0:02 hey guys welcome back to another episode
0:04 in this video we will be going through
0:06 our haikanasi trading strategy in depth
0:08 and how we use it in combination with
0:09 price action
0:11 high kanasi candlesticks are great
0:13 because they smooth the price action
0:16 as a result much of the noise shown in
0:17 traditional japanese candlesticks
0:20 is eliminated with high kanasi charting
0:22 and it helps make the trade entry and
0:24 exit decision simpler
0:26 if you want more videos more often
0:27 please smash the like button
0:30 subscribe and turn on the notifications
0:32 bell so that you know exactly when new
0:34 content is released
0:36 the very important point before we start
0:38 everything we discuss in this video can
0:40 be used for currency trading
0:42 stock trading and crypto because price
0:44 action stays relatively consistent
0:46 across different assets
0:48 so we're going to go very in depth in
0:57 are you confused with not knowing
0:58 exactly how or when
1:00 to enter into a trade with so many
1:02 different candlestick patterns
1:04 traders can get paralyzed by over
1:05 analysis on whether a certain
1:07 candlestick is an entry or not
1:09 and have you gotten into a trade where
1:11 it was going in your favor
1:13 but you got out too early it's
1:14 frustrating to get out of a position
1:16 only to see the trade go further in the
1:24 let's face it as a trader we have many things
1:25 things
1:27 to analyze at any given time if you take
1:29 too long to decide whether it's time to
1:31 enter into a trade because of your
1:32 complicated entry rules
1:34 it might mean a missed opportunity for
1:36 you and if you exit your position too
1:38 early then it could affect your
1:40 profitability in the long run
1:42 but what if you had a simple way of
1:44 knowing exactly when to get in and out
1:46 of your trade without any complicated analysis
1:47 analysis
1:48 then you want to consider using the high
1:50 kanasi bars to time your entries and exits
1:51 exits
1:53 in this video i will share with you a
1:55 simple haikanasi strategy to simplify
1:57 your entries and exits so you will know
2:00 exactly when it's time to enter or exit
2:02 a trade
2:04 and now what is the haikanasi technique
2:07 the haikanasi technique is a japanese
2:08 candlestick based
2:09 technical trading tool that uses
2:11 candlestick charts to represent
2:14 and visualize market price data it is
2:16 used to identify market trend signals
2:18 and forecast price movements the
2:21 haikanasi method uses average price data
2:24 that helps to filter out market noise
2:26 the absence of market noise results in a
2:28 clear illustration of market trends
2:29 and direction which helps determine
2:31 potential price movements
2:33 the trading technique assists traders in
2:35 identifying when they should hold on to
2:36 a trade
2:38 pause a trade or identify if a reversal
2:40 is about to occur
2:42 the haikanasi trading technique was
2:43 developed by munich
2:46 hama in the 1700s the technique shares
2:47 some characteristics with the
2:49 traditional candlestick charts used in trading
2:50 trading
2:51 but differs in how the values for
2:53 candlesticks are computed
2:55 in japan the word heiken means average
2:56 for balance
2:59 and the wordasi means bar per foot hence
3:02 high kanasi means average bar resonating
3:03 with the trading technique
3:05 which uses the average price of the security
3:06 security
3:08 the difference between hikanasi and
3:10 traditional candlesticks
3:11 the main difference between the
3:13 traditional candlestick chart and the
3:15 high kanasi chart is that the latter
3:17 uses a modified formula based on two
3:20 period moving averages instead of open
3:23 high low and close prices hence
3:25 the technique generates a smoother chart
3:26 making it easier to spot trends and reversals
3:27 reversals
3:30 the high kanasi charts also obscure gaps
3:32 and some price data
3:34 the left chart is using traditional
3:36 candlestick bars
3:37 and the right chart it's using high
3:39 kanasi bars
3:41 you can see that with the high canassi
3:44 bars it's much more smoother
3:46 this is why some traders prefer to use
3:48 the haikanasi candles since it reduces
3:49 the noise on the chart
3:51 and allows them to analyze trends more clearly
3:52 clearly
3:54 what makes haikanasi different from a
3:56 traditional japanese candlestick
3:58 chart is how the price is displayed in
4:00 terms of the open and the close
4:02 if you look closely at the heiken aussie
4:04 chart you'll notice that each of the
4:06 haikanasi candlesticks start from the
4:08 middle of the candlestick before it and
4:09 not from the level
4:10 where the previous candlestick had
4:14 closed high kanasi candlesticks act this
4:20 if you're interested here's the
4:23 calculation high kanasi close equals
4:24 average of open
4:29 high low and close
4:31 high can i see open equals midpoint of
4:35 previous high kanasi bar
4:37 high kanasi high equals highest of high
4:43 close and open
4:45 high can i see low equals lowest of low
4:53 by the way please don't bother to
4:55 memorize this formula
4:56 and don't even think about trying to
4:59 understand why it's calculated this way
5:01 it will not help you be more profitable
5:04 or help you become profitable at all
5:05 just understand that it's meant to help
5:08 you identify trends better in the market
5:11 also don't mistake the haikanasi bars as
5:13 a trading system because it's not
5:14 if you go long whenever you see a
5:17 bullish bar or go short whenever you see
5:17 a bearish bar
5:20 then you will go broke very quickly like
5:21 the candlestick bars
5:23 it's just giving you information on the market
5:28 haikanasi price action patterns with
5:29 candlestick bars
5:31 you have many different types of price
5:33 action patterns
5:35 you have the doji gravestone doji and
5:37 the dragonfly doji
5:39 you have the pin bars you have the
5:41 engulfing candlesticks
5:43 and the list goes on and on there are
5:45 literally tons and tons of candlestick patterns
5:47 patterns
5:49 but with the high kanasi bars i've
5:50 categorized them to just three main
5:53 types of price action patterns
5:56 first bullish bars with the bullish high
5:57 kanasi bars
5:59 you will notice that there's only a wick
6:01 at the top of the bar but there's no
6:02 wick at the bottom
6:04 as long as this is an up bar with no
6:06 wick at the bottom we consider this a
6:17 second bearish heikenosi bars
6:19 the bearish hikanasi bars are simply the
6:22 opposite of bullish high kanasi bars
6:24 they have a wick at the bottom but not
6:25 wick at the top
6:28 as long as this is a down bar with no
6:28 wick at the top
6:39 third indecision heiko nasi bars to
6:41 simplify the haikanasi bars i've
6:43 categorized all bars
6:44 that have wicks at the top and bottom of
6:46 the bars as an indecision hike in aussie bar
6:48 bar
6:50 so regardless of whether the bar color
6:51 is bullish or bearish
6:53 as long as there are wicks on both sides
6:55 we will consider this an indecision high
7:06 why use high kanasi bars now that you
7:08 know what are high kanasi bars and you
7:10 know the three different types of
7:11 haikanasi price action patterns
7:13 the question you might be asking right
7:16 now is why use the high kanasi bars for
7:17 our trading
7:19 and the answer is because it helps make
7:21 the trade entry and exit decision simpler
7:23 simpler
7:25 and now how to enter into a trade using
7:28 high kanasi bars
7:30 while it might be tempting to go long
7:31 whenever you see a bullish hike in
7:32 aussie bar
7:35 or go short whenever you see a bearish
7:36 high kanasi bar
7:39 please resist your urge to do so
7:41 i know there are people out there
7:43 teaching to do this but i know you're
7:44 smarter than that
7:46 so don't do it to have an edge trading
7:48 the markets you need to have certain
7:50 criteria to be met before entering into
7:52 a trade
7:55 buying rules or long position criteria
7:56 number one
7:58 the higher time frame must be in an
8:01 uptrend what this means is that the high
8:03 time frame has to be making higher highs
8:04 and higher lows
8:06 if you're trading the one hour chart
8:08 then the higher time frame would be the
8:09 four-hour chart
8:11 and if you're trading the hour chart
8:13 then the higher time frame would be the
8:15 daily chart
8:17 i don't like to trade any time frame
8:18 lower than the one hour chart
8:21 because not only is it tiring to watch
8:22 but the commissions and spread will eat
8:24 away a significant amount of your edge
8:26 at lower time frames
8:28 but that is not to say that it's not
8:30 profitable trading lower time frames
8:32 it's just more difficult because your
8:34 spread and commission would be a bigger
8:36 percentage of your trade parameters than
8:38 in the higher time frames
8:41 criteria number two the 10 exponential
8:43 moving average is above the 30
8:44 exponential moving average
8:47 i use the 10 email and 30 ema to
8:50 determine the momentum of the trend
8:52 criteria number three the time frame
8:54 you're trading on must have both
8:56 criteria one and two as well
8:58 once there are these three criteria in
9:00 place i will look to go long
9:02 when the price bounces off either of the
9:04 exponential moving averages
9:05 and the first bullish high kanasi is
9:08 formed at a higher low like this
9:10 then place stop loss below the low of
9:20 criteria for a short trade now that we
9:22 know the criteria for a long
9:24 trade the criteria to get into a short
9:30 criteria number one the higher time
9:32 frame must be in a downtrend
9:34 this is denoted by price forming lower
9:41 criteria number two the 10 exponential
9:42 moving average is below the 30
9:44 exponential moving average
9:46 this is straightforward and you should
9:48 have no difficulties identifying this on
9:50 your chart by now
9:53 criteria number three the time frame
9:54 you're trading on must have both
9:56 criteria one and two as well
9:58 once you have all three criteria i will
10:00 look to go short
10:01 when price bounces off either of the
10:03 exponential moving averages
10:05 and the first bearish high kanasi is
10:16 how to exit a trade using high kanasi bars
10:17 bars
10:19 as for exit because this is a trend
10:22 trading play we want to exit only once
10:23 the price has formed an opposite hike in
10:25 aussie bar
10:27 so for long trades we only want to exit
10:29 when a bearish high kanasi bar is formed
10:31 and for short trades we only want to
10:33 exit when a bullish high kanasi bar is formed
10:34 formed
10:36 as you can tell it becomes so much
10:38 simpler to determine when to exit
10:41 now sometimes if you are in a long trade
10:43 you will get faked out of your position
10:46 because a bearish high kanasi bar only
10:47 to see the next bar become a bullish
10:49 hike in aussie bar
10:51 or vice versa if you're in a short trade
10:53 but that's fine
10:55 there's no way you're going to catch
10:57 every single bit of every trend there is
10:59 ultimately if you are profitable from
11:01 your trades as a whole over a series of trades
11:01 trades
11:09 trading examples all right
11:11 enough theory here's a trade example to
11:13 show you exactly how to enter an exit
11:15 into a short trade
11:17 in this chart you can see that the
11:19 market formed a lower high
11:21 and bounced off the 30 exponential
11:22 moving average
11:24 once you see that happen the next step
11:26 is to wait for a bearish high kanasi bar
11:27 to form
11:29 when it's formed go short at the close
11:30 of the bar
11:32 from there the market dropped pretty
11:35 quickly and indecision heiken asi bars
11:36 started to form
11:38 this is not a good reason to get out
11:40 because it could just be consolidating
11:42 before the price goes down again
11:44 however in this case the price did not
11:46 go down further
11:48 instead a bullish hikanasi bar was
11:50 formed and that means to get out of the
11:53 trade at the close of the bar
11:55 here's a trade example of how to get
11:58 into a long trade
12:00 in this chart you can see on the left
12:02 hand side that the price has spiked up
12:03 pretty quickly
12:05 and then started consolidating
12:07 consolidation in an uptrend is a good
12:09 sign because this could mean that price
12:10 can go up further
12:12 and the market did bounce off the 10
12:13 exponential moving average
12:16 and formed the first bullish hykenasi
12:18 bar go long at the close of the bar
12:20 price did go up further before an
12:22 indecision high kanasi bar is formed
12:24 immediately after the first indecision
12:26 high canassi bar is formed
12:28 the next bar after that is a bearish
12:29 haikanasi bar
12:31 that's the signal to exit out of the
12:33 trade and fortunately for us
12:35 price did eventually go much lower after
12:37 we exited the trade
12:39 however not all trades are going to be
12:40 like this
12:42 as i've said this a number of times
12:44 already it doesn't matter
12:45 if you do not catch the whole movement
12:48 of the trend it's impossible to do so
12:50 what you can only do is take whatever
12:52 you can based on your trading
12:53 system and in the long run that will
12:56 lead you to profitability
12:58 here are other examples of haikanasi
13:06 trading strategy [Music]
13:18 [Music] so
13:20 so [Music]
13:32 [Music] do
13:34 do [Music]
13:46 [Music] do
14:03 so [Music]
14:17 so [Music]
14:32 [Music] [Applause]
14:32 [Applause] [Music]
14:56 [Music] so
14:58 so [Music]
15:40 high kanasi bars are great because they
15:41 smooth the price action
15:43 as a result much of the noise shown in
15:45 traditional japanese candlesticks
15:48 is eliminated with high kanasi charting
15:49 and it helps make the trade entry and
15:51 exit decision simpler
15:54 as always if you learn something new or
15:56 if you want more videos more often
15:58 make sure you subscribe click the
16:00 notification bell and leave us a like to
16:01 show your support
16:08 see you next time [Music]
16:22 do you
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