Heiken Ashi

Is a type of charts devised by the Japanese after the innovation Japanese candles (Candle Sticks), which is a technique used to clarify and purify price movements.

And Isthaddam with Japanese candles (Candle Sticks) to determine price trends and knowing the strength or weakness of the better direction.

Components of the graph (Heiken Ashi)

Consists graph (Heiken Ashi) like the rest of other charges, as it represents (opening and closing prices and the maximum and minimum price), but differs from the way his account in the representation of prices, by the following equations:

Closing price = (Opening Price High Low Close Price) ÷ 4.

Opening Price = (opening price for the column the previous closing price of the previous column) ÷ 2.

Highest Price = depends on the form of the current candle, whether (the highest price, the opening price, closing price)

= Lowest price and depend on the form of the current candle, whether (the lowest price, the opening price, closing price).

Note the difference between the Japanese chart candles (Candle Sticks) and Chart (Heikin Ashi) in the registration price and format:

Represent prices at Candlestick (Candle Sticks):

Prices on representation (Heikin Ashi):

Signals to identify the basic price trend and procurement opportunities and vice versa in the sale:

Candles circle without the bottom: Refers to the strength of the bullish trend.

Candles with a small body with upper and lower shadow is large: to indicate that the current trend is in danger and tends to change direction or in the direction of accidental entry.

Candles filled: Refers to the downside.

Candles filled with no upper shadow: Refers to the strength of the bearish trend.