Heikin-ashi Candle – Trend पहचाने आसानी से

What is Heikin-Ashi Candles?

Heikin-Ashi candlesticks are analogus to Japanese candlesticks, and is price charting developed in Japan by Munehisa Homma in the 1700s.

The main benefit of HA charts is that it filters unnecessary noise and provides a visual representation of the trend of the underlying security. For new traders trend is easier to see, and for experienced traders the HA charts provides a Trend following system and when used in combination Candlesticks provides idle platform for spotting Trend reversals.

How Heikin-Ashi Candles look

Below chart shows Heikin-Ashi Candles. Each candle is different from the Candlesticks and involves calculation mentioned below. There is slight delay in the price provided by the HA as it involves calculation based on the previous candle.

Calculation for Heikin-Ashi Candles

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

HA High = Maximum of High, Open, or Close

Low = Minimum of Low, Open, or Close

Open = (Open of previous bar + Close of previous bar) / 2

How to use Heikin-Ashi Candles for Trading?

Calculation for Heikin-Ashi Candles

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

HA High = Maximum of High, Open, or Close

Low = Minimum of Low, Open, or Close

Open = (Open of previous bar + Close of previous bar) / 2

How to use Heikin-Ashi Candles for Trading?

In this video I have explained Heikin-Ashi Candles for identifying trend in Intraday, Swing and Portfolio trading.

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