M5 Heiken Ashi Scalping Strategy

The best scalping strategy for beginners that no one ever told you.

This video provides a clear winning step-by-step guide to how to successfully trade in the Forex stocks Commodities or any financial markets and generate consistent profits so, by the time you finish this video you'll know exactly when to enter high probability trade using the hikanashi indicator.

As usual we'll have plenty of practical examples, the idea is to fully understand this wonderful trading strategy and to make the most out of it. If you want more videos more often please smash the like button subscribe and turn on the notifications Bell so that you know exactly when new content is released a very important point before we start

Everything we discuss in this video can be used for currency trading, stock trading and crypto because price action stays relatively consistent across different assets so we're going to go very in depth in this video

Scalping is the fastest way to make money in the Forex and stocks Market, there are no other methods that can increase the capital of a Trader more effectively so in this video we'll talk about the five-minute scalping trading method then we'll cover every inch of detail about the strategy. This highly effective scalping strategy is very easy to understand and can be applied immediately because it is universal and works in all financial markets.

It can be applied in very short time frame as in the one minute chart as well as on higher time frames.

Vhat is the scalping trading strategy. Whether you're a complete beginner or an experienced Trader you will likely have seen the term scalping being discussed. Scalping is essentially a means to trade certain currencies using real-time analysis with the intention of making a small profit by holding a position for a short period it's one of the most popular trading techniques and with Trader DNA you can learn how to use a scalping strategy to your advantage while Trading

Scalping how to benefit: a one minute or five minute scalping strategy is a great technique for beginners to implement. It involves opening a position gaining some Pips and then closing the position shortly afterwards. It's widely regarded by professional Traders as one of the best trading strategies and it's also one of the easiest to master.

The main aspect of scalping is quantity to this end. It's not uncommon for most traders to place more than 100 scalping trades each day. To benefit from a scalping strategy it's important to choose the best broker for small spreads in commission. Scalping trading tips: successful scalping relies on you being passionate about what you're doing and willing to invest time into monitoring the markets and developing the best strategy. This is because you'll need to wait for the market conditions to give you signals to decide whether to go short or long. Most scalping Traders work on small time scales such as 15 minute 5 minute and one minute charts when day trading. To enjoy returns from scalping you'll need to develop the skills to be able to quickly execute orders and close open positions gaining an understanding of when to make a move while State Trading is crucial too. Choosing the right Market is also important.

Five-minute scalping strategy pros and cons: The beauty of a short scalping strategy is that there is less exposure to risk. Brief exposure to the Forex market and stock market reduces the chances of running into unexpected events like losing money rapidly, small profits and movements are easier to achieve as a larger Supply demand imbalance is required before large price changes occur. The logic behind the one-minute scalping strategy is that small moves happen much more frequently than big ones during a trading session even when the markets are relatively quiet and stable scalpers can make money from small moves. However large deposits are needed to make decent Returns on short scalps a five-minute scalper will also need good instincts, mental arithmetic and fast reflexes. Scalping can also be time consuming and stressful so consider all your options and skill sets before setting your sights on a five-minute scalping spree.

The best five-minute scalping trading strategy: there's no ultimate rule regarding the best trading strategy. The best trading system to employ will depend on the current market conditions. Of course, keeping your Investments safe is important and to do this you'll have to make use of stop losses. Stop losses should be arranged around two or three Pips below the last low point of a swing it's not uncommon to gain 6 or 12 Pips on a trade aim for this and you'll be on the way to success. Before you invest any real funds give a try to a free demo account that allows you to practice with virtual Market, this way you can hone your skills before employing your scalping strategy for real. Start small and scalp lightly and the world of scalping or scalp trading money management is incredibly important if you want to become a scalper and enter the realm of scalp trades you should be aware that you should never invest more than you can afford to lose while scalping can involve performing hundreds of trades in a single day each of these trades should be small enough to not damage your existing portfolio in the event of a loss.

Many professional Traders abide by a one percent rule when seeking successful trade. This means they do not exceed one percent of their overall funds in a single trade. However, even this could be too much if you're using the scalping method 100 trades in a day at one percent each is effectively all of your funds and you might find yourself losing money rapidly so trade wisely.

Five-minute hike in ashy scalping strategy: hikaneshi scalping strategy are some interesting features but that can soften the price movement allow us to design a series of systems and strategies that can be implemented well in different time frames and all financial markets. And now, what is the hikanashi Candlestick? The hikanashi is a Japanese Candlestick based technical trading tool that uses Candlestick charts to represent and visualize market price data. It is used to identify Market Trend signals and forecast price movements. The hikanashi technique averages price data to create a Japanese Candlestick chart that filters out Market noise the absence of Market noise results in a clear illustration of market trends and Direction which helps determine potential price movements. The trading technique assists Traders in identifying when they should hold on to a trade pause a trade or identify if a reversal is about to occur. Traders can adjust their positions accordingly that is either avoid making losses or lock in a profit on the chosen position.

Hikanashi charts developed by Munehisa Homma in the 1700s share some characteristics with standard Candlestick charts but differ based on the values used to create each candle. Instead of using the open, high, low and close like standard Candlestick charts the hikanashi technique uses a modified formula based on two period averages. This gives the chart a smoother appearance making it easier to spot Trends and reversals but also obscures gaps and some price data. The difference between hikanashi and traditional candlesticks: The main difference between the traditional Candlestick chart and the hikanashi chart is that the hikanashi candles provide a smooth averaged version of price action in a chart whereas traditional candlesticks include the noise of major price changes.

Regular candlesticks present a raw version of the open, close, high and low prices of a particular bar and hikanashi candles present an average version that is dependent on always having the previous candles data to calculate the current one. The chart on the left is the traditional Japanese Candlestick chart and the chart on the right is the hikanashi chart. As you can see from the chart on the right directional moves are smoothed out in a way absent from the left chart candles on traditional Japanese Candlestick charts frequently change from Blue to red or up or down which can make them difficult to interpret.

On the other hand candles on the hikanashi chart display more consecutive colored candles helping traders to identify past price movements more easily. You'll notice that hikingashi charts have a tendency for its candles to stay blue during an uptrend and stay red during a downtrend. This is in contrast to traditional Japanese candlesticks that alternate color even if the price is moving strongly in One Direction you can clearly see that the hikanashi chart is much smoother looking in terms of price action. This is why many Traders prefer to use the hikanashi candles since it reduces the noise on the chart and allows them to analyze Trends more clearly. What makes hikanashi different from a traditional Japanese Candlestick chart is how the price is displayed in terms of the open and the close. If you look closely at the hikanashi chart you'll notice that each of the hikanashi Candlestick starts from the middle of the Candlestick before it and not from the level where the previous Candlestick had closed. Hikanashi candlesticks act this way due to the way they are calculated.

If you're interested here's the calculation: Hikanashi close equals average of open, high, low, close midpoint of previous hikanashi bar. Hikanashi equals highest of high high can ashy close hikanashi open. Hikanashi low equals lowest of low, hikanashi close, hikanashi open. By the way, please don't bother to memorize this formula and don't even think about trying to understand why it's calculated this way. It will not help you be more profitable or help you become profitable at all. Just understand that it's meant to help you identify Trends better in the market, also don't mistake the hikanashee bars as a trading system because it's not. If you go long whenever you see a bullish bar or go short whenever you see a bearish bar then you will go broke very quickly like the Candlestick bars it's just giving you information on the market.

Hikanashi price action patterns with candlestick bars you have many different types of price action patterns. You have the doji gravestone, doji and the dragonfly doji, you have the pin bars, you have the engulfing candlesticks and the list goes on and on. There are literally tons and tons of Candlestick patterns but with the hikanashi bars I've categorized them to just three main types of price action patterns.

First, bullish hikanashi bars. With the bullish hikanashi bars you will notice that there's only a wick at the top of the bar but there's no Wick at the bottom. As long as this is an up bar with no Wick at the bottom we consider this a bullish signal.

Second, bearish hikanashi bars. The bearish hikanashi bars are simply the opposite of bullish hikanashi bars. They have a wick at the bottom but not Wick at the top as long as this is a down bar with no Wick at the top we will consider this a bearish signal

Third, indecision hikanashi bars. To simplify the hikanashi bars I've categorized all bars that have Wicks at the top and bottom of the bars as an indecision hikanashi bar so regardless of whether the bar color is bullish or bearish as long as there are Wicks on both sides we will consider this an indecision hikanashi bar.

Hikanashi scalping strategy configuration: first hikanashi candles, second Trend CCI, third 50 period EMA. Important details before trading: first, hikanashi with Trend CCI strategy is a trend momentum strategy, second, the 50 period EMA and Trend CCI histogram always give signals to buy or sell but do not take entries. Third, the trend CCI histogram and the trend CCI line have the same location. Fourth, use hikanashi to spot trading opportunities, fifth, use five minute time frame chart or higher, sixth, the trading strategy can be extended to larger time frame chart and all financial markets.

Buy entry rules: first, the hikanashi candle closes above the 50 period EMA. Second, the trend CCI histogram and Trend CCI line above the zero level, third, waiting for a retest will make you a better Trader. So, in this third step you have to wait for Price retracement above the 50 period EMA, fourth, the entry is confirmed when the hikanashi candle turned bullish after the retracement, fifth, the stop loss is placed in the minimum recent low. Sixth, exit trade when the hikanashee candles change from Blue to red.

Sell entry rules: first, the hikanashi candle closes below the 50 period EMA, second, the trend CCI histogram and Trend CCI line below the zero level, third, once again waiting for a retest will make you a better Trader. So, in this third step you have to wait for price retracement below the 50 period EMA, fourth, the entry is confirmed when the hikanashi candle turned bearish after the retracement, fifth, the stop loss is placed in the maximum recent High, sixth, exit trade when the hikanashi candles change from red to blue.

This should be simple enough or in this video I've included a template with the system that you can simply upload to your chart and it will automatically plot all these indicators perfectly on your charts so there's nothing for you to worry about. Get the download link on the description. Here are other examples of how to trade the market using the combination of trend CCI and hikanashi candles to fully understand this wonderful strategy and to make the most out of it.

This highly effective scalping strategy is very easy to understand and can be applied immediately because it is universal and works in all financial markets. It can be applied in very short time frame as in the one minute chart, five minute chart as well as on higher time frames. As always, if you learned something new or if you want more videos more often make sure you subscribe, click the notification Bell and leave us a like to show your support see you next time.