A picture is worth a thousand pips so let\u2019s look at some actual charts.<\/p>\n\n\n\n
First, here\u2019s a traditional Japanese chart<\/strong> of GBP\/JPY on the daily (1D) timeframe:<\/p>\n\n\n\n Here\u2019s the same GBP\/JPY displayed with a Heikin Ashi candlestick chart:<\/p>\n\n\n\n Let\u2019s put them both side-by-side<\/strong>:<\/p>\n\n\n\n The chart on the LEFT <\/strong>is the traditional Japanese candlestick chart, and the chart on the RIGHT<\/strong> is the Heikin Ashi chart.<\/p>\n\n\n\n As you can see from the chart on the right, directional moves are smoothed out in a way absent from the left chart<\/strong>.<\/p>\n\n\n\n Candles on traditional Japanese candlestick charts frequently change from green to red (up or down) which can make them difficult to interpret.<\/p>\n\n\n\n On the other hand, candles on the Heikin Ashi chart display more consecutive colored candles<\/strong>, helping traders to identify past price movements more easily.<\/p>\n\n\n\n You\u2019ll notice that Heikin Ashi charts have a tendency for its candles to stay<\/em> green<\/strong> during an uptrend<\/strong> and stay<\/em> red<\/strong> during a downtrend<\/strong>.<\/p>\n\n\n\n This is in contrast to traditional Japanese candlesticks that alternate color<\/strong> even if the price is moving strongly in one direction.<\/p>\n\n\n\n There are times when the candlesticks change color almost as often as Kylie Jenner changes her hair color.<\/p>\n\n\n\n You probably didn\u2019t even notice the image above is a candlestick chart. ?<\/p>\n\n\n\n Anyways, back to the side-by-side chart\u2026<\/p>\n\n\n\n You can clearly see that the Heikin Ashi chart is much smoother looking<\/strong> in terms of price action.<\/p>\n\n\n\n This is why some forex traders prefer to use the Heikin Ashi candles since it reduces the noise<\/strong> on the chart, and allows them to analyze trends more clearly<\/strong>.<\/p>\n\n\n\n What makes Heikin Ashi different from a traditional Japanese candlestick chart is how the price is displayed in terms of the open and the close<\/strong>.<\/p>\n\n\n\n If you look closely at the Heikin Ashi chart, you\u2019ll notice that each of the Heikin Ashi candlesticks starts from the MIDDLE of the candlestick before it<\/strong>, and not from the level where the previous candlestick had closed.<\/p>\n\n\n\n Heikin Ashi candlesticks \u201cact\u201d this way due to the way they are calculated<\/strong>.<\/p>\n","protected":false},"excerpt":{"rendered":" How is\u00a0Heikin Ashi\u00a0different from a typical candlestick? Let\u2019s learn the difference between a Heikin Ashi candlestick versus a traditional Japanese candlestick chart. A picture is worth a thousand pips so let\u2019s look at some actual charts. First, here\u2019s a traditional Japanese chart of GBP\/JPY on the daily (1D) timeframe: Here\u2019s the same GBP\/JPY displayed with a Heikin Ashi candlestick chart: […]<\/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\/9660"}],"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=9660"}],"version-history":[{"count":0,"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/posts\/9660\/revisions"}],"wp:attachment":[{"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/media?parent=9660"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/categories?post=9660"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/tags?post=9660"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}![\"Traditional](\"https:\/\/bpcdn.co\/images\/2020\/04\/18151947\/Heikin-Ashi-traditional-GBPJPY-daily-chart-example.png\")
<\/a><\/figure>\n\n\n\n<\/a><\/figure>\n\n\n\n<\/a><\/figure>\n\n\n\n<\/a><\/figure>\n\n\n\n<\/a><\/figure>\n\n\n\n