Heiken Ashi and Ichimoku Trend Signals with ATR-Based Exits

Summary

This strategy combines Heiken Ashi candles with the Ichimoku Kijun-sen baseline to identify directional signals. A long setup requires bullish Heiken Ashi conditions above the baseline, a rising baseline over a short lookback when the divergence filter is enabled, and price above the 200-period EMA when that trend filter is enabled. Short conditions mirror these checks. The code calculates take-profit distances using ATR from a higher timeframe and stop-loss distances using ATR from a lower timeframe, with multipliers set in the inputs.

The document presents the method as suited to trending markets and warns that sideways conditions can produce false signals. It gives BTC/USDT futures as the market and a daily backtest period spanning October 2024 to October 2025, but reports no results or performance evidence. The code’s divergence filter is a baseline slope check rather than a comparison of price and indicator swing points. The narrative recommends major currency pairs and post-news trends, which are not evaluated by the stated backtest; the timeframe inputs and published daily settings also merit checking before interpreting the multi-timeframe exits.

Key ideas

• Heiken Ashi candle direction and position relative to the Kijun-sen baseline drive entry conditions.
• Optional filters require alignment with the 200-period EMA and the direction of the baseline slope.
• ATR from separate higher and lower timeframes sets take-profit and stop-loss distances.
• The document warns that choppy markets can generate false signals and provides no reported performance results.
• The stated currency-pair use case is not tested in the published BTC/USDT futures settings.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.