Heikin Ashi candlesticks overview
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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