It has been almost one year ago that I wrote my first and second article about trading with Heikin Ashi candles. I wrote this when I joined The Birb Nest as a test-contributor back then, and since then I’m pretty sure I’ve inspired a lot of members to trade based on these pretty alternative Japanese candles.
One of the reasons about trading with HA candles is that it’s easy to follow the trend on almost any timeframe and besides that, it gives us a clear trailing stop, which was covered in the earlier article.
Now after almost a year, we (SignalFI and myself ) have created an indicator for TradingView, that clearly shows the trailing stop loss levels on your chart for multiple time frames. And if that’s not enough, I’ve been adding a few more elements in the indicator where you can base your trailing stop on. We’ll be covering all these in this article about the h0dl2100k HA Trailer indicator.
First of all, let me introduce all the features inside the indicator that will help you with trailing your stops, so you’ll stay in the trend as long as possible.
- Trailing stop loss labels for multiple timeframes for long and short trades
- A panel that includes all MTF levels
- A long and short EMA, to put in your favourite EMA’s (200/50)
- Williams Fractals (Bill Williams)
- Ichimoku Baseline
Trailing Stop Loss Labels for MTF
For the ones that read the first two articles, this feature does exactly what I described. It’s one of the easiest concepts of trailing your stop on your preferred timeframe. The indicator will create horizontals on your chart, with a label on it, that will give you the exact price of the last Heikin Ashi candle low. If you are trailing your stop loss on the prior and closed HA candle low, make sure your stop is below the given price.
Now one of the great things is that you able to have multiple stop loss levels from different timeframes on your chart. So when you have a chart open with a timeframe from 4 hours, it will also display the stop loss levels based on for example the 12 hour, or the daily timeframe. Take a look at the image below to spot the stop loss levels on the right side.
Available timeframes for trailing at the moment of writing are:
- 4 hour
- 12 hour
- 1 day
- 3 days
- 1 week
And the great thing about this is, that the trailing stops are not only for your long positions. Now you are also able to trail your shorts! Let’s take a look at the image below.
The trailing stop labels for long or short, and per timeframe, can be enabled in the first tab of the settings. In the second tab you might want to change the color profile.
Now in the first tab there is also the possibility to enable the so called Panel Dashboard. On the right side of your chart will appear a black panel with the values of all possible stops. It will look like the image below.
Trailing the EMA’s
Now if you are more of a swingtrader, and you’re comfortable with some wider stops, then you’ll probably know that utilizing the 50 and 200 EMA cross is a great sign for bulls or bears. When the 50 crosses the 200 the upside, this a very strong signal for bulls, and if you managed to get in close to the one of these lines, you are able to use either those lines as a running stop loss.
Getting in on a bullish cross, and getting out on a bearish cross of the EMA’s is still one of the most simplistic strategies, but very effective! In the mean time you are able to buy / rebuy on dips towards the 50 and 200 EMA.
Your are able to use the EMA’s as a stop loss, while moving your stop with every one or few candles. In the images below you’ll see the use of the EMA’s, how they change color when price is above or below, and how you could create a horizontal that trails together with the EMA.
Trailing with Williams Fractals
In this article I will not go deep in to the details of Williams Fractals, but if you are looking to swingtrade, and don’t want to trail your position tight with the Heikin Ashi candlesticks, you might want to start reading in to Williams Fractals.
Williams Fractals are the blue and red triangles on my chart below, and they appear above a candle when price has made an high, with two candles on each side that are lower. These are called bull fractals.
The opposite are the bear fractals. They appear below the candle and are set when price makes a low, with 2 candles on each side that have a higher low.
The reason why swingtraders love these Williams Fractals as a stop, is that in contradiction to trailing Heikin Ashi candle stops, they give room for price to make an higher low. If you want to learn more about this, just send me Direct Message on Twitter or in Discord.
Trailing with Ichimoku Baseline
Ichimoku traders will know already, but the Ichimoku Baseline or Kijun-Sen creates a line above or below price, that maybe reminds of a more edgy MA or EMA, but is calculated in a much different way.
The calculation of the Ichimoku Baseline is a Donchian Channel formula of the average of the lowest and highest values of the last 26 candles.
Traders could use this Ichi Baseline not only to trail their stops, but also look if price is bullish or bearish territory. When price starts trending up, it will likely go above the baseline and the color flips blue. In strong uptrend, price will stay above the Ichi Baseline. In strong downtrends it is the other way around. The Ichi Baseline is one of your strongest trend following elements in this h0dl2100k indicator! Bounces on the baseline are great for adding to your positions.
Like with the EMA’s you’re able to enable this on your chart in the first tab of the settings, while in the second tab you might want to change the color or enable the price line so you have a better view of the trailing stop.
Other elements of the indicators
- MACD cross signal
- Ichimoku Kumo / laggin span
- Doji or HA Indecision candle detector
To finish this article, I’ll just mention that I’m a big fan of the MACD, especially on the higher timeframes. There is nothing fancy on the MACD, but traders shouldn’t under estimate the power of a bullish or bearish MACD cross. Thats’ why we’ve added it to the indicator. If you like to see how MACD moves, and also use it for divergences, you might want to take a look at our modified MACD indicator.
Some traders who are following me for a while now, do know that I’m a big fan of Ichimoku Kino Hyo. That’s why we included the Kumo as well, so that you’re able to see if price is trading below or above it and let you set your bias.
Last but not least, the Doji detector. For the experienced traders easy to disable, but if you’re starting with Heikin Ashi you might want to leave it on to spot for indecision candles.
First hands on this indicator?
I’m very proud that all my favourite indicators are now bundles in one indicator. This is really how I’ve trade and how I have developed as a trader.
This is also exactly what i preach on Twitter or in The Birb Nest. This indicator has it all for me, and with this you should be able to make great steps forward in your winrate! It doesn’t not only let’s you manage your stops better, it also is a great trending indictor.
The h0dl2100k indicator has now been added to the SignalFi shop and is been prices around $50. Subscribers on my Twitch channel will get coupon for minus 50%.