Japanese for “average pace,” Heikin-Ashi candlesticks utilize the open-close data from the previous period and the open-high-low-close data from the current period to create one single combination candlestick. The goal is for the resulting candlestick to filter out some of the extra “noise” to better demonstrate the current trend. These candlesticks are not intended to be used to determine bullish or bearish reversal patterns. Rather, they are used to identify trending periods, reversal points, and classic technical analysis patterns.
Heiken Ashi Candlesticks
Market Terms
We don't know everything about the markets. We're just devoted to learning. Taken from those smarter than ourselves, here's how we define Heiken Ashi Candlesticks.