Frequently Asked Questions|
Please click on the links below to view the answers.
I trade using Japanese candlesticks
and patterns. Why should I move to heikin-ashi?
- Heikin-ashi candles are also price candles using
modified open, high, low, and close values.
- Heikin-ashi charts show clear trends and reversals,
eliminating the need for guesswork.
- This technique is both visual and quantifiable.
- Heikin-ashi takes one bar/candle at a time. If you look
at price candles and patterns in the 'context' you add subjective judgment.
Who needs it?
How can heikin-ashi remove Japanese
candlestick patterns from my trading?
When I look at heikin-ashi charts I
immediately think of a mechanical trading system.
You have choices. Heikin-ashi is versatile and offers flexibility.
- Work only with heikin-ashi and other
- Leave candlestick patterns in a separate chart, add
the heikin-ashi technique, and confirm patterns.
Heikin-ashi as all other visual and quantifiable techniques is not a printing
press. It is a better instrument to visualize trends and reversals in addition
to its proven quality to warn about future reversals. You may try to use it with
other systems you may use or design.
My trading platform does not have
heikin-ashi charts and indicators?
This is an issue you may discuss with your broker or providers of your trading
software. There are many technical analysis platforms using this revolutionary technique
today such as TC2000, stockcharts.com, Metatrader.
I am a FOREX trader. Which is the best
time frame to use heikin-ashi with?
Heikin-ashi is successful when applied to any time frame and when used with all other instruments.
Time frames are related to your personal profile. Try heikin-ashi charts in
several time frames and you will see the clear results. It is obvious that
instruments that historically display stronger trends will be better candidates
for your heikin-ashi approach.
I trade many Japanese candlestick
patterns. How many patterns should I expect with heikin-ashi?
The challenge to learn, memorize, identify, and apply patterns is completely
removed when using heikin-ashi technique as a visual instrument. Heikin-ashi as
a visual tool has no patterns and only three candle types.
I have seen that a doji on a
heikin-ashi chart is a sign of immediate reversal. Are there any other
The doji is the typical reversal warning. The sudden change of candle color is
another sign of trend reversal.
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