How I use it:
- Entry on a normal M1 chart, based on price action.
- Once the trade is 1R in profit, I add an M1 Heikin Ashi chart next to it.
- I hold as long as HA candles stay the same colour with no lower wick (for longs).
- Exit on the first opposite-colour HA candle, or at my maximum target.
The trade-off to measure is simple: compared with a fixed target, the HA exit should raise the average winner and lower the win rate. Run both exits on the same entries for 50 or more trades and compare expectancy, not either number alone.
Important: never use HA prices for stop placement. Stops go on the real chart.
Does anyone else use HA only for trade management? Or other smoothed charts like Renko for the same purpose?