This article teaches a specific Heikin Ashi trend-riding and reversal strategy using simple price-action rules: spot a doji at the extreme, then enter only when a strong Heikin Ashi candle confirms reversal with “open = low” (for long) or “open = high” (for short), and ride the trend until the opposite signal appears.
Concept of the Strategy
In the article we will explains that Heikin Ashi charts are used because they remove noise such as small gaps and random candles, giving a cleaner view of trends. On normal candlestick charts, frequent alternation between green and red candles can scare traders out of positions, but on Heikin Ashi, the same move appears as a smoother sequence of red or green candles. The idea is to use this smoothed trend plus doji candles to catch reversals early and then ride the trend for many days (for swing) or hours (for intraday).
He also stresses that this is a trend-riding strategy, not a guarantee of 100% accuracy: stop-losses will hit sometimes, and realistic expectations (50–70% accuracy) are necessary.
Heikin Ashi Chart Setup and Timeframes
The strategy can be used on almost any charting platform that supports Heikin Ashi, such as TradingView, Moneycontrol, and broker platforms like Trade Tiger.
For swing trading (investment style):
Use daily timeframe with Heikin Ashi candles.
For intraday trading:
Use 15‑minute timeframe with the same rules.
He shows how to switch from normal candlesticks to Heikin Ashi on TradingView and Moneycontrol by using the chart type menu and selecting “Heikin Ashi”. He also emphasizes that the strategy rules stay the same; only the timeframe changes between swing and intraday.
Only Three Types of Key Candles
On Heikin Ashi, he simplifies candle reading into three important types:
Big green candles (strong bullish movement).
Big red candles (strong bearish movement).
Doji candles: small body, with long upper and lower wicks.
He explicitly ignores complex names like hammer, shooting star, etc., and builds the entire method only on doji + confirmation candle.
Long (Buy) Setup: Step-by-Step Rules
He calls this a trend-riding strategy for long positions on daily chart for swing, or 15‑minute for intraday.
Condition 1 – Find a Doji at the Bottom
First, the stock should have fallen for some time: continuous red Heikin Ashi candles.
After the fall, at the bottom, you must see a doji candle:
Small body.
Long upper and lower wicks.
This doji at the bottom is your first clue that the downtrend is losing strength.
Condition 2 – “Open = Low” Bullish Candle After Doji
Look at the candle immediately after the bottom doji.
For a valid long setup, that candle must have:
Open equal to Low (Open = Low).
Practically, this means there is no lower wick; price opened at the low and moved up.
He clearly says: “Open equal to Low means the open price is the same as the low price, and there should be no wick below.”
Entry Rule for Long Trade
Once conditions 1 and 2 are satisfied, entry is not taken immediately on the Open = Low candle.
You buy only when the high of that Open = Low candle is broken.
So the buy trigger is:
Price moves above the high of the confirmation candle (the one with Open = Low).
This avoids jumping in too early and ensures the market has actually started moving in the bullish direction.
Stop-Loss for Long Trade
The stop-loss (SL) is placed at the low of the doji candle that formed at the bottom.
He explicitly defines: “Doji candle ka low hi hamara SL hoga.”
This uses the reversal area itself as risk reference.
Target and Exit for Long Trade
You ride the trend as long as Heikin Ashi candles keep forming bullishly.
Exit condition: When a red candle appears near the top after a rally, you book profit there.
In the Reliance example, he shows how a stop of about ₹55 gave a move of around ₹190, resulting in a risk–reward of approximately 3.5:1.
He also mentions that as the stock moves up, you can trail the stop-loss gradually to protect profits, not keep SL fixed.
Short (Sell) Setup: Mirror Rules on the Top
The strategy is symmetric for short selling in a downtrend after an uptrend.
Condition 1 – Doji at the Top
First, there should be a sequence of green Heikin Ashi candles, indicating an uptrend.
At the top of this move, you need a doji candle again (small body, long wicks), showing indecision after a rally.
Condition 2 – “Open = High” Bearish Candle After Doji
Look at the candle after that top doji.
For a valid short setup, that candle must have:
Open equal to High (Open = High).
That means no upper wick; price opened at the high and moved down.
He explains that for shorts, you do not use Open = Low; you strictly require Open = High after the top doji.
Entry Rule for Short Trade
You do not short immediately on the Open = High candle.
You short when the low of that Open = High candle is broken.
This confirms that selling pressure is actually taking over.
Stop-Loss and Target for Short
Stop-loss is placed above the high of the doji candle at the top.
Target is downward, and you continue to hold until a clear opposite (green) signal or until your rules for trailing stop are triggered.
He demonstrates several chart examples where doji at the top, followed by Open = High, led to good down moves.
What Not to Trade: Avoid Half Signals
He repeatedly warns against trading when only one condition is satisfied.
Examples he shows:
A top doji forms, but the next candle does not have Open = High →
Only Condition 1 met, Condition 2 failed → No trade.
A bottom doji forms, but the following candle does not have Open = Low →
Again, only one condition met → skip the setup.
He also mentions places where many dojis appear but the Open = High/Low confirmation comes only later; in those cases, you wait until the correct candle forms and then apply the same high/low breakout rule.
Intraday Application (15-Minute Nifty/Bank Nifty, Stocks)
After teaching the daily timeframe, he switches the same chart to 15‑minute timeframe to show intraday examples.
Rules remain identical:
Doji at top or bottom.
Then Open = Low (for long) or Open = High (for short).
Entry on breakout of the confirmation candle’s high or low.
He shows intraday cases where:
At the top, a doji forms, then Open = High; short entry at break of low, SL above high.
At the bottom, a doji plus Open = Low forms; long entry at break of high, SL below low.
He clearly acknowledges that stop-losses will sometimes hit on intraday too, and gives an example where a long trade went against the trader and hit SL.
Using Free Screener: TopStockResearch
To find candidates quickly, he adds a screener-based workflow using TopStockResearch.
How to Access the Screener
Go to Google → search “Top Stock Research”.
On the site, go to Candles → Bullish Screeners.
Under Bullish Screeners, select “Bullish Heikin Ashi patterns” and specifically “Bullish Initiation”.
This screener lists stocks where a bullish Heikin Ashi initiation has just occurred, which typically aligns with his bottom-doji + Open = Low pattern starting to form.
He opens several of these stocks (e.g., Aadhar Housing Finance, Adani group stocks, Axis Bank, Apollo Hospitals) and switches their charts to Heikin Ashi to verify:
A doji has formed near the bottom.
After that, he can see a candle with Open = Low, meaning the strategy is getting initiated.
He then also shows “Bullish Continuation” screener, which helps find stocks where trend is already in progress: doji + Open = Low already triggered and price is continuing upwards.
Practical Notes, Risk, and Psychology
Amar Bhatia repeatedly emphasizes several practical points:
No strategy is 100%: accuracy may be 50–70%, and SL will be hit at times.
Stock market is not easy money; you must learn and practice strategies systematically.
You can apply the method to any liquid stock, Nifty, Bank Nifty, etc., in swing or intraday, as long as your platform supports Heikin Ashi.
Screener is only a starting point; you must still visually confirm doji + Open = Low/High on Heikin Ashi charts.
He also clarifies that brokers, platforms, and screeners shown (Trade Tiger, TopStockResearch, etc.) are used only for illustration and are not paid promotions.
Strategy Summary (Article-Style Recap)
Use Heikin Ashi charts to clean up noise and see trends clearly, on daily (swing) or 15‑minute (intraday) timeframes.
For long trades:
Identify a downtrend followed by a doji at the bottom.
Next candle must be Open = Low (no lower wick).
Enter buy when price breaks above this candle’s high.
Stop-loss at the low of the doji.
Ride the uptrend and book profit when a red Heikin Ashi candle appears at the top, trailing SL as price moves.
For short trades:
Identify an uptrend followed by a doji at the top.
Next candle must be Open = High (no upper wick).
Enter short when price breaks below this candle’s low.
Stop-loss at the high of the doji.
Ride the downtrend and cover when a green opposite signal appears, again using trailing stops.
Use TopStockResearch’s Bullish Heikin Ashi screeners (Initiation and Continuation) to quickly discover stocks where these patterns are forming, then confirm them on Heikin Ashi charts.
Reviewed by Admin team
on
May 26, 2026
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