Heiken-ashi candlesticks

Heiken-ashi candlesticks versus Japanese candlesticks


Heiken-ashi candlesticks are also called sometimes Heikin-ashi candlesticks.
Heiken-ashi candlesticks provide interpretation of market trends in a neat and descriptive way.


Unlike regular Japanese candles, Heiken-ashi don't show open, high, low and close. Instead they calculate values of each candlestick based on the dominant forces in the market. E.g. if bears (sellers) are clearly dominating, Heiken-ashi candlesticks will be bearish (red), even if a price bar closes higher than it opened.


These Heiken-ashi candles are a perfect tool for traders who like following trends to their very extend. Heikin-ashi Candles also looks much more simplified.


The rules of reading Heiken-ashi candlesticks


Sellers are dominating, strong downtrend



Buyers are dominating, strong uptrend



The trend got a bit weaker, watch out



With a change of a color of a Heikin-ashi candle - trend has changed


Heiken-ashi charts vs Japanese candlestick charts


A regular Japanese candlestick chart:


A chart with Heiken-ashi candlesticks:


The trends on Heiken-ashi charts have more distinguished and smoother look.


But this doesn't limits the use of Heiken-ashi candles in Forex.
Heiken-ashi candlesticks are good at suggesting trading and also trailing stops.


A trailing stop is placed at the bottom of a bullish Heiken-ashi candlestick in an uptrend and at the top of a bearish candlestick in a downtrend. A top is adjusted with each new fully formed candlestick.


Heiken-ashi candles are truly amazing candles to trade with!

Attached Files:

Posted By dalegreen : 31 August, 2020
Related Article

Trading with ADR involves the following signals:ADR rising and so does the price — healthy trend.ADR falling and so does the price — healthy trend.ADR reading diverge from the price — trend may changeADR crossing above 1.00 level — an uptrend has been established.ADR crossing below 1.00 level — a downtrend has been established.The further ADR moves from 1.00 level the more mature current trend is.What is Advance Decline Ratio in ForexAdvance Decline Ratio in Forex determines a momentum in the market by comparing advancing moments to declining ones.A/D Ratio was brought from stock trading, where traders were calculating the difference between stocks listed on the New York Stock Exchange that advanced in price minus those that declined.ADR indicator FormulaThe Formula for Advance Decline Ratio is:Advance/Decline Ratio = Number of advancing moments / Number of declining momentsIf ADR is less than 1 it means that there is more declining moments than advancing. If ADR is higher than 1 – advancing moments prevail.Advancing moments - the number of bars that closed above their opening price.Declining moments - the number of bars that closed below their opening price.How to use Advance Decline Ratio indicatorADR indicator is used widely as a overbought / oversold indicator where extremely high reading suggest the market being overbought while extremely low readings suggest an oversold market. However, the market can remain in overbought/-sold condition for an extensive period of time, therefore an additional confirmation signal from other tools is needed to confirm a move.Similar to all other momentum indicators the cross of 1.00 level on ADR indicator is an important signal of an established trend while the distance from this 1.00 level describes maturity of the trend.ADR chart exampleOn a Forex chart Advance Decline Ratio (ADR) indicator looks more like Advance Decline Line (ADL), but in contrast to ADL, ADR cannot be negative         How does ADR works on practiceLet’s take a down trending market. By looking at ADR traders can measure a strength and health of a current down trend. If ADR is low and decreasing during the sell off it indicates a good health of the downtrend. If, however, ADR moves higher while the trend continues down it suggest a deteriorating strength of a trend, in other words with each downside progress fewer participants take part in driving prices down. Eventually the market is going to change the direction and move higher following ADR indicator          

Step Kwan averages is an oscillator and channel indicator at the same time. It does not redraw, so the signals are rather clear. We recommend you to make a trade when indicator returns to the channel simultaneously with the color change. Nevertheless, you are free to choose your own trade approach.   Step Kwan averages usage example

This is one of the best support and resistance indicators available to traders. It can be used to trade forex, CFD stocks,…   Key Assumptions Bullish pressure: Sustained price break above resistance.Bearish pressure: Sustained price break below support.Flat market: Price trades between support and resistance.   Trading Signals BUY: Wait for a sustained break above key resistance levels.SELL: Wait for a sustained break below key support levels.   Configurable Indicator Options Contact_Step, Precision, Shift_Bars, Bars_Count   GBP/USD 30 Min Chart Example  

Post your comment