Heikin X Hull MA (beginner)

Heikin X Hull Moving Average Strategy

Notes:

These indicators and concepts are specifically designed for TradingView.com

All indicator breakdowns will be found in the indicators tab on the home page of: STRATEGY

Settings and Indicators

Settings

1. Go to INDICATORS and type in "Hull Suite" by InSilico
2. In SETTINGS of HULL SUITE change length from 55 and change it to 100
3. Go to CANDLES and click on "Heikin Ashi Candles" (Image Below)

How to apply Heikin Ashi

How to Enter

For Long Position

Both of these parameters must happen together to enter a long, however they don't necessarily have to happen in a sequential order

• Heikin Ashi Candles must turn green

Heiken Ashi Turning Green

• HMA must also turn green

HMA Turning Green

• If BOTH parameters apply you can enter a trade

Both HMA and Heikin Showing Long

In Lehmans Terms: If both the stock turns green, and the line below the stock turn green, the stock is likely to go up.

How to Exit

You can exit the long when Heiken Ashi, and HMA turn red. You can also exit sooner with only one of the indicators turning red if you want to exit on quick profits

This strategy should also run a ATR stop loss to help with entering or exiting your trade

Potential Exit Points For Long Position (Highlighted in Pink)

In Lehmans Terms: If both the stock turns red, and the line below the stock turns red, the stock is likely to go down. So consider exiting.

For Short Position

Both of these parameters must happen together to enter a short, however they don't necessarily have to happen in a sequential order

• Heikin Ashi Candles must turn red

Heikin turning red

• HMA must also turn red

HMA turning red

• If BOTH parameters apply you can enter a trade

Potential Shorts (Highlighted in Green)

You can exit the short when Heiken Ashi, and HMA turn green. You can also exit sooner with only one of the indicators turning green if you want to exit on quick profits

Potential Exits of Short Position (Highlighted in White)

This strategy should also run a ATR stop loss to help with entering or exiting your trade

In Lehmans Terms: If both the stock turns red, and the line below the stock turns red, the stock is likely to go down.

How each of the indicators work

This is advanced. Don't feel alarmed if you don't get this part. This is very in-depth.

Heikin Ashi

Heikin-Ashi candles are a type of Japanese candlestick chart that are used to identify trends and momentum in financial markets. Unlike traditional candlestick charts that show the open, high, low, and close prices for each time period, Heikin-Ashi candles use modified values that smooth out market noise and create a clearer picture of market trends.

The Heikin-Ashi technique uses modified prices to calculate the four data points for each candle. The modified prices are calculated using the following formulas:

1. Heikin-Ashi Close = (Open + High + Low + Close) / 4
2. Heikin-Ashi Open = (Previous Heikin-Ashi Open + Previous Heikin-Ashi Close) / 2
3. Heikin-Ashi High = Maximum of High, Heikin-Ashi Open, or Heikin-Ashi Close
4. Heikin-Ashi Low = Minimum of Low, Heikin-Ashi Open, or Heikin-Ashi Close

The resulting candles have a smooth appearance that makes it easier to identify trends and momentum. Upward momentum is identified by a series of green candles with small lower shadows, while downward momentum is identified by a series of red candles with small upper shadows. The absence of shadows also means that Heikin-Ashi candles can help traders identify key support and resistance levels more easily.

HMA

The Hull Moving Average (HMA) is a type of technical analysis indicator that is used to identify the direction of a trend in financial markets. The HMA is based on the Weighted Moving Average (WMA) and uses a weighted average of the past price data to determine the current trend. The HMA is calculated using a series of weighted moving averages of the price data. The weighted moving averages are calculated using different lengths of time, with shorter periods of time having a higher weighting. The result is a moving average that is smoother and more responsive to changes in the trend than traditional moving averages. The HMA is designed to eliminate lag and noise in the moving average calculation, providing a more accurate representation of the current trend. It is also designed to be less prone to false signals than traditional moving averages. Traders often use the HMA in combination with other technical analysis indicators to identify potential entry and exit points in the market. For example, traders may use the HMA to identify the direction of the trend and then use other indicators such as the Relative Strength Index (RSI) to identify overbought or oversold conditions. In addition, the HMA can also be used to identify potential reversals in the market. When the HMA changes direction, it can indicate a potential reversal in the trend, providing traders with an early warning signal to adjust their positions.

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