As we generally know that in the PAMM Investment System, traders are allowed to manage money they receive from the investors. The main goal is, of course, making a constant profit by minimizing the risk and obstacles. Within this investment system, traders don’t have to put their own money and facing the risk of losing it while the trading is on progress. All they have to do is doing a smart trading by using the proper tools which support their daily activity.
In doing their activity, traders must be able to predict the direction of market. It’s not easy since the market is always fluctuating. Different traders have different strategies or methods to read the market before making decision. But for most traders, the easiest way to do this is by doing technical analysis of the price chart.
Heiken-Ashi is one of technical indicator which came after the candlestick chart. Even though it has a similarity with the candlestick chart, but different in the method of measurement and plotting of the candles. It’s also faster, easier to read and understand, and of course easy to trade with.
The Heiken-Ashi chart is slower than the candlestick chart and it shows the lagging signals. That’s why Heiken-Ashi is more suitable for a trading which has a high volatility such as GBP or JPY because it prevents s from doing a premature decision.
Below is the list of the Heiken-Ashi signals :
1. Bullish Candles
When the market is Bullish, the Heiken-Ashi candles are fat and have long upper shadows without any lower shadows.
2. Bearish Candles
In the Bearish market, the Heiken-Ashi candles are fat with long lower shadows and small or even without upper shadows.
3. Reversal Candles
The reversal candles in the Heiken-Ashi look like the Doji candlesticks, where the bodies of the candles are so skinny and almost unseen, but have long upper and lower shadows.
Simply spoken, Heiken-Ashi charts will be suitable for traders who are full of patience and carefulness. When Heiken-Ashi is used in conjunction with another lagging indicator such as MACD, or Stochastic, it helps traders filter out many of the false trade setups and take the best and strongest ones. The supporting indicators will give verification to the trade setups, while the candlesticks show a real-time market condition. By doing this, traders are hoping that the maximum and constant profit is just a little step to go.
Enjoy PAMM Investments System !
Don’t forget to read this important article for PAMM trader
1. How to become a PAMM Trader
2. Understanding your Forex Trader Level as PAMM Trader