Daily, Weekly, and Monthly Heikin Ashi Trend Alignment
Summary
This strategy uses Heikin Ashi candles from daily, weekly, and monthly timeframes to seek aligned trends. It opens a long position when all three timeframes are bullish and a short position when all are bearish. After entry, a change in any timeframe’s direction triggers a close. The approach uses multi-timeframe agreement as a filter and relies on smoothed candles to make directional movement easier to identify.
The document provides BTC futures backtest settings covering a short period, but no performance results, benchmark, or costs. The source exposes switches for enabling long and short trades, with short trading disabled by default. The strategy has no explicit stop-loss mechanism, and its own discussion notes that the strict alignment requirement may delay or miss entries while Heikin Ashi smoothing can add lag. It suggests testing additional timeframes and adding dynamic stops, price-volume confirmation, or market-structure filters; these are proposals rather than evaluated improvements.
Key ideas
- A long position requires bullish Heikin Ashi direction across daily, weekly, and monthly timeframes.
- A short position requires bearish direction across all three timeframes.
- A reversal in any timeframe triggers closure of the corresponding position.
- Multi-timeframe agreement filters signals but can delay entries or miss opportunities.
- The supplied settings show short trading disabled by default, and the strategy has no explicit stop loss.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.