What is Heiken Ashi?

Heiken Ashi (HA) is the Japanese name meaning "average bar", meaning the average price bar. If the normal Japanese candlestick pattern consists of only the opening, high, low, and close of a candle over a period of time, a Heiken Ashi candle will have a slightly more complicated formula. Detail:

1. Closing price of the current HA candle is the average price of the current period's opening, highest, lowest, closing prices (period zero).

HA-Close = (Open (0) + High (0) + Lowest (0) + Close (0)) / 4

2. The OPEN price of the current HA candle is the average of the OPEN price of the previous HA plus the CLOSE of the previous HA (period -1).

HA-Open = (HA-Open (-1) + HA-Close (-1)) / 2

3. The current HA candlestick HIGH is the highest of the following data (whichever is the highest): This period's high or HA opening price or HA closing price This (period 0)

HA-Highest = Highest of Highest (0), HA-Open (0) or HA-Close (0)

4. HA candlestick LOWER as the lowest among the following data: Current period low or Current HA Open or Current HA Closing (0)

HA-Lowest = Lowest of Highest (0), HA-Open (0) or HA-Close (0)

How to open Heiken Ashi on Metatrader 4:

Metatrader 4 software comes pre-installed with Heiken Ashi Indicator for you, so you do not need to attach it outside. Heiken Ashi is located in the Indicators> Custom section

When opened, Metatrader 4 required two things to do
• Set the background color of the chart to the black
• Turn off the Chart on Foreground function and Select Line Chart

Ok. So the chart will turn out like this (the Line Graph is turned off here) so the Line chart is gone, only the Heiken Ashi remains.

Try to see if the above 2 charts are normal candles and below is the Heiken Ashi of the same chart period.

How to read the Heiken Ashi chart

According to Investopedia, there are 5 main signals that help determine the trend and trading ability of Heiken Ashi (colors are based on the image above).
• White candle (bullish candle) with no lower shadow ==> strong uptrend signal ==> continue to let profit run
• The white candles show an uptrend ==> brothers can buy or exit sell orders
• A candle with a small body and upper and lower shadows indicates the possibility of a trend change. If any brothers like strong feelings, come early in these candles, otherwise, wait for more signs before making a decision (roughly the confused point of the trend, possibly reversing or going forward).
• The red candles indicate a downtrend ==> should sell or exit a buy order
• The red candles and no shadows show a strong downtrend ==> keep selling until the trend ends
Go back to the example image above and take a look

Conclusion on Heiken Ashi

Obviously, we've seen the trend a bit better, right. Now we just need to determine the trend, watch the candlestick, and enter orders. You should combine HA with some of your other techniques or indicators to increase its accuracy

In general, Heikei Ashi will help you see the main trend and retracement patterns better than using candles