If you take a look at this chart, it has the standard candlesticks that you see on the average chart...
Compared to the same chart, that is using the Heiken Ashi candlesticks...
See how it looks smoother?
Heiken Ashi translated from Japanese means "average pace" of the market. I've been using Heiken Ashi candlesticks for a few months now and quite frankly, I find them to be way better and clearer than standard candlesticks.
Heiken Ashi smooth out the price action into trends, so you don't get the red / green / red chop. What you tend to get is a better strength indicator for momentum in the market. Up or down.
If you notice on May 31st, the market reversed and surged upward. Then the second push in the day upward to the peak. The first chart may spook you into thinking that a reversal was about to happen. Whereas the second chart shows you that there was potential for the second upward movement later in the day.
Standard candlesticks can trigger reaction at the wrong time whereas Heiken Ashi helps you to notice overall movement and wait until their is a clear-ish reversal pattern.
Let me know if you use them in your charting. As I said, I find them to be ten times better indicators for trading.
Thanks for watching,
Brendan Rohan - Indie developer of 'next gen' natural medicine from Melbourne, Australia
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