November 12, 2008 (Last updated on December 13, 2013)
Heikin-Ashi is charting technique (which can be even called an indicator) that substitutes the traditional Japanese candles on the chart with the more «balanced» versions of the candles. Each parameter of a candle — Close, Open, High and Low — is derived from the common candles parameters via the special formulas. The purpose of this charting technique is to eliminate the irregularities present on the chart and show the price trends and consolidations more clearly. Today I uploaded an e-book about Heikin-Ashi technique to my site. Its called Using The Heikin-Ashi Trading Technique and was written by Dan Valcu. Its quite a short e-book that features a very detailed description of Heikin-Ashi, explains its constructing process and offers the trading strategies that can be used with the Heikin-Ashi charts. If you want to find a new way of looking at the charts, I strongly recommend learning the Heikin-Ashi technique with this e-book.
By the way, the MetaTrader 4 software has Heikin-Ashi as the standard indicator. So, you dont need to search for it or create one yourself. Just read about this technique, attach the indicator to your MT4 chart and have fun trading.