invented by the Japanese - the Heiken Ashi chart.

For example:


Same chart above but represented as Heiken Ashi:


You find price action a lot smoother and easier to understand, right? When the candlesticks are all green, we know the price is in an uptrend; opposite to the red candle. When the red and green candles alternate, we know the market is trading sideways in the range or consolidating.

On a candlestick chart, when a bullish bar turns to a bearish candle - that is not a remarkable signal; but on the Heiken Ashi chart, when a bar changes color, we have a change in momentum (up to down/down to bullish). But please note that Heiken Ashi candles are only accurate at the top and bottom, and the opening and closing levels you have to see the candlestick chart to correct.

Our strategy is to follow the mainstream, BUY at the end of the downtrend in the uptrend; or SELL at the end of the bullish pullback wave in a downtrend (roughly, pull back trading). The Heiken Ashi candle does a great job of showing the change of bullish/bearish momentum. Combined with a trendline, we can determine exactly when the pullback wave ends.

Command steps:

Step 1: Identify the main trend on D1


The main trend is bearish above D1

Step 2: Move down to the H1 frame, identify the support area


Step 3: Move down to the M2 frame, which will be our main trading frame (if you feel that M2 is too fast, you can switch to M5 or M15). Here we use the trend line and Heiken Ashi candlestick to enter the order


Draw an uptrend line connecting the bottom of the bullish candles, when a bearish candle breaks the trend line —> SELL, stop loss above the top. Take profit at support on H1

Here we have 3 SELL orders with profits of 95, 53, 34 pips respectively.

For example:

Step 1: Main trend is up, BUY only


Step 2: move to H1, identify key resistance


Step 3: switch to M2, remember only BUY, not SELL

Trades marked with x are stop loss, arrow mark are take profit.