---
title: 'Best Heiken Ashi Strategy for Day Trading Forex (Heikin Ashi Tutorial)'
source: 'https://youtube.com/watch?v=-M53--_r9ME'
video_id: '-M53--_r9ME'
date: 2026-08-05
duration_sec: 434
---

# Best Heiken Ashi Strategy for Day Trading Forex (Heikin Ashi Tutorial)

> Source: [Best Heiken Ashi Strategy for Day Trading Forex (Heikin Ashi Tutorial)](https://youtube.com/watch?v=-M53--_r9ME)

## Summary

This video presents two practical trading strategies using the Heiken Ashi indicator, focusing on trend identification and reversal detection. The presenter emphasizes actionable techniques over theoretical background, aiming to help traders filter market noise and improve entry timing.

### Key Points

- **Heiken Ashi Basics** [00:02] — The video skips the founder and formulas, focusing on strategies. Heiken Ashi candles do not show real prices; they smooth price action to reduce noise.
- **Real Price vs. Heiken Ashi** [00:29] — Heiken Ashi candles display a smoothed version, not the actual price. For backtesting, use the 'Heiken Ashi' indicator on a chart with real candles to see both.
- **Trend Identification** [01:13] — Real trends are often messy with mixed candle colors. Heiken Ashi makes trends clearer by showing same-colored candles, helping traders identify direction in real time.
- **Strong Trend Criteria** [02:04] — A strong bullish trend: green candles with large bodies and no lower shadows. A strong bearish trend: red candles with large bodies and no upper shadows.
- **Reversal Detection with Doji** [02:29] — Doji candles (small body, two shadows) signal potential reversals. Steps: find existing trend, find a doji, wait for two opposite-colored candles with one shadow each, then enter.
- **Reversal Example** [03:42] — In a downtrend, a doji appears, followed by two large green candles with one shadow, signaling a buy. In an uptrend, the opposite signals a sell.
- **Combining with Stochastics** [04:10] — Stochastics identifies overbought/oversold conditions. However, using it alone leads to false signals. Combine with Heiken Ashi for confirmation.
- **Optimal Entry with Stochastics** [05:19] — Look for overbought/oversold points where Heiken Ashi hasn't shown strong momentum yet. Avoid entries after price has already moved significantly.
- **Buy Example** [06:03] — When stochastics is oversold but price hasn't dropped much, it's a good buying opportunity. The volume to the downside is low, increasing reversal probability.

### Conclusion

The Heiken Ashi indicator, when combined with proper trend and reversal analysis, can significantly improve trading decisions. Adding stochastics as a confirmation filter helps avoid false signals and enhances entry timing.

## Transcript

strategy that you can use with the haiken ashi indicator so explaining the unimportant stuff like the founder or the formulas of the indicator because that's not going to make you money
instead we are going straight to the point and the strategies so first of all let me clear things up for the beginners out there that is still new to this indicator the hike in ashi candles does not show
the real price like you see in this example here i'm using the hiking ashi candle and it displayed a wide green candle candlestick it just displays a small candle so
when you're back testing the haiken ashi strategy you cannot set your candles to hike in ashi because it's not the real price instead called haikenashi which is going to show you the original
price and the haiken ashi candles now that's out of the way let's continue with the strategy so when trading finding a trend isn't as simple as you think a trend doesn't normally look like this
[Music] most trends actually look like this well in hindsight this may look easy but if you're trading real time these
different colored candles will confuse you and might give you false signals so instead of looking at these annoying candles that might display false signals using the haikenashi you would instead
see all the candles with the same color so it's easier to identify the trend real time that's what the haiken ashi is it can help eliminate noises and shows a more clear view
of the market's direction so here's a quick way on how to identify the current trend using the haikanashi chart you can identify a strong bullish trend if the candle is colored green
it has a large body and it has no lower shadows trend if the candle is colored red it has a
large body and it has no upper shadows so we all know that a trend will not last forever eventually it'll start to weaken and reverse
designed to detect price reversals so in a high kenashi you will also encounter doji candles like this
so a doji candle is when a candle has a very small body and two shadows here's how you find reversals chart the first step is to find an existing
the next step is to find a doji candle within that trend the doji can be in any color as long as it's a doji candles that is in the opposite color of the
trend to appear like in this example in this chart we have an existing uptrend and a doji candle so what we want to do color of the trend in this case a red candle to appear
two times and both of the candles need to have only one shadow case we take a sell position
you can see the price is on a clear downtrend and the doji candle appears next you can see two huge candles with one shadow that is in the opposite color of the trend in this case
signal to take a buy position [Music] so that's how you use the high kanashii candles to detect reversals the next strategy that i like to utilize
when trading the haiken ashi is by combining it with the stochastics so i'm not going to go in depth with the simple and i don't want this video to be too long
so basically it's exactly like the rsi if the lines crosses below the lower bands meaning the market is oversold and more likely to reverse upwards and if it crosses above the upper bands
meaning the market is considered overbought and is more likely to reverse downwards but when trading the stochastics indicator you cannot take positions solely based on if the price is overbought
and oversold alone because if you're using the strategy this way it can lead to many false signals like in this example if you follow every signal that the stochastics display
you will face unnecessary losses instead we need to add a second confirmation indicator like the haiken ashi to further confirm our analysis so here's how you trade the haiken-ashi plus stochastics indicator combination
so you want to find overbought and oversold points where the heiken ashi hasn't yet displayed a strong momentum let me give you an example here you can see the stochastics went to oversold
but the price has already dropped significantly so we do not want these types of entries because the price has already established a strong downwards momentum instead we want something like this
levels but the price hasn't yet established a strong downwards movement therefore it is more likely to reverse to the upside so let's look at another example here
from overbought to oversold levels but in the process downwards the downside so this is also a good opportunity to
so this is also a good opportunity to take a buy position you can see the stochastics is at the oversold levels
yet the price hasn't yet established a strong downwards momentum so the volume to the downside is very little therefore this will be a good buying opportunity
[Music] so i just revealed to you the best haiken ashi indicator and all i ask for in return is a very small favor of
liking the video and subscribe to the channel it literally takes only two clicks and it means a lot to me and in return you'll get notified when i post more high quality trading videos like this
so thank you guys for watching and i'll see you in the next video