Heikin Ashi Histogram indicator for MT4

Definition

The Heikin Ashi histogram indicator is an MT4 indicator that shows the Heikin Ashi colors in the form of a histogram in a separate window.

The main advantage of using Heikin Ashi in trading is that it simplifies trading with just two red and green colors. When red candles form, it means there is a bearish trend in the market; when green candles form, there is a bullish trend.

How does the Heikin Ashi histogram indicator work?

This MT4 indicator consists of histogram bars and a moving average line. This indicator’s primary function is to show the heikin ashi and candlestick chart on a single screen.

The Heikin Ashi chart is easy to use, but a trader cannot wholly rely on this chart in trading because this chart reveals very little information. At the same time, a candlestick chart gives a lot of information regarding traders’ activity in the form of candlestick patterns and trends.

The benefit of using the Heikin Ashi chart is that it becomes easy to take decisions. For example, you open a buy trade using a bullish pin bar candlestick. Then you cannot decide whether to close a trade or not after gaining some profit. But here, you can use the Heikin Ashi chart and keep the trade open until the chart turns red.

That’s why the Heikin Ashi histogram indicator provides the following information:

• Price trend
• Buy or sell signals
• Market volatility
• Moving average value

I will highly recommend using this indicator in trading.

Heikin Ashi histogram signals

Open a buy trade

When bullish candlestick patterns form on the chart and the color of the histogram indicator is also green, open a buy trade.

Open a sell trade

When a bearish candlestick pattern form with the red color of the histogram indicator, then open a sell trade.

The bottom line

You can use the Heikin Ashi histogram indicator to determine the market trend and adjust the profit levels. It will also help in trading psychology.