Heiken Ashi Forex Candlestick Patterns: Simple guidelines for pips made simply (Heiken Ashi Price Action Book 1) by Heiken Ashi Day Trader

Author:Heiken Ashi Day Trader [Day Trader, Heiken Ashi]
Language: eng
Format: azw3
Published: 2016-12-15T16:00:00+00:00

What is Heiken Ashi

Heiken Ashi candlesticks are another clever invention from the minds of Japanese traders. Translated from Japanese, Heiken Ashi means ‘average bar’.

They are the result of applying some average math directly to the candlestick structure.

One main goal of Heiken Ashi candlesticks is to eliminate noise on the chart. This is achieved through the way the Heiken Ashi charts are built through the equation.

The formula for their construction is designed to creates a smoothing effect – filtering out the irrelevant moves, while maintaining the display of the dominant price action.

Heiken Ashi candlesticks requires data from the previous HA candle, meaning they essentially build off one another. It is this chaining effect that gives a really unique view into the market.

The classic candlestick we’re all used to has a high, low, open, and close price. These figures are taken directly from the raw price action.

Heiken Ashi candles have the same 4 data points, but they each have some unique math behind them – which is important to understand if you’re going to use them.

High Price = highest price out of the current candle’s high, open, or close price

Low Price = lowest price out of the current candles’s low, open, or close price

Close Price = (open + high + low + close) / 4

Open price = previous candle (open + close) / 2

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