1. http://bigbullandbigbear.blogspot.com
"How to Control Emotions in Trading". There is an interesting trading system. Going to dig in.
Summary: The setup is used to search for the end of a trend if possible. The setup is using the 8EMA and 21EMA and the Heikin Ashi bars. For the Heikin Ashi bars, a red bar means that the verage closing price of the prior 6 bars is in hte lower 50% of its range, indicating a bearish bias. The opposite is true of the green bars. What's nice about this indicator is it takes into context a group of bars -- not just a single bar. A group shows a trend change, a rotation from a bullish bias to bearish bias and vice versa. A single can be an anomaly.
Heikin Ashi System: (from Investopedia)
1. A candle with a small body and long upper and lower shadows indicates a change in the trend. If you are brave soul, you may want to add or sell shares at this point. Personally, I'm inclined to wait for a confirmation bar in this situation.
2. Hollow candles lacking lower shadows (hollow candles indicate an uptrend, and solid candles indicate a downtrend) indicate a strong uptrend. Obviously, and a strong uptrend you'll want to maintain your position.
3. The exact opposite of point number 2, filled candles with no higher shadows indicate a strong downward move and most traders will stay in their trade. One quick point though, I am hesitant to enter into an already well-established trend. This is referred to as piling onto a trade and you risk piling on late in that trend movement and sustaining a loss.
4. Filled candles indicate a downtrend.
5. Hollow candles indicate an uptrend.
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