The Heiken Ashi Oscillator MT4 indicator applies a moving average to smoothen the Heiken Ashi candles. Additionally, the indicator uses a moving average and identifies the up and downtrend of the forex market.
Features of Heiken Ashi Oscillator MT4 Indicator
The indicator plots histogram bars on a separate oscillator window. First, it uses the median prices of the open and close of the previous Heiken Ashi candles to calculate an oscillator value. Based on the values it plots the histogram bars with positive values above and negative values below the zero level. Then it applies a moving average upon the histogram bars.
The blue histogram bars indicate a bullish price trend, while the red bars show a bearish market. The teal line is the moving average. A simple trading strategy is buying once the blue histogram bars appear above the zero line and selling on a red bar below the zero line.
Though this indicator works well in all chart time frames, Heiken Ashi candles perform better in short and long-term. So, it is recommended to apply this to trade intraday and short and long-term.
Benefits of Heiken Ashi Oscillator MT4 Indicator
Heiken Ashi candles are designed to provide a smooth price and trend direction. Many traders use them in forex technical analysis and as a trend filter in forex trading strategies. However, this indicator uses the high and low to calculate a median price. So, the prices are further smooth in this process.
Additionally, the moving averages on these values make them smoother. So, the resulting trend helps forex traders to identify the trend direction in a much better way.
Another benefit is its ability to identify the trend direction at a glance using the red and blue histogram bars. While the length of the bars shows the trend strength.
Indicator Settings Description
AvPeriod: Period for moving average calculation.
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