Candles smoothed so the direction reads more clearly
Heikin-Ashi candles average the open and close before drawing, which smooths away small swings. That makes the direction of the move easier to see. A run of same-coloured candles is read as the trend continuing, and a colour change as a possible turn. Because the values are smoothed they differ from actual prices, so order prices are checked on ordinary candles.
Each candle is drawn after averaging the 4 prices of the period, so even the wicks change shape.
For learning, not investment advice. Decisions are your own.
StockFit · TrueNorthLabs Inc.