If you're diving into the world of trading with MetaTrader 5, the Heikin Ashi SepWnd indicator is one tool you won’t want to overlook. When set to a period of 1, it mirrors the standard Heikin Ashi indicator that comes out of the box with MetaTrader. However, if you bump that period up to more than 1, you’ll notice that while the instrument becomes less sensitive to minor pullbacks, it may cause a slight delay in spotting trend reversals. This delay is a common trait seen in many trend-following tools.
Let’s take a look at how the standard Heikin Ashi stacks up against the Heikin Ashi SepWnd indicator when set to a period of 2:
Recommendations:
- Stick to a period of no more than 5 for the Heikin Ashi indicator to maintain its effectiveness.
- This indicator not only helps you gauge the trend direction but can also adjust your stop loss based on the open price of the previous Heikin Ashi candlestick (when set to a period of 1-3).