Heiken Trader is an advanced trend-following trading strategy that closely follows the past price action data and determines market trends as correctly as possible for identifying trade opportunities. This trading system is equipped with a double trend-filter in order to maintain a higher level of signal accuracy in live trading.
Heiken Trader is a versatile trading strategy and it can be applied to trade all kinds of forex currency pairs in the market. In addition, it can also be applied to trade on all sorts of timeframe charts within the MT4 trading platform.
Heiken Trader Overview
Download trader and install it in your MT4 system. After you’re done, your chart will transform like the following image:
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Heiken Trader Explanation
- Heiken Ashi Smoothed: It is an upgraded version of popular trend indicator Heiken Ashi. It applies its MA’s in a smoothed formula for minimizing the lagging issues. Price closes above its level mean the market is in a bullish trend. For a bearish trend, the price must be closed below its level. The indicator also changes its color while there is a change in the market trend for better understanding.
- FXTrend V2 & Trend Lord: Both of these indicators have been included as a trend filter to the system. If the bullish trend is valid, the indicator bars will turn into blue color. Oppositely, all the bars turn red for signaling the validity of the bearish trend of the market. Before you make a market entry, make sure all the bars are signaling for the same trend at the same time.
- Trend Arrows: This indicator provides assistance to understand the final trade signal generated by the main indicators of this trading strategy. It plots arrow signals as a confirmation of the trade signals at the main chart window. For long entry, wait until a series of green arrows below the price candle and for a short entry, the arrows must be plotted above the price candle being turned into a red color.
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Heiken Trader: Buy Conditions
- Price candles close above the Heiken Ashi Smoothed
- Trend Arrows plots green arrow below the price candle
- Both FXTrend V2 and Trend Lord turn blue
- A long entry can be triggered when the above conditions are met
- Set stop loss below the current Trend Arrow level
- Exit long/take profit whenever the Heiken Ashi bars turn in to a red color
Heiken Trader: Sell Conditions
- Price candles close below the Heiken Ashi Smoothed
- Trend Arrows plots red arrow below the price candle
- Both FXTrend V2 and Trend Lord turn red
- A short entry can be triggered when the above conditions are met
- Set stop loss above the current Trend Arrow level
- Exit short/take profit whenever the Heiken Ashi bars turn in to a green color