Heikin-Ashi Candlesticks are an offshoot from Japanese candlesticks. Heikin-Ashi Candlesticks use the open-close data from the prior period and the open-high-low-close data from the current period to create a combo candlestick.
The resulting candlestick filters out some noise in an effort to better capture the trend. In Japanese, Heikin means 'average' and 'ashi' means 'pace' (EUDict.com).
Taken together, Heikin-Ashi represents the average-pace of prices. Heikin-Ashi Candlesticks are not used like normal candlesticks. Dozens of bullish or bearish reversal patterns consisting of 1-3 candlesticks are not to be found.
Instead, these candlesticks can be used to identify trending periods, potential reversal points and classic technical analysis patterns.
A long hollow Heikin-Ashi candlestick shows strong buying pressure over a two day period. Absence of a lower shadow also reflects strength.
Disclaimer: Use of the information herein is at one's own risk. The information provided here is not, and must not be construed to be, or form part of, any recommendation, offer or invitation to buy or sell any securities. Some of the information here is exclusively for iSaham clients only.
|#||Symbol||Last Price||HA-Close||HA-Open||HA-High||HA-Low||iSaham Score|