Heiken Ashi Scalping: ADX & Stochastic Confirmation
This M5 strategy smooths out price action using Heiken Ashi candles, allowing for clearer trend identification. It uses a combination of ADX for trend strength and Stochastic for momentum to identify high-probability entry points.
Strategy Profile
Timeframe
M5
Chart Type
Heiken Ashi
Indicators
ADX + Stoch
1. Indicator Setup
Configure your chart as follows:
- Main Chart: Heiken Ashi candles (and a corresponding HA moving average if available).
- Stochastic: Settings 5, 3, 3.
- ADX: Period 14.
2. Long Entry (Buy) Rules
- Price Action: Price is above the Heiken Ashi average; two Bullish candles form in a row.
- Trend: ADX is above 22 and rising.
- Momentum: Stochastic is moving up.
3. Short Entry (Sell) Rules
- Price Action: Price is below the Heiken Ashi average; two Bearish candles form in a row.
- Trend: ADX is below 22 and falling (Note: Follow specific strategy rules for this condition).
- Momentum: Stochastic is moving down.
Trade Management
- Take Profit: 10-15 points.
- Stop Loss: 5-10 points.
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