Highly Profitable Day Trading Strategy: Heikin Ashi + Parabolic Sar + EMA
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- čas přidán 21. 07. 2024
- If you follow my channel, you know that I usually swing trade instead of scalping or day trading. But today's strategy is for day trading. You can trade like a pro with this simple but effective strategy. #heikinashi #scalping #tradingjournal
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THIS IS NOT INVESTMENT ADVICE. I am not a financial advisor, videos in this channel are just for educational purposes.
Thank you for the video today tried this strategy and it worked perfectly. Now I feel more confident in my trades
This is the first vidoe of yours which made me to follow your channel. Really liked the way you explain the strategy. Thanks alot.
Awesome, thank you! Welcome aboard!
You make a great point, which is that its crucial to stick to the plan and strategy. Probabilities matter and consistency!
I’ve been looking for this explanation for so long. For somebody new it’s a great explanation. Life is never guarantee but it sure puts the odds in your favor. Thank you for your hard work.
Glad it was helpful! You're very welcome.
Thanks a lot for your sharing. Worked perfectly for M1 & M5 timeframe
Thanks for the video- Would like to see a back testing video on different strategies- and possibly what markets are best to use it on
Of course, I can create a backtest video! Since profits are tight with this strategy, the best way to use it is with leverage. So I would say forex and ETF's are the best market to use it.
Wowowow this worked so well! Thank you so much for not gatekeeping knowledge!
You're so welcome!
@@TradingJournal1 which forex site do you use?
Simplified, precise and perfect..
Glad you liked it!
ABSOLUTELY LOVE THIS! Thanks so much!
You are so welcome!
This trade is amazing. THANK YOU!!!
Our pleasure!
Thanks alot price action is highly needed
We hope to see it ❤️
I am planning to create a series about price action
if you don't understand it, don't hesitate to ask and just hope someone answer, in which most youtubers never answer a question. LOL. Thanks for the video. Learned one strategy again.
Thank you for your video. It looks simple and I am going to test it. 😊
You’re welcome 😊 Have fun!
i'm sri lankan .. you Trading Strategy is good ..i think i love this tutorial
Thank you
sounds great! I'll test it and share detailed results :)
Please do :)
This is what I'm looking for in a tutorial! Thanks man
Glad I could help!
thank you very much.It is not too late to mend the fold even after some of sheep have been lost.
Thanks for the work you put into this. Perhaps the trades could have the ADX10 as a filter? That would get rid of a lot of those flat areas.
Welcome. That's smart actually
hey how can I get this filter?
simple yet effective , for testing i added ADR. entering only when ADR & green line above 20 is reducing the probability of an entry to go into sideways/consolidation. thanks!
You'r welcome. That's smart
Can you give out some more info about ADR and how not to enter when sideways?
@@Eriknguyeb check this video (czcams.com/video/jfQ-CyyWsSw/video.html) for more information on the ADX and DI indicator.
Personally i would stick to all the criteria mentioned in this trading journal video and along with it for the entry candle will look if
1) ADX line is above 20 for more safer trades
2) ADX and DI + are above DI- line for a bit of risky trade (even if ADX is below 20)
Trading with ADX above 20 is much more safer as the it indicates strong momentum which will be beneficial for trading options with low delta and high theta & high IV (mostly like AMZN,GOOGL, TSLA, SHOP etc) , you wouldnt want weak momentum as theta will eat option prices quickly. For high delta and low theta options 2nd option can still be safer.
hope this helps. CHEERs!
How is it going with you now?
@@bambya100 salute
Strategy works Great on 1, Minute 3, and 5 Minute I Trade Spy and QQQ the more Liquidity the better.😊
Amazing Stuff. You made my life easier.
Glad to hear that
The close of Heikin Ashi candles on chart is different with the real close of the price, as it is kind of average. So when you open a position at the end of a Heikin Ashi candle, the result would be higher price to enter the position and bigger stop loss. there is 2 issues, you can not estimate your stoploss for risk management properly and also the real position ratio would be lower than 2.
QUESTION: why would this not work in higher time frames?... I'm more of a swing trader and have relatively little time to check in on the market, and of course I do have to check in on it regardless of whether I day or swing trade... if this exact strategy would not work in higher time frames, how would you tweak it to make it work on the 4H, D, W time frames?... Loved your strategy by the way, and it was explained exceptionally well, thank you!
First of all, thank you my friend. I am also a swing trader like you. To be honest, I haven't back-tested it with high timeframes, so it might work I am not sure. However I am sure that it works on low timeframes. You might try to change EMA with the SMA for swing trading, and you should test it of course before trading.
Hello. Thank you for this great strategy. I was wondering if you can recommend a few different currency pairs that would be historrically good to trade with this strategy?
WOOOOW, THX 1000000000 times man. This strategy has a high win rate!
Glad it was helpful!
What is it's win rate and loss rate ? And did you backtested it ?
Thank you for your hard work, What is the best and most profitable strategy for scalping in your opinion?
Awsome, This is Pin Point Bro... Great
Thanks ✌️
On point this video is awesome, love it.
Glad you enjoyed it!
Love it ! How bout' an Heikin-Ashi video !
Thank you!
ty for the video i go in backtest.
Sorry Sir. to ask this, I'm a newbie. what if the candle(trends line) went down from the ema line (horizontal but slightly uptrend) should I use the technique for bullish ratio?
Your explanation is very good.. Thank you
Thank you for sharing. it is a very good strategy. Good for futures too. Good sculp.
You're welcome!
5
Fab, Looks like a nice simple Strat and thanks for taking the time to show us. I'd like to try, which broker are you using to place trades please?
You're welcome. I use an european broker just because I live in Europe. It depends on where you live
Very good explanation. Thank you for sharing.
Your welcome!
@@TradingJournal1 sir I have some questions about that strategy if possible kindly send your email address. Thanks take care
Thank for this strategy looks great. any suggest on what kind of stock would work better (large caps, small cap, high volatility etc)? why the 5 m tf, do you ever tried on a lower or higher timeframe (es 3 m, 10 m)? thanks again
Actually it works well with all stocks and forex pairs. I have tested it with 15-min and 1-min as well, it was profitable but not as much as 5-min.
Thanks!
Woow. Excellent . TFS 👍 3.30/ 6.30
Thank you! Cheers!
Hi, how to set alert for parabolic car for the star when it changes trend from up to down or vice versa? I would appreciate it if someone could answer, thanks
I am new to trading and thus was the very easy to understand.
Glad to hear that
thanks so much I will try it
Hope you enjoy
So far looks good. If you get up on a trade you can choose to sell at the next PSAR sell signal, instead of waiting? Or we sell at 2R is that comes first, of course.
Actually, you can. You can try to move your SL and TP targets after price moves in your favor
Thank you for video! Does this work for es or nq futures?
Your welcome! I cannot answer this before testing it, but it should work on both.
I find that for intraday forex trend trading most important relevant (Guide)trend direction is ON 15 minute, 1h and 4h charts only-- For intraday trading weekly & monthly trends do not matter much(too far removed from intraday field of activity) & can be ignored. For simplicity sake if 15 minute ,1h & 4h trends are in the same direction, you have a trade set up in the same direction (one could fine tune entry 0n 5 minute charts). In general if daily candle be in the same direction for any trade it is better but not A must.--Sir, what do you have to say?
Thank you for the strategy! Which pair does it work the best on?
You are welcome! Works well with all major forex pairs
Thank You Sir. Supereb stradegy, Thanks for sharing.
My pleasure
Please provide us with win rate? It works best on specific pair or on all pairs? I trade mainly gold how does it work on gold?
HA Candle pricing representation is different than regular candle (actual pricing). So, how to make entry when we got entry (BUY/SELL) signal using HA Candle? I mean, Entry (HA Candle Close price) is different than actual candle/price close that particular time 5-min candle.
Nice question! Yes, Heikin Ashi represents the price differently. You should use limit order and your entry should be based on Heikin Ashi price. And you should be careful if the difference between the real price and your entry is big. Sorry, I forgot to mention it!
Really liked the video!
I've got a generell question : Would you recommend setting a stop - loss + a take - profit and then just shut off your pc/laptop etc? ( For possible stress release or so ) or would you rather stay focused and sit in front of your scrren because you may realize you were to greedy and need to close earlier, sl is to low, etc...
i have a same problem🥲
Thank you Sir for this wonderful strategy....
Most welcome
Thanks for sharing this strategy..I will test with price action.
Best of luck! Don't hesitate to share your results with me.
@@TradingJournal1 After test this strategy , I get 50% results positive ...so , I used crossing EMA plus RSI and the percentage was increased to 75% positive results. Combine few indicators with Price Action and you will get profits at the end of the week. Do not forget to have a risk management strategy. Usually 1:2 worked well to me with this strategy. Thanks and enjoy your trading 👍🏻
@@markstilig7378 Hi sounds intresting what EMA's did you use? and what rule for RSI?
@@LumbreYT I used EMA 10,30,120 with a RSI 30,50,50 10min chart. 10 crossed 30 with confirmation candle ,and RSI above 50 BUY ..opposite for sell order. Price above EMA120 you looking for buy ..below looking for sell.
Wow... thank you so much
Most welcome 😊
Awesome content! Thanks, man! Has anyone been able to backtest this strategy? What's the average win rate???
Thanks in advance
Thanks mate! I have back-tested it, win rate was %46 with 2 risk/reward ratio. You can find the video in profile
@@TradingJournal1 46% is not that good. Too many losses.
thanks for sharing going to test this on BTC
Best of luck! Feel free to share results with me.
I love this strategy!
hi... are you trading with this strategy?
Nice! Have you backtested it yet?
hi everyone here. Please explain the short (last) trade in this tutorial. dint get it at all. Thanks in an advance !
Is there a way to create an alert for this setup in TRADING VIEW? If so, please advise or creat video on how to setup alert
To be honest, I have no idea :)
Hi, I greatly enjoy your videos, they are very useful to me. It would be great if you could make one on Heiken-Ashi as you suggested, thanks
Great suggestion! I am glad to hear it helps someone!
@@TradingJournal1 Thanks, looking forward, Ciao
Good teacher!!!
Glad you think so!
Looks good but it ll be great if a indicate is made for an alert on the conditions mentioned
Great point!
love your video , just wonder isn't 20 ema good enough since it's for day trading and short term play?
Thank you! Well I thought the same and tried it both with 20 and 200 period EMA's. And 200 period worked a little bit better. There wasn't a huge difference, but considering that 20 EMA gives many fake signals, having a long losing streak is possible, so I would stay with the 200 EMA. But you should test it for yourself of course!
Can anyone please help on how do we create a screener for this strategy?
Seems to be helpful. I trade in NSE,India. Can it be used to trade in options? Is any other indicator to be used with it?
It can be after backtesting
Thanks Pal. Great piece of info & to the point. Do you think this will work in index options trading. Subscribed to your channel.. Cheers 👍
Well, it is impossible to tell without a backtest, but theoretically it will.
THANK U DEAR
LOVE U :)
You're welcome 😊
Thank you so much for the video but I need the cheap cheat Sir. Thank you.
Glad you enjoyed it. You can find it at the end of the video!
Thank you for this amazing video! Can someone explain to me how can I set an order such that I go long or short at the closing price of the current candle? Preferably on Binance. Thanks a lot.
You're so welcome! Actually, if I am not mistaken, you will need a bot for doing that.
@@TradingJournal1 Thank you very much!!
I watched this video fewdays before. I started testing this strategy. I will report the win ratio after my 100th test... It seems good. 7/10 till now.
Perfect! Yes 10 tests are not enough for conclusions. Btw did you change risk/reward ratio or timeframe, or following the regular strategy?
Please let us know your backrest ratio! Would love to know.
@@TradingJournal1 40 tests 27 wins till now. M following the same method (risk/ reward ratio). I am learning more about this strategy. Any way its working better than others😍. And its easy to read the graph. Errors occured only few times
@@KandFzooz Are you doing it at 3rd candle or waiting for a 4th to increase win rate?
@@cryptoattract4758 Third candle. And another important thing you have to notice is that the curve of EMA 200. Practice this method. Then you can understand it easily
There is a strategy called Heikin Ashi the whale, this one has the same setup, and can be configured with other confirmation indicators
Amazing!
Thanks!
The key to making money in stocks is remaining in the stock market, investors often move in and out of the stock market at the worst possible times, missing out on that annual return.
@Zachary Owens Trading when done right can really set you up for some really good profits.
Most of us trader are searching for that elusive method where they never lose or can win eight or nine trades out of 10.
@@noelstout3056 There are no magic words or millionaire insider tricks to succeeding in the stock market
Thank You sir....
Most welcome
My favorite strategy.
Glad you enjoy it!
I would like to see 100 trades of the daily SPY tested with this strategy. At first glance, it looks good.
I try not to upload many testing videos to keep this channel interesting, but I might create it if everyone wants.
@@TradingJournal1 yes please, I do wants it.. 100 trades for validation that this strategy is good.
i back tested it atleast 25 times and majority of my trades have been winners i cant give specific numbers because i occasionally trade but on the 5 min timeframe its a perfect strategy atleast from my experience.
@@SR-ve6kb how do you tested it? Are you using EA or manual trade?
@@araslumendita2895 manual trading and i tried it on 15 min time frame with bitcoin
Thanks for the video. Does this work for regular stocks or only on forex
It works on both, but since the profit margins are low while scalping, it is more profitable with leverage
@@TradingJournal1 im sorry but what do you mean by leverage?
Thanks 👍
Welcome 👍
may i know if trade can only be made after price pivot was happened? in some cases, i found it even good say in long trade the bullish candle is strong without tail and the parabolic SAR is well below and then the uptrend is strong, or vice versa in short trade, the bearish candle is also strong without tail and the SAR is well above and then the downtrend is strong - but there is no previous pullbacks and also the price pivot. shall i make trades?
Actually, it might work. But impossible to tell without a backtest.
Hi do you have link for how to do Short Position / Long Position although i understand Long Position i confused with Short Position ..
I like your videos !
Hope you read this
Just flip the chart upside down and go long haha 📈📉
Well explained...
Thank you!
THANK YOU
You're welcome!
Hey sir i want to be learn from you how much cost your great ❤❤
Thank you for your work and this awesome vid. Can you share your best day trading and swing trading strategy for Crypto?
Great suggestion! Most of the strategies I share can be used while trading crypto also! But I really believe that you can trade crypto naked, just with price action and support&resistance
@@TradingJournal1 thanks for reply. That's great and would also make for a cool how to illustration.
By trading "naked" with support and resistance, do you mean longing and shorting momentum with support and resistance confluence?
@@cryptoattract4758 Yes! I usually don't use any indicators while trading cryptocurrencies. I am not saying that you should do the same, it is just what works for me :)
So the main thing is you say not to play calls aka buy when it's under the 200 EMA. Well I'm looking at Facebook right now and there are tons of opporunities showing up using the Sar and 200 ema to buy or buy calls but they are under the 200 ema. So using your stragety would you recommend skipping all buys/calls unless it's above 200 EMA and just ignore them
Thank you
Welcome!
There are times when the Up or down trend continues and Sar dots does not change direction or the when color change appears. What is the recommended trade in that situation, stay in the trade or exit once a candle of opposite color appears
Depends on what kind of trader you are. If you want to limit the risk you take, you should exit. Otherwise, you can stay.
Pair with simple Consolidation zone strategy aka wait for it to break out of the zone, it will works perfectly.
Hi... good video... I have a question... should I to move the stop lost or take profit between the trade?, for instante... move to breakeven or less the stop lost... or will I should leave quiet this points? thanks so much!!
Cheers mate! great question, if the trade moves in your favor, it might be better to move them above to breakeven. However, never move the sop-loss to lower if things don't go as planned
@@TradingJournal1 Thanks for ans, I have other question, when I must enter to the market, at market or (limit)when in close the before candle? Regards from Colombia!
Stop-loss put above parabolic sar for shorts and stop loss below parabolic sar for long trades right?
Yes, that's right!
what if you have 3 or 4 red candles with the parabolic sar below?
You can go long in the second green candle if the price is above the 200 EMA
Hello! Nice vid, does this work on every currency against each other? What broker do you recommend for trading like this?
When do you take the trade live? When the candle is closed or when it's still open?
Thank you for your kind words! Yes, this works on every currency. The broker you should use depends on many factors such as: where do you live? what do you expect from a broker? which country the broker is regulated in?
please let me know that is it applicable to spot trading of crypto? or futures only?
It can be after backtesting
great strategy!i really like this kind of video that is clearly understand and straight to the point topic..could you give me a cheatsheet as well..i would much appreciate it..thanks
Glad to hear your kind words! You may find the cheatsheet at 7:40
thank you for sharing!
i have seen that if the second green candle has a tail but the third doesnt, we can still take the trade if the rest of the criteria fits. what is your thoughts on this? im trading crypto markets if that makes a difference
Your welcome!
Yes, if rest of the criteria fits, you can still take the trade in the third candle. It is the same logic for crypto as well.
Plz let me know entry point?
Thank you for this video. Can you use and guide us in live intraday market
Glad you enjoyed it! What do you mean by guide?
@@TradingJournal1 I mean give us some more knowledge by doing a live market demo with this strategy
Did you end up doing the video on a 100-trade backtest of this strategy?
Yes! You can check it out here: czcams.com/video/Sy18XEnCDKQ/video.html
3:33 I'm confused how do you open a trade at the second candle. you can't actually see if it's a green candle until it closes.i have seen it green then turn red.
You open a position at the close of the candle. So, you will know if it is green or not
Open the position at the close of the second candle the meets the criteria?
Must the entry price be 2nd / 3rd? What about 4th?
I wouldn't take it
I think it would have been good to address the entires since heiken is not the actual price, when you go to place your order you'll be in for a big surprise.
You can use the Heiken Ashi indicator instead of changing to Heiken Ashi candle and then it will show you both the ordinary candles and the HA. Hope that made sense
What platform are you using? I’m having trouble finding heiken Ashi on a trading platform
Tradingview.com