---
title: 'I Found an UPGRADED Version of The Heiken Ashi'
source: 'https://youtube.com/watch?v=as2HK0ACjI8'
video_id: 'as2HK0ACjI8'
date: 2026-08-19
duration_sec: 388
channel: 'TradingLab'
---

# I Found an UPGRADED Version of The Heiken Ashi

> Source: [I Found an UPGRADED Version of The Heiken Ashi](https://youtube.com/watch?v=as2HK0ACjI8)

## Summary

The video introduces an upgraded version of the Heiken Ashi indicator, called the 'Smoothed Heiken Ashi' by TradingView creator jackvmk, which overlays the smoothed candles on top of normal candlesticks to combine the benefits of both. The presenter explains how to configure the indicator, read its signals, and apply a specific trading strategy that includes risk management and partial profit-taking.

### Key Points

- **Introduction of the upgraded indicator** [00:00] — The presenter claims to have found an indicator that is 'infinitely better' and '2x more profitable' than the standard Heiken Ashi, which is used by traders to determine general direction.
- **Problem with normal candlesticks** [00:47] — Normal candlesticks show a lot of red and green noise, making it hard to tell the price direction and potentially leading to false signals.
- **Limitations of standard Heiken Ashi** [01:03] — Standard Heiken Ashi eliminates noise but loses 'juicy information' like chart patterns and key support/resistance levels because it only shows a smoothed version of price.
- **Advantage of the new indicator** [01:32] — The new indicator adds a Heiken Ashi overlay on top of normal candles, allowing traders to see both price action and the smoothed trend simultaneously, providing the best of both worlds.
- **Fewer false signals** [02:02] — The improved version provides fewer false signals compared to the standard Heiken Ashi; in an example, the standard version placed red candles in an uptrend, while the improved version only showed green candles, avoiding fakeouts.
- **How to add the indicator** [02:16] — On TradingView, go to the indicators tab, type 'smoothed heiken ashi', and select the one by jackvmk.
- **Optimal settings** [02:33] — For short-term analysis, set two settings to 5 and 5; for long-term trends, use 20 and 20; the default 10 and 10 is a balanced option.
- **Reading the indicator** [03:00] — Green candles signal an uptrend, red candles signal a downtrend. The size of the candles indicates momentum: growing candles mean gaining momentum, shrinking candles mean losing momentum.
- **Momentum shift example** [03:33] — In a downtrend, red candles getting smaller indicate losing downward momentum; a subsequent green candle signals a likely market shift.
- **Strategy: Don't trade on color alone** [04:40] — Entering a long just because the indicator turns green or short on red will not work long-term; a more nuanced approach is needed.
- **Strategy: Identify strong trend and reversal** [04:52] — First, find a strong downtrend with red candles getting larger. Then, look for a trend change: red candles start shrinking and then shift to green.
- **Strategy: Use Heiken Ashi as support** [05:19] — Wait for a pullback to the Heiken Ashi candles, then wait for confirmation that price respects the level (a green candle) before entering the trade.
- **Strategy: Risk management and exit** [05:36] — Set stop loss at the low of the Heiken Ashi candles, take profit at 1.5 risk-to-reward. When TP hits, sell half the position, move stop loss to entry, and exit fully when the Heiken Ashi turns red.
- **Claim of profitability** [06:07] — The presenter claims to have made over $70,000 in 60 days using this strategy, calling it one of their favorites.

### Conclusion

The video presents a practical upgrade to the Heiken Ashi indicator, offering a way to combine trend smoothing with raw price action, along with a specific strategy that emphasizes confirmation and risk management. While the claims of profitability are unverified, the methodology provides a structured approach for traders.

## Transcript

I found an indicator that is infinitely better than the heiken ashi. The heiken ashi, is an indicator that a lot of traders use to find the general direction But what if I told you I found a secret indicator that performs WAY better than the normal heiken
indicator and its 2x more profitable than the normal heiken ashi. Ope, come, come on back. There ya go. This indicator uses I m gonna share with you what the indicator is, how to use it to its best potential, and
I m even going to share with you a profitable strategy with this indicator. Lets get straight to it. Okay, so is your typical normal candlesticks. Where there s a bunch of red and green everywhere and the chart is pretty hard to tell which
way the price is heading with all the noise. This is bad because it could lead to false signals. This is a chart with the heiken ashi. It eliminates the noise to where the candles are replaced and you can clearly see which direction the
But this indicator isn t perfect *gasp* One of the main issues with the heiken ashi is it doesn t provide the juicy information normal candles sticks do. It only provides the smoothed out version of the price, not
Finding chart patterns or key areas of support or resistance. That s until god himself made this new secret indicator. Actually, his name is jackvmk. But you get my point it s a good indicator.
Now the reason this indicator is so good is because instead of replacing your candlesticks it just adds a heiken ashi overlay so you can see both the price action of the candles AND the heiken ashi all in one so you get the best of both worlds.
Another great thing about this indicator is it s way better at not providing false signals compared to the normal heiken ashi. For example, this is a chart with the normal candles in this uptrend but then it placed some red ones where it could easily fake you
out and make you sell early. Now this is the same exact chart with the improved version of the heiken ashi and as you can see it only provided green candles. So, there s no fakeouts and you would of made way more profit on this trade.
So now that we know why this indicator is good, lets add it to our chart and give you the best possible settings for this indicator. I ll be using tradingview as my charting platform. Go to the indciators tab and type in smoothed heiken ashi and click this one by jackvmk
Next go to the settings. Alright now the optimal settings depends on changing these two settings to 5 and 5. As this makes it better at analyzing short term
these settings to 20 and 20. As that will make it better at finding long term trends. are going to keep it at default at 10 and 10.
So this how I use the indicator. Green candles signals an uptrend. Red candles signals a downtrend. This means it s great for signaling possible But here s a secret trick you can use in order to raise the chance of you finding these perfect
as a way to identify strength. For example, here the candles start off small and starts to slowly get larger and larger. Signaling the market is gaining momentum and If the candles start to get smaller. You can easily identify the market is losing momentum
Here the chart is in a downtrend signaled by the red candles, but you can start to see the candles are getting smaller and smaller, showing its losing the downwards momentum. Then we get a green candle. This signals a market shift is likely to occur,
You know why this new indicator is better than the normal heiken ashi And where to begin to start reading it Now it s time to get into some actual profitable strategies using this amazing indicator.
But first. Let s get into some of my favorite strategies with this indicator.
Now I want to make this clear. You shouldn t just enter a long trade because the heiken ashi turns green and enter a short position just because it turns red. This will not work in the long term. Instead, you should do this.
First you want to find a strong downtrend. Again, we can do this by finding red heiken ashi candles and we want to see the candles getting larger and larger. Signaling this is a strong downwards trend. The next step is finding a trend change.
We can do that, by seeing the red candles start to get smaller and then a color shift from red to green. But you aren t going to enter yet. Instead, we are essentially going to use the new heiken ashi candles as a support.
Wait for price to do a pullback and come back down to the heiken ashi candles. But we still need a little more confirmation. Wait for price to show its going to respect Once we get the green candle, we can now officially enter the trade.
Set your stop loss at the low of where it the heiken ashi candles earlier. And set you take profit to a 1.5 risk to reward ratio. But we aren t don t yet. Once price hits your take profit, sell half
of your position for guaranteed profits. Then, move your stop loss to your entry. We are then going to wait for the heiken ashi to turn red to sell the rest of our position. Once it does. Exit the trade fully for some really nice profits.
This is a beautiful strategy. I absolutely love using it. Test it out and let me know how it worked for you on Instagram. Next we are going to over how I made over $70,000 in 60 days using this specific strategy. This one, is one of my favoirts I use every
time!