You must have heard of multi-timeframe analysis if you are a forex trader. Many traders confirm technical studies over several timeframes to increase their odds of success. Thanks to the TF Heikin Ashi Arrows indicator, it is easier to assess four timeframes in a single window.
What are 4 TF Heikin Ashi Arrows?
Heikin Ashi is a form of candlestick that reduces the noise on the chart and allows you to see a clear trend in the market.
The TF Heikin Ashi Arrows indicator is a modified form of Heikin Ashi that comes with arrows pointing at potential market reversals and a window below the chart indicating which timeframe is bearish or bullish.
4 TF Heikin Ashi Arrows Strategy
Trading the 4 TF Heikin Ashi indicator is quite simple. While placing the indicator on your chart, you will see the following settings:
You can set up the timeframes, MA method, alerts, or colors based on your preferences. However, the default settings are fine to use. Once installed on the chart, you can look for trades using the indicator.
The simple trading method is to wait for the arrow to appear on the hourly timeframe to enter the trade. However, the H1, H4, and D1 indicator dots should be uniform (red or green) to confirm the entry. Though there are four timeframes, the weekly timeframe is broad and mostly indicates a long-term trend. I think trading in line with the weekly trend can give stronger signals although they may be less frequent. You could always trade multiple currency pairs to make up for this.
Here’s the strategy to find a long signal:
- Use the hourly timeframe.
- Wait for a green arrow to appear on the chart.
- Look into the indicator window. The last dots for all the timeframes should be green to enter your position.
- You can place a stop-loss around the recent lows. Alternatively, you can exit at a loss when you see a red dot on the hourly line.
- For a profit, you may place the take profit around the next key resistance or manually close when the hourly dot turns red.
Here’s the strategy to find a short signal:
- Use the hourly timeframe.
- Wait for a red arrow to appear on the chart.
- Look into the indicator window. The last dots for all the timeframes should be red to enter your position.
- You can place a stop-loss around the recent highs. Alternatively, you may exit in a loss when you see a green dot on the hourly line.
- For a profit, you may place the take profit around the next key resistance or manually close when the hourly dot turns green.
4 TF Heikin Ashi Arrows Pros & Cons
- You can find trends of four timeframes on one chart.
- You can easily determine a strong trend, weak trend, or consolidation.
- The success probability can be higher while using the arrows with higher timeframes.
- Trading signals do not frequently occur.
- The weekly trend doesn’t easily change. So, you may not find reversals very early.
The 4 TF Heikin Ashi Arrows indicator is a nice trading tool to determine market conditions and allows you to find a high-probability trade setup. However, this is not a holy grail. So, always use your prudence while dealing with the indicator and manage your risks accordingly.
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