Heikin-Ashi Chandelier Signals with Regular-Candle Execution
Summary
This strategy calculates directional signals from Heikin-Ashi candles while placing entries and stop orders on the chart’s regular candles. A Chandelier-style stop, based on Heikin-Ashi highs or lows and ATR, sets the direction. A signal is filtered by a zero-lag smoothed moving average: longs require the Heikin-Ashi close above it, while shorts require the close below it.
On a qualifying reversal, the strategy enters long or short and sets the initial stop to the low or high of the signal candle on regular candles. It closes a position when the Heikin-Ashi close crosses the smoothed average in the opposite direction. The source sets the Chandelier ATR period to 1, its multiplier to 2.0, and the average length to 50. The document describes the rules but reports no backtest outcomes; performance may depend on instrument, timeframe, execution assumptions, and the unusually short default ATR period.
Key ideas
- Heikin-Ashi candles determine Chandelier direction changes and moving-average conditions.
- A zero-lag smoothed moving average filters long and short reversal signals.
- Entries and signal-candle stops use regular chart candles.
- Positions can also close when Heikin-Ashi price crosses the average against the trade.
- The published description gives rules and defaults but no performance results.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.