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Monday, June 22, 2009

What is Heikin-Ashi?

The Heikin-Ashi technique is an alterntive of charting candle stick bars to show prevailing trends. The Open, High, Low and Close are recomputed as below

HAClose = (Open + High + Low + Close)/4

HAOpen = (Yesterday’s Open + Yesterday’s Close) / 2

HAHigh = Maximum of Today’s High, Open and Close

HALow = Minimum of Today’s High, Open and Close

The down days are represented by shaded bars, while the up days are the empty bars.

[ Pending Further Update ]




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