Heikin Ashi Candles
We recommend using this structure of candle for more accuracy when using FrogAlgo Premium
By lowering part of the market noise, Heikin Ashi candlesticks create a smoother appearance, which makes it simpler to discern trends and reversals. Heikin-Ashi has a propensity for the candles to remain red during downtrends and green during uptrends. The formula for Heikin Ashi computation is based on averages over two periods.
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
Last modified 8mo ago