Heiken Ashi Binary Strategy - A Simple Method for Profitable Binary Trading
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Binary trading requires accurate forecasting of short-term price movements. One of the most reliable tools for identifying strong trends in binary options is the Heiken Ashi candle strategy. Unlike classic Japanese candlesticks, Heiken Ashi smooths out market noise and helps traders make clearer, trend-based decisions.
In this article, we’ll explain how to use Heiken Ashi candles effectively as a binary strategy, what signals to look for, and how to filter out false entries.
What Is Heiken Ashi?
Heiken Ashi (translated as "average bar") is a charting technique that modifies the standard candlestick to create smoother price movement. It factors in data from both the current and previous candles, which helps remove market noise and makes trend direction easier to recognize.
Heiken Ashi candles are handy in binary trading, where quick and confident decisions based on trend direction are crucial.
The primary concept of this binary strategy is to open trades in the direction of a clear, confirmed trend, as indicated by Heiken Ashi candles.
Recommended timeframes: 1-minute or 5-minute
Expiration: 1 to 3 candles, depending on market volatility
This method is designed to improve consistency by following strong directional momentum.
Entry Rules
Buy Signal (Call Option)
A Call option is opened when the following conditions are met:
Two or more consecutive green or white Heiken Ashi candles are formed
These candles have no lower shadows (wicks), indicating strong upward movement
The market is trending up steadily, with no significant pullbacks
Enter the trade at the beginning of the next candle, only if the trend continues
Sell Signal (Put Option)
A Put option is opened when these conditions appear:
Two or more consecutive red or black Heiken Ashi candles appear
These candles have no upper shadows, confirming strong downward movement
The trend is stable and showing no signs of reversal
Open the trade at the start of the next candle in the same direction
Filters and Confirmations
To improve the quality of trade entries and reduce the number of false signals, use the following filters:
Moving average (EMA 20 or EMA 50): Only trade in the direction of the price relative to the moving average
Avoid trading during news events: High-impact economic news can cause volatility that invalidates signals
Ignore mixed signals: Do not trade when Heiken Ashi candles have long wicks on both sides — this is a sign of uncertainty and market indecision
Video Tutorial
For a step-by-step walkthrough of this Heiken Ashi binary strategy in action, including real chart examples and live setups, you can watch our full video guide.
The video explains:
How to set up your chart with Heiken Ashi candles
How to identify clean signals
How to combine this approach with risk management
Real trades using this strategy with different assets
Advantages of the Heiken Ashi Strategy
Easy to understand and implement
Reduces market noise and filters out weak signals
Can be used together with other indicators like moving averages or RSI
Disadvantages
Signals may come with a slight delay due to candle smoothing
Not effective during sideways or choppy market conditions
May require additional filters such as volume or macroeconomic context
Conclusion
The Heiken Ashi binary strategy offers a reliable and structured approach to binary options trading. Its trend-based nature makes it easier to follow momentum and avoid random price movements. This strategy is suitable for both beginners and experienced traders looking to improve accuracy and consistency.
Remember that proper risk management and practice are essential. Always test strategies on a demo account before using real funds.
Start Trading Now
You can apply this strategy on a trusted binary trading platform like Pocket Option.
Register here: vfxAlert.com