Heikin-Ashi candlesticks

Type

Other indicator

Short introduction

Heikin-Ashi candlesticks calculate candlesticks based on the open and close prices of the last period and the open, high, low and close prices of the current period. The resulting candlesticks filter out disturbances and facilitate the recognition of existing trends.

Formula/calculation

The Heikin-Ashi Close ("HA Close") is the average of the open, high, low and close of the current period:

HA Close = (Open(0) + High(0) + Low(0) + Close(0)) / 4

The Heikin-Ashi Open ("HA Open") is the average of the Heikin-Ashi Open and Heikin-Ashi Close of the last period:

HA Open = (HA Open(-1) + HA Close(-1)) / 2

The Heikin-Ashi High ("HA High") is the maximum of 3 values: Current High, Heikin-Ashi Open or Current Heikin-Ashi Close:

HA High = Maximum from High(0), HA Open(0) or HA Close(0)

The Heikin-Ashi Low ("HA Low") is the minimum of 3 values: Current Low, Heikin-Ashi Open or current Heikin-Ashi Close:

HA Low = minimum from Low(0), HA Open(0) or HA Close(0)

Interpretation

Heikin-Ashi candlesticks use averages for smoothing, making them a better indicator of a general trend compared to "normal" candlesticks.

Example