The indicator represents the usual bars of the trading session. The difference between the classic Japanese candlesticks and this indicator is that the VIP_HeikenAshi indicator takes the bars to build the price and averages them, making the session more smooth. This is a very important point, since the foreign exchange market is more volatile than other markets.
VIP_HeikenAshi works slower than Japanese candlesticks, because the signals arrive with a
delay and protects us from false market entries.
- Red candles with shadows. The downward trend is beginning to weaken. It is possible to close existing short positions.
- Red candles without shadows. A strong downtrend, the probability of continuing strong is high. You can add it to an existing position.
- Blue candles without shadows. A strong bullish trend, which, with a high probability, can continue.
- Candles with large long shadows and a small body. In fact, it resembles the doji formation, which symbolizes the fatigue of the trend and the subsequent reversal. But you need to wait for the confirmation of the signal
from other indicators.
- Blue candles with small shadows. The bullish uptrend continues. There is still the potential for upward movement.
[spoiler title=”Read More…”]
Due to the delay, the VIP_HeikenAshi indicator gives fewer false signals, which prevents you from trading against the market. On the other hand, this indicator is easier to read, because unlike Japanese candlesticks, it does not have various confusing formations and formations.