Throughlineby Timo

    Throughline

    About this playbook

    Throughline — the Heikin-Ashi turn inside a trend.

    Smoothed candles

    Heikin-Ashi candles are built from averaged prices rather than raw ones. The effect is a chart where a trend appears as an unbroken run of one colour and the noise that breaks up a normal candlestick chart simply disappears.

    That makes the colour flip a genuinely meaningful event rather than the everyday occurrence it is on a raw chart.

    The flip that is a pullback

    A flip from red to green is the signal — but only while price holds above its long-term average. That condition is what makes the difference between a dip ending and a trend ending, and it is the whole reason this is built as a continuation rather than a reversal.

    The cooldown matters more here than almost anywhere: colour flips CLUSTER in choppy conditions, and that clustering — not the signal itself — was the drawdown. Spacing the entries was what made this one work.

    The settings that matter

    Cooldown Bars is the dial that defines it — how long it waits after a trade before another flip can fire. It is the difference between a clean run of trades and a cluster of them in the same chop.

    Trend Period sets the long-term average that decides whether a flip is a pullback or a reversal, and the ATR stop with a 3R target shapes the trade.

    Prefer to stay in control? Let Timo AI track the session, highlight live setups, and you execute the trades yourself at the click of a button. Want it fully hands-off? Turn on the auto playbook and Timo will handle entries, exits, and risk management for you.

    Disclaimer

    The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by Timo. Past performance is not indicative of future results.