Heiken Ashi ChartsHeiken-Ashi bars are similar to candlesticks, but are based on slightly changed datasets:
The Heiken-Ashi bar is thus plotted as a candlestick with values haOpen, haClose, haHigh, haLow. it's coloured green for up and red for down, to differentiate them from regular candlesticks.
- haClose is the average of the current bar (Open + High + Low + Close)/4
- haOpen is the midpoint of the body of the previous bar: (Open of previous bar + Close of previous bar)/2
- haHigh is the highest value of the set: High (of the current bar),haOpen,haClose
- haLow is the lowest value of the set: Low (of the current bar),haOpen,haClose
Heiken-Ashi gives a much better visual indication of trends, consolidations and reversals than regular candlestick bars for any time frame.