The Heiken Ashi Smoothed indicator for MT5 is a trend-following indicator that combines the principles of Heiken Ashi candles with moving average smoothing.
By reducing short-term market fluctuations, it produces a cleaner representation of price direction, making trends easier to recognize.
The indicator displays bullish and bearish bars that change color as market sentiment shifts, allowing traders to identify trend continuation and potential reversals with less interference from market noise.
Why traders use the Heiken Ashi Smoothed Indicator
Traditional candlestick charts often produce frequent color changes during volatile or sideways markets, making it difficult to determine the true market direction.
The Heiken Ashi Smoothed Indicator addresses this by applying moving average calculations to the Heiken Ashi formula, resulting in smoother price signals.
Users use the indicator to remain in trending markets longer while avoiding premature exits caused by temporary price fluctuations.
Because the bars maintain the same color during strong trends, traders can quickly assess whether buyers or sellers remain in control.
The indicator is also useful as a trend confirmation tool alongside support and resistance, moving averages, or momentum indicators.
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Indicator Chart Setup
Once applied to the chart, the indicator plots smoothed bullish and bearish bars directly over the price action.
Green bars represent bullish market conditions, while orange bars indicate bearish momentum.
During sustained trends, consecutive bars usually maintain the same color, making directional moves much easier to follow.
When the color changes, traders receive an early indication that market momentum may be shifting.
Core Features
- Displays smoothed bullish and bearish trend bars.
- Applies moving average calculations to reduce market noise.
- Highlights potential trend reversals through color changes.
- Provides cleaner trend visualization than standard candlesticks.
- Suitable for multiple timeframes.
- Simple and lightweight indicator design.
Best for
- Trend-following strategies.
- Trend confirmation.
- Trade management.
- Reversal detection.
- Filtering false market signals.
Best Markets
- Markets with sustained directional movement where trends remain active for extended periods.
- Major Forex pairs during high-liquidity trading sessions.
- Precious metals when strong momentum develops after economic news.
- Equity indices that exhibit prolonged trending behavior.
- Cryptocurrency markets during established bullish or bearish phases.
Trading Styles
- Scalping on M1 and M5.
- Intraday trading on M15.
- Swing trading.
- Trend trading on H1 and H4.
How traders use it
Professional traders enter long positions when the indicator changes to green and continue holding the trade while bullish bars remain visible.
Short positions are commonly considered after the bars switch to orange, indicating increasing bearish momentum.
Rather than reacting to every small market fluctuation, traders often wait for a confirmed color change before adjusting their positions.
Combining the indicator with support and resistance or higher timeframe analysis can further improve trade selection.
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Indicator Settings
- Smoothing Period – Sets the calculation period used for the first moving average.
- Smoothing Method – Selects the moving average type used to smooth the Heiken Ashi values.
- Step Size – Adjusts the calculation step used by the indicator.
Important Notes
- The smoothing calculation reduces false signals but may react slightly later than traditional Heiken Ashi candles.
- The indicator performs best in trending market conditions.
- Color changes should be confirmed with price action before entering a trade.
- Using higher timeframes can help identify stronger market trends.
- The indicator works effectively with moving averages, support and resistance, and momentum indicators.
