The SMOOTHED HEIKEN ASHI COBRA System (How To Make Money From Forex & Stocks)

If You can Master this “Smoothed Heiken Ashi COBRA” system, you’ll be able to make so much more money from Trading.

In this tutorial, I will guide you through a simple and effective trading method that can work well for both forex and stock markets. This strategy uses three tools: the 50-period Smoothed Heiken Ashi, the (5,3,3) Stochastic Oscillator, Support-Resistance Zones & Trend Lines.

Let’s start with the basics. The 50-period Smoothed Heiken Ashi helps us see the main trend. When prices are above this line, it’s a good time to think about buying. If the price goes below this line, it might be a good time to think about selling.

Once again, if you can master this “Smoothed Heiken Ashi COBRA System“, you can potentially earn more money from trading. This is because all the tools we use can read price action, market trends, market psychology, and market momentum all at once.

Therefore, it’s important to follow the step-by-step instructions, as there might be a few slightly complicated things, especially when it comes to Stochastic oscillator trading rules and the concept of support-resistance.

 

• Download “TraderVersity-SHACOBRASYSTEM” (Zip/RAR File).
• Copy mq4 and ex4 files to your Metatrader Directory …/experts/indicators/
• Copy the “TraderVersity-SHACOBRASYSTEM.tpl” file (template) to your Metatrader Directory …/templates /
• Start or restart your Metatrader Client.
• Select Chart and Timeframe where you want to test your forex system.
• Right-click on your trading chart and hover on “Template”.
• Move right to select “TraderVersity-SHACOBRASYSTEM” trading  system and strategy
• You will see “TraderVersity-SHACOBRASYSTEM” is available on your Chart

 

Here, we can easily see that the price is moving above the 50-period Smoothed Heiken Ashi. This shows a positive, bullish trend for now.

So, our focus shifts to finding opportunities to BUY.

We do this by using the Stochastic indicator when it’s in the “Oversold” condition and looking for moments when the Support-Resistance Zones and Trend Lines break in a bullish way.

As we can notice, the stochastic oscillator is under the level of 20. This indicates that during this upward trend, the price goes down temporarily until it becomes oversold. This often suggests the market could return to its bullish trend.

As we can see, the stochastic oscillator goes back above the 20 level. With this signal, traders might think about opening a BUY position on the next candle. However, in this strategy, we still require confirmation from market psychology, which comes from a trend line breakout.

On the chart, we can very clearly observe a short-term downward trend line that’s later broken by a strong bullish candle.

This break in the trend line is a reliable sign that the market is continuing its bullish direction.

So, for the next candle, we could consider entering a BUY position. To be cautious, we place a stop loss below the lowest point of the Smoothed Heiken Ashi candle. As you can observe, the price then confidently maintains its bullish trend, and this continues up to the present moment.

On this chart, it’s easy to see that the price is currently moving below the 50-period Smoothed Heiken Ashi. This points to a downward trend. So, we’re focusing on finding opportunities to SELL.

We do this by combining the Stochastic indicator when it’s showing an “Overbought” condition and looking for points where Support-Resistance Zones and Trend Lines break in a bearish direction.

As we can see, the Stochastic oscillator is above the 80 level. This means that even though the trend is down, the price temporarily goes up and becoming overbought. This often suggests the market could go back to its downward trend.

But then, the Stochastic oscillator falls back under 80. This could be a signal for traders to think about opening a SELL position on the next candle.

On the chart, we can clearly see a short-term trend line that was going up, but it’s then broken by a big price drop.

This breaking of the trend line is a valid sign that the market is still on its downward path.

In this case, all the trading rules have been met perfectly. So, on the next candle, we should enter the market by placing a SELL trade.

To be safe, we set a stop loss above the highest point of the Smoothed Heiken Ashi candle. As you can see, the price then continues with confidence in the downward trend.

From the two real-life examples we discussed earlier, it’s clear that this strategy is very strong because it involves price action, market trends, market psychology, and market momentum all together.

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