The New Heiken Ashi indicator for MT5 is a Forex market tool that superimposes the price chart with synthetic candlesticks. The indicator is an innovative candlestick charting tool that accurately identifies the market trend direction of financial instruments.
The indicator changes color to depict uptrend candles (bullish) and downtrend candles (bearish) as the market swings from one zone to another. Hence, it makes it easy for even a beginner trader to identify the market trend and trade in that direction.
Furthermore, the indicator can also be used to identify potential trend reversal zones of the price. For example, a trend may reverse when the indicator prints an opposite candle at a support or resistance zone.
Features of the New Heiken Ashi Indicator for MT5
Unlike the traditional Japanese candlesticks displayed using the close, open, high, and low price values, the Heiken-Ashi indicator uses modified parameters, which smooth out the price fluctuations to display the market trend more clearly.
Furthermore, the indicator uses color to depict the trend direction like the regular Japanese candlesticks. Therefore, bullish candles are represented with dodger blue, while bearish trend candles are in red.
Benefits of Using the Indicator
- Trend Identification: The indicator helps traders identify the market trend with more accuracy than traditional Japanese candlesticks. This can help strengthen technical analysis and enhance better decision-making.
- Reduce False Signals: The indicator smooths out the price, which helps reduce false signals, thereby making it a reliable charting tool that enhances accuracy in identifying market trends.
- Simplicity: Finally, the indicator’s charts are easy to read and interpret, even for beginners, enhancing trend analysis.
Indicator Settings Description
The indicator doesn’t come with customizable settings. However, traders can change the color used in displaying the candlesticks.
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