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HA-Low, HA-High indicators are indicators created for trading on Heikin-Ashi charts.
Therefore, they are determined by Heikin-Ashi's Open, Close, and RSI values.
If the RSI indicator value is above 70 when the candle starts to rise and then falls on the Heikin-Ashi chart, the HA-High indicator is generated.
If the RSI indicator value is below 30 when the candle starts to rise and then falls on the Heikin-Ashi chart, the HA-Low indicator is generated.
Therefore, rather than judging the rise and fall with your eyes, you can judge the rise and fall transitions with more specific criteria.
If you look at a regular chart, you can see that there are many rise and fall transition points, unlike the Heikin-Ashi chart.
The Heikin-Ashi chart has the effect of reducing fakes.
Therefore, it has a higher reliability than judging with a regular chart.
The biggest disadvantage of the Heikin-Ashi chart is that it is difficult to know the exact values of the Open and Close values.
Therefore, the HA-Low, HA-High indicators are used to accurately and quickly identify the Open and Close values by indicating the rising and falling transition points of the Heikin-Ashi chart on a general chart.
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The Heikin-Ashi chart uses the median.
Therefore, the HA-Low indicator corresponds to the median when it leaves the low range, and the HA-High indicator corresponds to the median when it leaves the high range.
If the HA-Low indicator is generated and then receives support, there is a high possibility that an upward trend will begin, and if the HA-High indicator is generated and then receives resistance, there is a high possibility that a downward trend will begin.
Therefore, the HA-Low, HA-High indicators are used in basic trading strategies.
However, since the HA-Low and HA-High indicators are intermediate values, if the HA-Low indicator resists and falls, there is a possibility of a stepwise decline, and if the HA-High indicator supports and rises, there is a possibility of a stepwise rise.
Therefore, to compensate for this, the DOM (60) and DOM (-60) indicators were used.
The DOM indicator is an indicator that comprehensively evaluates the DMI + OBV + MOMENTUM indicators.
When these indicators are above 60 or below -60, the DOM (60) and DOM (-60) indicators are created.
In other words, the DOM (60) indicator corresponds to the overbought range and indicates the end of the high point.
The DOM (-60) indicator corresponds to the oversold range and indicates the end of the low point.
Therefore, when the HA-Low indicator resists and falls, the actual stepwise decline is likely to start when it falls below DOM (-60).
On the other hand, when the HA-High indicator is supported and rises, the actual step-up trend is likely to start by rising above DOM (60).
This compensates for the shortcomings of the HA-Low and HA-High indicators.
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There is no way to be 100% sure in all transactions.
Therefore, if the motivation to start a transaction is clear, it is only worth challenging the transaction.
Finding that motivation and deciding how to start a transaction that suits your investment style is the trading strategy and the core of trading.
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Thank you for reading to the end.
I wish you successful trading.
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