Simon Sez IV per Simon’s Werld®
re: Simon Sez IV two (2) simple rules apply to HA Smoothie.
Heikin-Ashi Candlesticks are an offshoot from Japanese candlesticks.
Heikin-Ashi Candlesticks are based on price data from the current open-high-low-close, the current Heikin-Ashi values, and the prior Heikin-Ashi values.
Buying and selling with the GREEN and RED bars.
The intention was written to trade only with Heikin-Ashi charts because it smoothes out the regular candle stix mess in transit. As you will soon see, it is easy on the eyes.
Now we have to listen to what Simon Sez to do with just two (2) simple rules.
a. BUY on the First GREEN Bar after the Last RED bar. No waiting.
b. SELL on the First RED Bar after the Last GREEN bar. No waiting.
This is funny I have an index card that is written in RED and GREEN ink and blue ink for the remaining werds not to forget what Simon Sez to do.
using COST chart as an example. A stock to own for a life time. Hot dogs are still a Buck fitty.
we are in the RED area and waiting for the last RED bar.
The last GREEN bar was on 11/30/22 then the following morning a RED bar appeared. Simon Sez man No waiting around and SELL it providing it does not head north as a possible head fake.
And we wait and wait and wait then on the last RED bar that appeared on 1/6/23
Simon Sez, to BUY the first GREEN bar after the last RED per Rule a.
And again we wait and wait or Go Fishin or hit some little white pellets on the big GREEN carpet.
Stir - Rinse - and Repeat when the last GREEN / RED Bars appear.
How to build the HA Smoothie template with Barchart.
Here’s how to set up the chart template. Go to ‘Settings’. Then at SYMBOL, then “Bar Type”, Pick “Colored OHLC Bars” format you want and then turn it off. Next, go to ‘Studies’ and select ‘HA Smoothed’. Lastly, save the chart as a ‘Template’. (Free accounts are allowed five templates.)
Pretty obvious how to trade such a chart, right? and the same ‘Wait One’ rule would apply.
Well, I named my new chart HA Smoothie.