Heikin-Ashi

What is Heikin-Ashi?

Heikin-Ashi is a type of candlestick charting technique used in technical analysis to identify trends and predict future prices. It is similar to traditional candlestick charts, but it uses a different method for calculating the candlestick body.

Unlike traditional candlestick charts, Heikin-Ashi candlestick chart uses a modified formula to calculate the open and close prices of each candlestick period. This formula takes the average of the open, high, low and close prices of the previous period, which then plotted as Heikin-Ashi candlestick chart. The Heikin-Ashi candlestick chart can be used to identify trends, support and resistance levels, and potential buy and sell signals.

Heiken Ashi candlestick are particularly useful in identifying trends, as they filter out the noise and volatility of the markets, giving a clearer picture of the trend direction. Also, it can be used to confirm trends identified by other indicators and methods. It can be used on any time frame and financial markets, including stocks, forex, and commodities.