{"id":9658,"date":"2022-10-12T19:10:40","date_gmt":"2022-10-12T19:10:40","guid":{"rendered":"https:\/\/mdr.foobrdigital.com\/?p=9658"},"modified":"2022-10-12T19:10:40","modified_gmt":"2022-10-12T19:10:40","slug":"what-is-heikin-ashi","status":"publish","type":"post","link":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/2022\/10\/12\/what-is-heikin-ashi\/","title":{"rendered":"What is Heikin Ashi?"},"content":{"rendered":"\n

Heikin Ashi?<\/strong><\/p>\n\n\n\n

You\u2019re probably familiar with the three popular\u00a0chart types:\u00a0line chart<\/strong>,\u00a0bar chart<\/strong>, and the\u00a0candlestick chart<\/strong>.<\/p>\n\n\n\n

But there\u2019s another type of chart that you should know about that uses a totally different technique to display price action.<\/p>\n\n\n\n

The Heikin Ashi<\/strong>.<\/p>\n\n\n\n

Like the beer?<\/p>\n\n\n\n

Umm nope. Let\u2019s focus now. We\u2019re NOT talking about beer here!<\/p>\n\n\n\n

We\u2019re talking about CHARTS! (Although the spelling does seem pretty close. ?)<\/p>\n\n\n\n

\u201cHeikin Ashi<\/strong>\u201d, also known as \u201cHeikin-Ashi<\/strong>\u201d or \u201cHeiken Ashi<\/strong>\u201d is a charting technique used to display prices that, at a glance, looks similar<\/em> to a traditional Japanese candlestick chart.<\/p>\n\n\n\n

The difference is the method used in how candlesticks are calculated and plotted<\/strong> on a chart.<\/p>\n\n\n\n

Traditional\u00a0Japanese candlesticks\u00a0are great at helping you find good entry points since they display potential reversals (like a\u00a0shooting star) or breakout (like a bullish\u00a0marubozu\u00a0closing above a resistance level).<\/p>\n\n\n\n

But what about once you\u2019re IN a trade?<\/p>\n\n\n\n

Applying the Heikin Ashi technique to a price chart can help you decide whether to stay in the trade or get out<\/strong>.<\/p>\n\n\n\n

Heikin Ashi charts make candlestick charts more readable<\/strong> for traders who want to know when to stay in a trade and ride a strong trend and when to get out when the trend weakens.<\/p>\n\n\n\n

Basically, Heikin Ashi is a modified candlestick charting technique<\/strong> that rearranges<\/em> how the price is displayed so trend traders can have a higher confidence level when deciding whether to remain in a trade or exit.<\/p>\n\n\n\n

Some traders, usually longer-term traders, use Heikin Ashi charts as an alternative<\/em> to traditional Japanese candlestick charts<\/strong>.<\/p>\n\n\n\n

Other traders use them in conjunction<\/em> with traditional Japanese candlestick charts,<\/strong> switching back-and-forth between the two.<\/p>\n\n\n\n

What is Heikin Ashi?<\/h2>\n\n\n\n

In Japanese, Heikin means \u201caverage\u201d and Ashi means \u201cpace\u201d. So together, Heikin Ashi means the \u201caverage pace of price\u201d.<\/strong><\/p>\n\n\n\n

\"Japan\"<\/figure>\n\n\n\n

Heikin Ashi is a type of candlestick charting technique used to help filter market noise<\/strong>.<\/p>\n\n\n\n

The Heikin Ashi technique was created hundreds of years ago by Munehisa Homma<\/strong>, a rice merchant from Sakata, Japan, who is considered the father of the candlestick chart.<\/p>\n\n\n\n

So Darth Vader is to Luke Skywalker, as Munehisa Homma is to Heikin Ashi.<\/p>\n\n\n\n

Homma realized that by tracking the price action in the rice market, he could actually \u201csee\u201d the psychological behavior of other market participants, and make use of it.<\/p>\n\n\n\n

Here\u2019s an example of a Heikin Ashi chart<\/strong>:<\/p>\n\n\n\n

\"Heikin<\/a><\/figure>\n\n\n\n

To the untrained eye, the chart looks<\/em> like your typical Japanese candlestick chart.<\/p>\n\n\n\n

Each Heiki Ashi candlestick has a body<\/strong> and an upper and\/or lower shadow<\/strong> (or wick<\/strong>).<\/p>\n\n\n\n

\"Heikin<\/a><\/figure>\n\n\n\n

They\u2019re the same right?<\/p>\n\n\n\n

Nope.<\/p>\n\n\n\n

There\u2019s a BIG difference between the two types of candlestick charts.<\/p>\n\n\n\n

Let\u2019s learn what that difference is.<\/p>\n","protected":false},"excerpt":{"rendered":"

Heikin Ashi? You\u2019re probably familiar with the three popular\u00a0chart types:\u00a0line chart,\u00a0bar chart, and the\u00a0candlestick chart. But there\u2019s another type of chart that you should know about that uses a totally different technique to display price action. The Heikin Ashi. Like the beer? Umm nope. Let\u2019s focus now. We\u2019re NOT talking about beer here! We\u2019re talking about […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[769],"tags":[],"_links":{"self":[{"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/posts\/9658"}],"collection":[{"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/comments?post=9658"}],"version-history":[{"count":0,"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/posts\/9658\/revisions"}],"wp:attachment":[{"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/media?parent=9658"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/categories?post=9658"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/tags?post=9658"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}