Heikin Ashi Divergence Strategy — Transcript

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1. 0:00so a lot of you guys are still
2. 0:01struggling with the basics you feel like
3. 0:03there's way too much information in day
4. 0:05trading there's moving averages they
5. 0:07macd there RSI tqp NSA xqy so many
6. 0:12acronyms it's information overload so in
7. 0:14this video I'm going to give you a quick
8. 0:16and simple strategy that's going to work
9. 0:18on the 15minute and the 1 hour time
10. 0:20frame so you have longer trades more
11. 0:22time to breathe more time to analyze and
12. 0:25not rushing to get into a trade on a one
13. 0:27minute time frame let's get into it so
14. 0:29the first thing that you're going to
15. 0:30want to do is jump onto the 1 hour time
16. 0:32frame on your charts you're also going
17. 0:34to want to change your chart candle
18. 0:36colors to something more neutral I use
19. 0:38yellow for bullish candles and white for
20. 0:40bearish candles it's neutral your brain
21. 0:43does weird psychological things when you
22. 0:45see red and green fear anxiety you just
23. 0:48don't want it now the number one rule
24. 0:49that I want you to keep in mind is that
25. 0:51when price is trading in a Range like
26. 0:53this for a long period of time this is
27. 0:55December 20th last year this is today we
28. 0:59know tou things like this okay what I
29. 1:01want you to look for is nice trending
30. 1:04Market you want to see nice movements up
31. 1:08and down markets go up and down that's
32. 1:10what markets should do when markets are
33. 1:13flat it's boring and dangerous you want
34. 1:16to see price moving up down up down so
35. 1:20what I want you to focus on is primarily
36. 1:22the 15 minute the 1 hour is more for
37. 1:24swing trading I like 15 minute it's nice
38. 1:26and slow it'll give you time to breathe
39. 1:29and think how do you know when an
40. 1:31uptrend is going to stop two things the
41. 1:33RSI is going to be overbought
42. 1:36overextended for a long period of time
43. 1:38and you are looking for divergences that
44. 1:41are within the 7030 range so I bet we
45. 1:44can find an example right here if we use
46. 1:46our highlighter tool on these high
47. 1:49points I bet we could find a Divergence
48. 1:51in between at least two of these so
49. 1:54these are two separate lines between
50. 1:56this point and this point and we look at
51. 1:58the RSI we created a higher high and on
52. 2:00the RSI we have a higher high then the
53. 2:02next one we created another higher high
54. 2:05while the RSI made a lower high showing
55. 2:08us a very important thing a lower high
56. 2:11in an uptrend is what we call a loss of
57. 2:14momentum always keep in mind that the
58. 2:16RSI is a momentum indicator higher highs
59. 2:19and higher lows on the RSI is going to
60. 2:23show you that the momentum is up once we
61. 2:25start making lower highs on the RSI it
62. 2:28is an early indication that the trend is
63. 2:30losing momentum and may go to the
64. 2:32downside so once this happened and we
65. 2:35failed to make a higher high right here
66. 2:38you can see we are now trading within
67. 2:40the 7030 range of the RSI right here at
68. 2:44this point I am looking for short
69. 2:45positions the one thing that can help
70. 2:47you a lot is switching to hike and ashy
71. 2:50candles so what you're looking for at
72. 2:53this point with a hike and ashy candle
73. 2:55is a candle that is bearish with no wick
74. 2:58on top and that is your entry point this
75. 3:01right here is the first candle that
76. 3:03rejected from here had a no Wick candle
77. 3:06so what your position size looks like is
78. 3:09an entry here with a stop loss above
79. 3:11here and all you're going to do is a 1
80. 3:14to two risk to reward ratio that's all
81. 3:17you will ever need if you do that
82. 3:19consistently you will make money you can
83. 3:21also hold these trades until you see
84. 3:23your first bullish candle or the first
85. 3:26candle that changes color so if you did
86. 3:28that the candle close right here here
87. 3:29you're looking at a 1 to 2.4 so it's a
88. 3:32very simple recipe you're looking for a
89. 3:35Divergence a failure to make a higher
90. 3:38high or a lower low and your first hik
91. 3:41and ashy candle with no Wick back test
92. 3:43it let me know what your results are in
93. 3:45the comment section down below