Heikin-Ashi Technique

Categories: Technical Analysis,

A method of candlestick chart modification that eliminates irregularities and helps identify strong trends. No gaps will appear using this approach. Each candlestick is calculated by a formula to create an average for the open and close for the day. Because the formula includes data from the previous day, candle range can also change. The high or low for the candlestick may or may not be the actual maximum or minimum for that day. Interpretation of these charts should be done in combination with traditional candlesticks.