About the Heiken Ashi Smoothed V2 Indicator
The Heiken Ashi Smoothed V2 indicator for MT4 is a trend-following tool that smooths standard Heiken Ashi candlesticks to reduce market noise.
It prints white and red candlesticks on the main chart, making it easier to identify the direction of the trend and potential trade entries.
White candlesticks indicate bullish momentum, while red candlesticks indicate bearish pressure.
The smoothing filter helps traders avoid false signals caused by minor market fluctuations, making it suitable for scalping, day trading, and swing trading.
This indicator works on any currency pair and timeframe and can be used alone or combined with other trend or momentum tools to enhance trading accuracy.
Free Download
Download the “Heiken Ashi Smoothed_v2.ex4” indicator for MT4
Key Features
- Displays smoothed Heiken Ashi candlesticks directly on the main chart
- White candlesticks indicate potential buy opportunities
- Red candlesticks indicate potential sell opportunities
- Reduces market noise with a smoothing filter
- Helps identify trend direction and reversals
Indicator Chart
The chart shows the Heiken Ashi Smoothed V2 indicator with red and white candlesticks.
White candlesticks highlight bullish trends, while red candlesticks highlight bearish trends.
Traders can use the smoothed candlestick patterns to time entries and exits more confidently.
Guide to Trade with Heiken Ashi Smoothed V2
Buy Rules
- Open a buy trade when white candlesticks start forming
- Confirm trend direction with higher timeframe analysis
- Close or reverse if red candlesticks appear
Sell Rules
- Open a sell trade when red candlesticks start forming
- Confirm trend direction with higher timeframe analysis
- Close or reverse if white candlesticks appear
Stop Loss
- Use ATR to set stops beyond normal noise
- Widen stop in volatile sessions
- Use fixed pips for short-term trades
- Move stop past nearby support or resistance
Take Profit
- Close trades when candlestick color changes
- Take partial profits at nearby support or resistance
- Use trailing stops during strong trends
Practical Tips
- Trade in the direction of the candlestick color
- Combine with other trend indicators for stronger signals
- Keep a short log to refine stop and take profit levels
Scalping Strategy: Heiken Ashi Smoothed V2 + Detrended Synthetic Price Histogram (MT4)
This scalping strategy combines the Heiken Ashi Smoothed V2 Indicator and the Detrended Synthetic Price Histogram Indicator to capture short-term market moves with high precision.
The Heiken Ashi Smoothed V2 provides clear buy and sell signals through candle colors, while the Detrended Synthetic Price Histogram confirms momentum.
This strategy works best on 1-minute to 5-minute charts and is ideal for active intraday scalpers.
Buy Entry Rules
- Wait for a white candle from the Heiken Ashi Smoothed V2, indicating a buy signal.
- Ensure the Detrended Synthetic Price Histogram shows green bars, confirming bullish momentum.
- Enter a buy trade at the close of the confirming candle.
- Set the stop loss just below the most recent swing low or a nearby support level.
- Set take profit at a 1:1.5 reward-to-risk ratio, or exit when the histogram turns orange.
Sell Entry Rules
- Wait for a red candle from the Heiken Ashi Smoothed V2, indicating a sell signal.
- Ensure the Detrended Synthetic Price Histogram shows orange bars, confirming bearish momentum.
- Enter a sell trade at the close of the confirming candle.
- Set the stop loss just above the most recent swing high or a nearby resistance level.
- Set take profit at a 1:1.5 reward-to-risk ratio, or exit when the histogram turns green.
Advantages
- A clear visual chart makes entries and exits easy to identify.
- Works on multiple currency pairs and short timeframes.
- Combines trend-following and momentum analysis for higher probability trades.
- Simple rules suitable for beginner and experienced traders.
- Helps maintain trading discipline with structured guidelines.
Drawbacks
- May lag slightly during extremely fast market spikes.
- False signals can occur in low-liquidity periods or during choppy price action.
- Requires quick decision-making and constant chart monitoring.
- Can underperform in highly volatile news events if not filtered properly.
Case Study 1
On the AUD/USD 1-minute chart, a white candle from the Heiken Ashi Smoothed V2 appeared, signaling a buy.
The Detrended Synthetic Price Histogram was green, confirming bullish momentum.
A buy trade was executed at 0.6710, with a stop loss at 0.6700 and a take profit at 0.6725.
The trade reached the take profit within 8 minutes, capturing 15 pips.
Case Study 2
On the USD/CAD 5-minute chart, a red candle from the Heiken Ashi Smoothed V2 indicated a sell.
The Detrended Synthetic Price Histogram showed orange bars, confirming bearish momentum.
A sell trade was entered at 1.3510, with a stop loss at 1.3525 and a take profit at 1.3495.
The trade hit the take profit in 12 minutes, resulting in a 15-pip gain.
Strategy Tips
- Prioritize trading during high-liquidity sessions, such as London and New York overlaps, to ensure better price stability and more reliable signals.
- Focus on currency pairs with tight spreads and low slippage, like EUR/USD, USD/JPY, AUD/USD, and USD/CAD, to maximize scalping profits.
- Combine the strategy with short-term support and resistance levels or pivot points to refine entry and exit points.
- Consider using a trailing stop to lock in profits when momentum is strong, extending gains beyond the initial take profit.
- Use higher timeframes (5-min or 15-min charts) to confirm the overall trend direction, even when scalping on 1-min charts.
- Track your trades in a journal to identify which currency pairs and timeframes perform best with this strategy.
- Be disciplined with exits; even if the histogram or candle changes color briefly, avoid second-guessing unless confirmed by your rules.
- Take breaks between scalping sessions to avoid fatigue, which can lead to overtrading or impulsive decisions.
Download Now
Download the “Heiken Ashi Smoothed_v2.ex4” indicator for Metatrader 4
FAQ
How does the smoothing work?
The indicator averages recent candlestick data to reduce small price fluctuations, making trends easier to follow.
Can it detect trend reversals?
Yes. A switch from white to red or red to white candlesticks often signals a potential trend reversal, especially when confirmed with other tools.
Does it work on volatile markets?
Yes. The smoothed calculation reduces false signals in choppy markets, but you may want wider stops in very high volatility conditions.
What settings can I adjust?
You can change the smoothing period to make candlesticks more or less responsive, depending on your trading style and timeframe.
Is it suitable for scalping and longer trades?
Yes. Short-term traders benefit from lower timeframe signals, while swing traders can use higher timeframe smoothed candlesticks for trend confirmation.
Summary
The Heiken Ashi Smoothed V2 indicator for MT4 simplifies trend trading by using smoothed red and white candlesticks to highlight market direction.
It reduces noise and helps traders identify high-probability entries and exits.
Ideal for scalping, day trading, or swing trading, it works on all currency pairs and timeframes.
When combined with other trend or momentum tools, it provides a reliable method to follow trends and improve trading confidence.
