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Heikin-Ashi | Technical Indicators
Understanding the Heikin-Ashi chart โ
Hey there!
Today weโll be talking about Heikin-Ashi charts, a simplified way of identifying and analyzing trends.
The Heikin-Ashi technique is used in conjunction with candlesticks to identify and analyze trends. Looking very similar to a candlestick chart, a Heikin-Ashi chart is made up of Heikin-Ashi bars, that are each calculated as an average of past price movement.
There are mainly 4 types of Heikin-Ashi bars, both on the bullish and bearish, and look like the following ๐๐ผ
![](https://media.beehiiv.com/cdn-cgi/image/fit=scale-down,format=auto,onerror=redirect,quality=80/uploads/asset/file/c4c75c3d-9d7b-4a99-a89b-9d3164181468/heikin-ashi.png?t=1700744020)
But, werenโt candlesticks simple enough to understand?
Though the candlesticks theory is reliable and simple, there exist over 50 signals, and analyzing candlesticks can be tedious. Heikin-Ashi charts solve this problem by giving a simpler and smoother chart.
![]() Candlestick Chart of Nifty50 | ![]() Heikin-Ashi Chart of Nifty50 |
Giving limited signals, Heikin-Ashi charts allow for a sharper assessment of the trend, filtering out all the market noise.
Note, however, that because Heikin-Ashi is a modified candle, its opening and closing prices would not be the same as a regular candle. There are no gaps seen on a Heikin-Ashi chart as well.
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Learn the unique features of Heikin-Ashi charts and how to use them for trades in the Heikin-Ashi Trading Course from Mr. Dinesh Nagpal, a full-time derivatives trader with a market experience of 15+ years.
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None of the above stock ideas are intended as recommendations. Please consult a registered advisor before buying/selling.
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