The Forex market is unlike any other market. Because it is open twenty-four hours a day, it provides a unique opportunity for people to start trading who may not be full-time traders. They may work a full-time job or trade in other markets and decide to trade in the foreign exchange market for some extra cash.

The challenge for new traders with no experience in the Forex market is learning how to read the signals and understand the charts to recognize a change in trends. Some currency pairs are even more volatile than others and will show an extreme number of fluctuations throughout the day.

Heiken Ashi trading is one method that will make trading the Forex market easier. It eliminates much of the confusion that you will find with other charting methods. You have to learn to read the candles with Heikin Ashi, but once you understand the chart, you will find trading much simpler.

Heiken Ashi trading takes the averages of the candles rather than tracking every single fluctuation. This prevents you from following false signals when a trade has a momentary fluctuation due to increased volatility.

When you look at the Heken Ashi chart, it appears much smoother than other charts. This is because it is tracking the overall trend and following the strength of the market rather than responding to individual changes. It will give you a better indication of where the trend is headed and if it is about to switch directions.

It is very simple to follow Heiken Ashi candles. The black candles indicate a downtrend while the white candles represent an uptrend. If the candles are long, it shows that the trend is strong. If you see lower shadows developing on the white candles, it shows that the uptrend is getting weaker. Upper shadows on the black candles indicate that the downtrend is weakening.

When the body of the candles is short and the shadows are long, it can indicate that a change in the trend is about to occur. This isnt always a solid indication so its best to check with other indicators. If they have the same analysis, you can make your trade based on that information.

When you see the upward trend, you will allow your trades to continue. With a strong upward trend, you may even want to add to your position. The same can be said for downward trends in that as they gain strength, you will want to sell or add to your short holdings.

When your Heiken Ashi candles are short with long shadows, you will probably want to wait for confirmation before you take any action.

The Heiken Ashi trader will find that it is much easier to read forecasts and follow information to gain a profit. You will improve on your trades by using Heiken Ashi along with other indicators that match your trading style. Using Heiken Ashi trading will make the Forex market much easier to master and you will be more successful.