Heikin Ashi candlesticks gives a smoother appearance by reducing some of the market noise, hence making it easier to spots trends and reversals. There is a tendency with Heikin-Ashi for the candles to stay red during a downtrend and green during an uptrend
Heikin-Ashi calculation uses a formula based on two-period averages
How to read Heikin-Ashi candles
Green candles indicate an uptrend and in case with no lower shadows the move can be assumed a strong uptrend
Red candles indicate a downtrend and if with no higher shadows a strong downtrend
Candles with a small body surrounded by upper and lower shadows indicate a potential trend change or trend pause
the Heikin-Ashi candlesticks do not show the exact open and close prices for a particular time period because they are averaged hence who need to exploit quick price moves may find Heikin-Ashi charts are not responsive enough to be useful
For whom interested with Higher Time Frame Candle presentation on lower time frame chart including Heikin-Ashi candles are invited to check HTF Candles
Heikin-Ashi calculation uses a formula based on two-period averages
How to read Heikin-Ashi candles
Green candles indicate an uptrend and in case with no lower shadows the move can be assumed a strong uptrend
Red candles indicate a downtrend and if with no higher shadows a strong downtrend
Candles with a small body surrounded by upper and lower shadows indicate a potential trend change or trend pause
the Heikin-Ashi candlesticks do not show the exact open and close prices for a particular time period because they are averaged hence who need to exploit quick price moves may find Heikin-Ashi charts are not responsive enough to be useful
For whom interested with Higher Time Frame Candle presentation on lower time frame chart including Heikin-Ashi candles are invited to check HTF Candles
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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 TradingView. Read more in the Terms of Use.
Related publications
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 TradingView. Read more in the Terms of Use.