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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
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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