What it is
Heikin Ashi is a Japanese charting technique that modifies standard candlestick data to create smoother trends.
How it works
It calculates average price data using specific formulas for open, high, low, and close, reducing market volatility.
Trading signals
- Bullish: Consecutive green candles without lower shadows indicate a strong uptrend.
- Bearish: Red candles without upper shadows suggest a powerful downtrend.
- Reversal: Small bodies with long shadows signal a potential change in market direction.
Basic settings
Most traders use default settings on TradingView, adjusting only the timeframe to suit their strategy. This indicator is for educational purposes only, not financial advice.
