What is a Heikin-Ashi chart?
Heikin-Ashi (平均足, Japanese, literally “average bar”) candlesticks are an
chart. 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. New
should focus on the Japanese candlestick charts: