MarketAPI logoMarketAPI

Chart types

Heikin Ashi candles

Smoothed candles that make trends easier to see: long runs of the same colour, fewer distracting flips.

2 min read · Try it on a live chart ↗

The idea in plain words

"Heikin ashi" means "average bar" in Japanese. Each candle uses averages of the current and previous candle, so random flips are filtered out and trends show as solid runs of green or red.

How it is calculated

The close is the average of the four prices; the open is the midpoint of the previous Heikin Ashi candle.

HA close = (open + high + low + close) ÷ 4
HA open = (previous HA open + previous HA close) ÷ 2
HA high = max(high, HA open, HA close),  HA low = min(low, HA open, HA close)

How to use it

  • Green candles with no lower wicks: strong uptrend. Red with no upper wicks: strong downtrend.
  • Small bodies with wicks on both sides: possible trend change.

Drawing conclusions

  • Heikin Ashi prices are averages, not the real prices: use normal candles for exact levels.

Example

A two-week rally appears as eleven green Heikin Ashi candles in a row, while normal candles show four red ones in between.

Prices in examples are illustrative.

Watch out for

  • The last Heikin Ashi close is not the market price.

A little history

A Japanese technique; Dan Valcu brought it to wide attention among Western traders in a 2004 magazine article.

Educational content only. No indicator or pattern predicts the future, and nothing here is investment advice.