The Heiken Ashi candlestick indicator for Metatrader 4 (MT4) transforms the activity chart into popular Heiken Ashi candlesticks.
The indicator appears in the main MT4 chart as white and red Heiken candlesticks.
Buy & Sell Trade Example
- Open a buy trade as soon as the first white Heiken candlestick appears on the chart.
- Open a first trade as soon as the first red Heiken candlestick appears on the chart.
The Heiken Ashi candlestick can be used for both entry and exit signals or mixed together with your own favorite trading strategy for improved performance.
For scalping and day trading purposes, the indicator tends to deliver the best results during the London and U.S. trading sessions.
The indicator works equally well on all assets (Forex, CFD stocks, Indices, Cryptocurrencies, Commodities,..) and shows promising results if used correctly.
Free Download
Download the “Heiken Ashi.mq4” indicator for MT4
Indicator Chart (EUR/USD M5)
The example chart below displays the Heiken Ashi mt4 indicator in action on the trading chart.
Trading Tips:
Utilize your own favorite trade entry, stop loss and take profit method to trade with the Heiken Ashi Forex indicator.
As always, trade in agreement with the overall trend and practice on a demo account first until you fully understand this indicator.
Please note that even the best trading indicator cannot yield a 100% win rate over long periods.
Indicator Specifications & Inputs:
Trading Platform: Developed for Metatrader 4 (MT4)
Currency pairs: Works for any pair
Time frames: Works for any time frame
Input Parameters: Variable (inputs tab), color settings & style
Indicator type: Candlestick
Repaint? No.
Heiken Ashi + Flat Trend RSI MT4 Day Trading Strategy
Introduction
This strategy combines the smooth trend visualization of the Heiken Ashi Candlestick Indicator (MT4) with the trend confirmation from the Flat Trend RSI Indicator (MT4).
Heiken Ashi candles simplify price action: white candles signal bullish momentum while red candles indicate bearish pressure.
The Flat Trend RSI shows the overall trend: a blue histogram represents a bullish trend and a red histogram represents a bearish trend.
This setup is designed for short-term trading on M1, M5, M15, M30, and H1 charts.
It is ideal for intraday traders who want quick, precise entries with a clear trend filter.
Buy Entry Rules
- The Flat Trend RSI histogram must be blue, indicating a bullish trend.
- A white Heiken Ashi candle closes, signaling a buy opportunity.
- Enter the trade at the close of the white candle.
- Stop loss: place below the most recent swing low or the low of the previous Heiken Ashi candle.
- Take profit: initial target 1.5× risk. Move stop to breakeven after half the target is reached.
- Trail the stop behind the lows of subsequent white candles to maximize profits.
Sell Entry Rules
- The Flat Trend RSI histogram must be red, indicating a bearish trend.
- A red Heiken Ashi candle closes, signaling a sell opportunity.
- Enter the trade at the close of the red candle.
- Stop loss: place above the most recent swing high or above the high of the previous Heiken Ashi candle.
- Take profit: initial target 1.5× risk. Move stop to breakeven after half the target is reached.
- Trail the stop above the highs of subsequent red candles for extended moves.
Advantages
- Heiken Ashi candles smooth price action, reducing noise on fast time frames.
- Flat Trend RSI provides a clear trend filter to avoid countertrend trades.
- Simple visual cues make the strategy easy to follow for M1 to H1 charts.
- Works well for quick intraday trades across multiple currency pairs.
Drawbacks
- Lag in Heiken Ashi candles may cause slightly delayed entries.
- Choppy or sideways markets can produce false signals.
- Requires strict discipline to follow the trend filter and stop loss rules.
- Stop losses may be triggered frequently on very short time frames (M1–M5) if the market is volatile.
Example Case Study 1 — AUD/USD M5 (Bullish)
On the M5 AUD/USD chart, the Flat Trend RSI histogram turns blue.
A white Heiken Ashi candle closes above the previous candle.
Entry is taken at the close of the white candle.
Stop loss is placed below the low of the previous candle.
Price moves steadily upward, hitting the first target of 1.5× risk within 25 minutes.
Trailing stops behind subsequent white candles capture additional profit as the trend continues.
Example Case Study 2 — USD/JPY M15 (Bearish)
USD/JPY on the M15 chart shows the Flat Trend RSI histogram turning red.
A red Heiken Ashi candle closes below the previous candle, confirming a sell signal.
Entry is taken at the candle close.
Stop loss is set above the previous swing high. Price trends downward steadily, reaching the initial target in 40 minutes.
Trailing stops above the highs of following red candles capture additional profit before the trend reverses.
Strategy Tips
- Always trade in the direction of the Flat Trend RSI histogram to avoid countertrend losses.
- Do not enter trades when the histogram changes color frequently, indicating indecision.
- Combine with higher timeframe trend analysis for stronger setups.
- Use small position sizes while testing on M1 and M5 charts to manage drawdowns.
- Monitor economic news releases that may cause sudden volatility and false signals.
- Keep a trading journal to track Heiken Ashi candle patterns that consistently work on your preferred currency pairs.
