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Jim Dean

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Joined: 3/13/2006
Location: L'ville, GA

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Subject : RE: OP and Heikin-Ashi
Posted : 11/23/2014 11:09 AM
Post #23161 - In reply to #23160

Here's an easy way to look at it. Think of the HA bars as the same thing as a moving average. You would not expect to trade off the moving average price itself but rather in response to the way the moving average is acting. Similarly with HA bars: the trades necessarily are based on the underlying price and not upon the construct that the HA bar represents.

You could choose to use the moving average price point as the threshold that a stop market or limit order is set by. But the actual trade depends upon the underlying bar crossing over that arbitrary threshold. Thus the HA bars give you an indication of what you might want to do, but the accomplishment of that is dependent upon the underlying bar.
Deleting message 23161 : RE: OP and Heikin-Ashi


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