You are a scalper, day trader, or trade low-volatility pairs like EUR/GBP in a range. Also avoid if you don’t understand the underlying mechanics — blindly following smoothed indicators without knowing their lag characteristics is dangerous.
The RSI should be falling and crossing below the 50-midline or exiting the overbought (70) zone. heiken ashi rsi
Regular RSI divergences are common but often fail. With HA-RSI, divergences occur less frequently, so when they do appear — e.g., price makes a lower low but HA-RSI makes a higher low — it tends to be a stronger reversal signal. The smoothing removes minor divergences that would otherwise mislead. You are a scalper, day trader, or trade
Enter at the start of the second consecutive red Heiken Ashi candle. Risk Management and Exit Signals You are a scalper