What is a Heikin-Ashi chart?
Heikin-Ashi (平均足, Japanese, literally “average bar”) candlesticks are anchart. It represents the in a similar way to , which are the most popular .
The candlesticks are defined in the following way:
- Open = (open of previous bar + close of previous bar)/2
- Close = (open + high + low + close)/4
- High = maximum of high, open, or close (whichever is highest)
- Low = minimum of low, open, or close (whichever is lowest)
Depending on the settings of the, Heikin-Ashi charts are used instead of another chart type, or plotted as an in a separate window, or used as an overlay over a regular chart.
We recommend that you use Heikin-Ashi charts with caution. Newshould focus on the Japanese candlestick charts: