Trading with Heikin Ashi candles, a 13-period Simple Moving Average (SMA), and the Relative Strength Index (RSI) offers a powerful combination for trend identification, entry timing, and momentum confirmation.
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Heikin Ashi candles help smooth out market noise, making it easier for traders to spot the underlying trend. Unlike traditional candlesticks, Heikin Ashi filters out minor fluctuations, providing clearer visuals of whether bulls or bears are in control. When used in conjunction with a 13-period SMA, traders can more effectively identify trend direction — bullish when the price is consistently above the SMA and bearish when it remains below.
The 13-period SMA serves as a dynamic support or resistance level and helps gauge short- to medium-term momentum. By overlaying this moving average on Heikin Ashi charts, traders can visually confirm ongoing trends. If Heikin Ashi candles consistently close above the 13 SMA with little to no lower wicks, it suggests strong bullish momentum. On the flip side, continuous closes below the SMA with long upper wicks imply bearish strength. This moving average can also act as a trigger zone for potential reversals or pullbacks, especially when prices test the SMA from either side.
Adding RSI to the mix further sharpens the strategy. The RSI, typically set to 14 but adaptable, measures the magnitude of recent price changes to detect overbought and oversold conditions. When used with Heikin Ashi and the 13 SMA, RSI can validate trade entries — for example, a long trade setup becomes more compelling if Heikin Ashi candles are bullish, the price is above the 13 SMA, and the RSI is rising from an oversold region. Conversely, a short trade setup is confirmed when bearish Heikin Ashi candles form below the 13 SMA and RSI starts falling from an overbought zone. This trio creates a robust framework for traders seeking reliable and visually intuitive setups.
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Money Management: It is important to follow up with this strict rule of investment: If you have $100 in your account, each open position should be $5 tops If you have $200 in your account, each open position should be $10 tops If you have $500 in your account, each open position should be $25 tops If you have $1,000 in your account, each open position should be $50 tops If you have $2,000 in your account, each open position should be $100 tops If you have $5,000 in your account, each open position should be $250 tops
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00:00Today, I'm going to teach you a simple yet powerful pocket option trading strategy using the Heiken Ashi candlestick pattern, a great method for both beginners and experienced traders.
00:12To make our signals even more accurate, we'll be using two additional indicators, simple moving average and RSI indicator.
00:20Stay with me until the end, because missing any part of this video could lead to confusion.
00:25I'll explain everything step by step, including the exact settings of the indicators, so you can confidently test and use this strategy in your trading.
00:34For a complete breakdown of the strategy, including indicator settings, check the video description.
00:40You'll also find a link to the pocket option trading platform if you want to try it out.
00:45Disclaimer, trading involves financial risk. Past performance is not a guarantee of future results.
00:51This video is for educational purposes only, not financial advice.
00:56Always trade responsibly and consult a financial expert if needed.
01:00Heiken Ashi is a special type of candlestick chart that smooths price movements and reduces market noise, making it easier to spot trends.
01:09Instead of showing every price fluctuation, Heiken Ashi helps us identify strong, bullish and bearish trends.
01:15But to improve accuracy, we're combining it with simple moving average.
01:19Helps track the overall market trend.
01:22RSI confirms momentum and trend strength.
01:25Now, let's break down today's strategy.
01:28Buy trade setup.
01:30Look for an indecision Heiken Ashi doji candle on the chart.
01:33A doji candle has a small body with wicks on both sides, indicating indecision.
01:39If the doji candle is below the simple moving average, wait for the price to break above the SMA.
01:44Once the price breaks above the SMA and the RSI is above the 50 level, enter a buy trade.
01:50Set the trade expiry to 5 minutes.
01:53Sell trade setup.
01:55Find an indecision Heiken Ashi doji candle on the chart.
01:59If the doji candle is above the simple moving average, wait for the price to break below the SMA.
02:04Once the price breaks below the SMA and the RSI is below the 50 level, enter a sell trade.
02:10Set the trade expiry to 5 minutes.
02:13For this strategy, we'll use a 1-minute candle time frame and a 5-minute trade expiry.
02:19There's also an advanced continuation trade strategy I'll share later when we take a live trade.
02:24So keep watching.
02:25Now, let's put this strategy to the test.
02:28I'll take live trades step by step so you can see exactly how it works in real market conditions.
02:33Watch closely and follow the rules carefully.
02:35If you have any questions, drop them in the comments below.
02:39I'll be happy to answer.
02:40If you're new to the channel, don't forget to subscribe for more powerful trading strategies.
02:45Turn on notifications so you never miss an update.
02:48Now, let's dive into the live trading session and see this strategy in action.
02:53All right, traders, we have spotted a strong setup following our strategy.
02:57Let's break it down step by step.
02:59We've identified seven indecision Heiken Ashi Doji candles forming below the SMA line.
03:04After that, a big bullish Heiken Ashi candle has broken above the simple moving average and closed above it, a strong breakout signal.
03:12The RSI indicator has also crossed above the 50 level, confirming bullish momentum.
03:18According to our strategy, this is the right time to take a buy trade.
03:22To increase trade accuracy, it's best to wait for at least two consecutive bullish Heiken Ashi candles after the Doji candles before entering a buy trade.
03:32This ensures the price has gained momentum in the uptrend.
03:35Many traders rush into trades too soon, but waiting for confirmation, like two bullish candles forming after a Doji, can dramatically improve win rates.
03:45Trading is about waiting for the right moment, not just jumping in whenever a setup looks good.
03:50What do you think?
03:51Do you also wait for confirmations before entering trades?
03:54Let me know in the comments below.
03:56Now let's wait for the trade result.
03:58Stay tuned.
03:59Let's see how the market reacts to this setup.
04:01If the strategy works as expected, this should be a winning trade.
04:06We won this trade.
04:07This shows how powerful and accurate this strategy is when followed properly.
04:12Let's jump into the next trade setup.
04:15We found another perfect setup based on our strategy.
04:18Let's analyze it step by step.
04:20We've spotted two red indecision Heiken Ashi Doji candles forming right on the SMA line.
04:26For our strategy, Doji candles don't necessarily have to be only above or below the SMA.
04:33If they form on the SMA line, they still indicate market indecision and can be valid signals.
04:39After the Doji candles, we now see two strong bearish Heiken Ashi candles, confirming that bearish momentum is building up.
04:47The RSI indicator is below the 50 level, which confirms the downtrend and makes this setup even stronger.
04:53According to our strategy, this is a great opportunity for a sell trade.
04:58Now let's wait for the trade to close.
05:01And there it is.
05:02Traders.
05:03A successful trade.
05:05Following our strategy.
05:06This is exactly why patience and proper confirmation are so important in trading.
05:11Instead of guessing, we waited for clear signals.
05:14And that's what helped us win this trade.
05:17Now let's move on and look for our next perfect setup.
05:20Stay tuned.
05:20We have spotted another perfect buy trade setup using our strategy.
05:25Let's break it down step by step.
05:28A bullish indecision.
05:29Heiken Ashi Doji candle has formed below the SMA line.
05:33After that, three strong bullish Heiken Ashi candles have broken out of the SMA line and closed above it.
05:39A powerful breakout signal.
05:41The RSI indicator is also above the 50 level, confirming the bullish momentum.
05:47According to our strategy, this is a strong buy opportunity.
05:52I always recommend that you first test this strategy on a demo account before using it on a real account.
05:58Trading requires patience and practice.
06:01And you should only trade with real money when you fully understand the strategy.
06:06Once you're confident in your results on the demo account, then you can consider using it in live trading.
06:12And there it is.
06:13Another successful trade.
06:14Following our strategy.
06:16Now that you understand the strategy, let's go over the exact indicator settings so you can apply this setup with accuracy.
06:23Simple moving average settings.
06:25Set period.
06:2613.
06:27Color and style.
06:29Choose a color that stands out on your chart.
06:31RSI settings.
06:33Set period.
06:3412.
06:34Along with this, the overbought line of the RSI indicator has to be set at 80 and the oversold line at 20.
06:42These settings help us filter strong buy and sell signals while reducing noise, making our strategy even more effective.
06:49Now that we know the settings, let's move on and look for our next perfect trading opportunity.
06:55Alright traders, here's a perfect example of a trend continuation trade, just as I explained while going over the trading rules.
07:03Let's analyze the setup step by step.
07:05The market is currently in a strong uptrend.
07:08After we won the last buy trade, the price went into consolidation, forming about 7 indecision Heiken Ashi Doji candles.
07:16This means the market was uncertain about whether to continue going up or reverse.
07:22Then, two strong bullish Heiken Ashi candles formed, confirming that the market is now ready to continue moving up.
07:29The RSI indicator is above 50, which further confirms the bullish momentum.
07:35According to our second strategy, this is a great opportunity for a trend continuation buy trade.
07:40A trend continuation trade means entering a trade in the direction of the trend after a temporary pause, consolidation.
07:47This happens when the price takes a short break before continuing in its original direction.
07:52Now let's patiently wait for the trade to close and see the final result together.
07:56And there we have it, traders.
07:58Another winning trade using our strategy.
08:01Quick recap of today's session.
08:02We executed multiple trades following clear rules.
08:05We saw trend reversal and trend continuation setups in action.
08:10We used SMA and RSI indicators for accurate trade confirmations.
08:15And most importantly, we stayed disciplined and followed the strategy.
08:19Trading is a journey, and every step forward counts.
08:23The key to success is practice and patience.
08:25Before moving to real trading, test this strategy on a demo account until you feel fully confident.
08:31The more you practice, the better you'll get at spotting high probability setups.
08:36If you found this video helpful, give it a thumbs up to support the channel.
08:41Share it with fellow traders so they can also learn this strategy.
08:44Subscribe and enable all notifications so you never miss out on future trading strategies and live sessions.
08:50I'll be back soon with more powerful strategies and live trading sessions to help you trade with confidence.
08:57Which strategy do you want to see next?
09:00Let me know in the comments below.
09:02Stay disciplined, trade responsibly, and keep learning.
09:05Thank you so much for watching, and I'll see you in the next video.
