The Heikin Ashi Trading Strategy !

A thread for Swing and Positional Traders who love Reversals !

Retweet And Share 🔄
@kuttrapali26 @AmitabhJha3
What is Heikin Ashi ?
Go through this Tweet for complete understanding

Tools used
1. HeikinAshi charts
2. 200 ema (black)for Dynamic support and reversal point
3. 21 ema(red) for trailing stop loss
4. Volumes
5. Your own confirmations and modification

200 ema is very important line of support on daily time frame .
Most reversals occur on this area of junction and stock further decides its trend from this point
Mostly stock consolidates near this area beore further move
Example : Breakdown Vs Reversal
1. Heikin Ashi candle shows the trend of a stock
2. Once we get confirmation of 2 Strong Green candles with full body a long trade can be created upon the closing above 200 ema
3. For further confirmation you can use Volume Spikes ,Macd or Relative Strength for filteration
1.200 ema is very important line for support and a stock should be closely watched at that junction .
2 In #bhel we can see how the price bounced back after 2 confirmation green candles.
3. The stock bounced 40% till top before dropping off.
4. Now again approaching 200 ema
Similar Chart : #coalindia
Fresh Reversals
1. 21 ema can be used as trailing Stop loss in such cases to ride the trend
2. One can use Risk Reward of minimum 1:2 for targets.
3. The Rewards will be very high compared to risk .
4. One can maximum have stop at 8%.
Fresh Buying and confirmation of reversal:
#piind closed above 200 ema and above support area.
This is a high probabilty setup for buying as we see volume also picking up and Rs is increasing.
You have to modify this with your own strategy and check what suits you.

21 ema resistance :
Sometimes if the 21 ema is close to 200 ema and stock is bouncing you need to get confirmation closeabove 21 ema for safety .
Many times stocks will take resistance at this are and fall again.
Best confirmation is volume spikes above 200 ema
Examples :
Potential Buy #LAURUS #NILKAMAL #THYROCARE Obviously after confirmation .
#Laurus and #nilkmal looks good for fresh upsde as they both held well in falling market
Screener To find such stocks that have given heikinashi close above 200 ema.…

Modify this by putting more filters according to your own rules !
@caniravkaria @Stockstudy8
To join our private group for free…

To join free telegram group

• • •

Missing some Tweet in this thread? You can try to force a refresh

Keep Current with JayneshKasliwal

JayneshKasliwal Profile picture

Stay in touch and get notified when new unrolls are available from this author!

Read all threads

This Thread may be Removed Anytime!


Twitter may remove this content at anytime! Save it as PDF for later use!

Try unrolling a thread yourself!

how to unroll video
  1. Follow @ThreadReaderApp to mention us!

  2. From a Twitter thread mention us with a keyword "unroll"
@threadreaderapp unroll

Practice here first or read more on our help page!

More from @JayneshKasliwal

28 Nov

To make money in stocks, you must protect the money you have. Live to invest another day by following this simple rule: 

Always sell a stock if it falls 7–8% below what you paid for it. This basic principle helps you cap your potential downside.
And it is the simplest way to make sure you never let a small loss become a BIG one.

Why 7–8%?
The 7–8% sell rule is based on an ongoing study covering over 100 years of stock market history. Even the best stocks will sometimes breat out and then drop slightly below their buy
When they do, they typically do not fall more than 8% below it. If your stock does decline more than 8%, it usually means something is wrong with your chosen entry point, the company, its industry, the general market, or all of the above.

Read 5 tweets
25 Nov
What is HEIKIN ASHI i and How You
Use it ?

A Small Thread
Understand New type of Price Representation on charts.
Maximum Retweet and Share !
@kuttrapali26 @rohanshah619
What is Heikin Ashi?
1. Heikin-Ashi, also called Heiken-Ashi, is translated as an "average bar" in Japanese.
2. The Heikin Ashi strategy is a useful tool used in identifying market trends and
predicting the future prices of assets.
3. The Heikin Ashi can be used alone or in conjunction with candlestick charts.
4. These charts can be very useful as they make it easier to read candlestick charts
and analyze market trends , without noise
Read 10 tweets
22 Nov
A thread on how to draw trendlines!

Confused between connecting wicks or bodies while drawing a trendline ?
Our main aim to draw trendline is to get maximum points of price on a line .
It can be through wicks tails or body and there is no fixed rule !

1/n ImageImageImageImage
Trendline as Trailing Stop Loss.
1. Trending stock Tends to pullback near Moving averages and trendlines .
2. This could be areas of fresh buying or you can shift your Stop loss to upside
3. As soon as trendline is broken then you can sell a stock and take reverse position

2/n ImageImageImage
Trendline as Trendreversal
1. You can Buy breakouts of trendline in a downtrend
once the trend is changed with emergence of HH HL structure
2. You can initiate long postion with Stop at previous swing low
3. Sometimes you may find retest on trendline also

3/n ImageImageImage
Read 6 tweets
18 Nov
Selecting Stocks For Intraday
A Thread For Weekend 🔖
How to Top Down Approach
Basic Stock Selection
@kuttrapali26 @rohanshah619
Manual Stock Filteration WHY?
1. Doing manually requires a lot of effort and time , so it can be tiring.
2. You will gain edge over finding stocks if you do it regularly
3. After your own analysis you gain confidence, that will help you in more successful trading
Picking Random Stocks Or FnO stocks Is a option
Midcaps and Smallcaps with High Liquidity will Provide high volatilityfor trades
Having stocks from all
sector and all sizes
Always have sectors in your intraday
That will increase your winning ratio
Read 14 tweets
17 Nov
Breakout Trading Strategy
How to Trade Breakouts Effectively?
How to avoid Big losses in BO Failures ?
How to Position Size?

@kuttrapali26 @AdityaTodmal
What is Breakout ?
A breakout is a stock price moving outside a defined support or resistance level with increased volume.
Always trade breakouts in uptrend for high win ratios
Source : Google
How to set targets
Always set targets based on resistance on charts
There shouldn’t be target blindly without any logic
Always have multiple targets based on time horizon
Short term targets are near resistances and long term targets are far resistance
Read 17 tweets
14 Nov
ULTIMATE GUIDE TO 21 and 200 Moving Average
A trend Following System That will Help You Improve Trading immensely.

@kuttrapali26 @AmitabhJha3
#stocks #StockMarket
Moving averages
1. Exponential Moving Average (EMA) is similar to Simple Moving Average (SMA), measuring trend direction over a period of time.
2. However, whereas SMA simply calculates an average of price data, EMA applies more weight to data that is more current
1. Calculates the Average Price of past 21 days
2. A stock above 21 ema is in strong momentum , which will give pullbacks to 21 ema again and again.
3. Stock above 21 ema should never be shorted so as to stay with the trend
Read 15 tweets

Did Thread Reader help you today?

Support us! We are indie developers!

This site is made by just two indie developers on a laptop doing marketing, support and development! Read more about the story.

Become a Premium Member ($3/month or $30/year) and get exclusive features!

Become Premium

Too expensive? Make a small donation by buying us coffee ($5) or help with server cost ($10)

Donate via Paypal

Thank you for your support!

Follow Us on Twitter!