📊 Trading with Heikin Ashi Trend Strategy Using Python Automation
Heikin Ashi is a powerful candlestick technique used by traders to identify market trends more clearly. Unlike traditional candles, Heikin Ashi smooths price action, making it easier to spot trends and reversals . In this blog, we'll explore: ✅ What is Heikin Ashi? 🔍 How to use it for trend trading 🤖 Automating trades using Python (with backtest example) 🔹 What is Heikin Ashi? Heikin Ashi means "average bar" in Japanese. It uses modified formulas to generate candles: HA_Close = (Open + High + Low + Close) / 4 HA_Open = (previous_HA_Open + previous_HA_Close) / 2 HA_High = max(High, HA_Open, HA_Close) HA_Low = min(Low, HA_Open, HA_Close) 🔍 These smoothed candles help eliminate market noise and reduce false signals. 📈 Heikin Ashi Trend Strategy Rules We’ll use a simple trend-following strategy: ✅ Buy when Heikin Ashi candles are green continuously for 3 days ❌ Sell when candles turn red continuously for 2 days 🛑 Optional st...