In this article, We learn about "Heikin Ashi".Let's Go!
"Heikin Ashi" is a charting technique used to display prices that, at first glance, resembles the traditional Japanese candlestick chart .
The difference lies in the method candlesticks are calculated and drawn used on the chart.
They use an average range to calculate the points of a candle, which smoothes the chart, providing a clearer view of market trends.
Heiken Ashi also differ from traditional Japanese candlesticks in that they take into account the previous day's open and close prices when opening, thus eliminating any gaps between bars on the chart.
They are used to help filter out market noise.
Heikin Ashi charts are drawn as candlestick charts, where down days are represented by red bars and up days are represented by green bars.
How to trade average foot
Hollow candles represent an uptrend, larger hollow bars represent a stronger uptrend.
Solid candles represent a downtrend, larger solid bars represent a stronger downtrend.
How to calculate average foot
Opening price = (opening price of previous bar + closing price of previous bar)/2 High Price = The highest price, opening price or closing price (whichever is the highest) Low Price = the lowest price, opening price or closing price (whichever is the lowest) Closing price = (opening price + highest price + lowest price + closing price)/4
If you want to learn more foreign exchange trading knowledge, please click: Trading Education.
