The indicator uses analysis of values of Heiken Ashi Open and Heiken Ashi Close.
Candlestick opening and closing values are calculated by Heiken Ashi algorithm, their directions are determined and only these directions of Heiken Ashi candlesticks are drawn on a price chart as colored bars.
Author: Nikolay Kositsin
Forum on trading, automated trading systems and testing trading strategies
newdigital, 2014.01.15 20:40
An Example of a Trading System Based on a Heiken-Ashi Indicator
With the appearance of candlestick chart
in the U.S., more than two decades ago, there was a revolution in the
understanding of how the forces of bulls and bears work on the Western
markets. Candlesticks became a popular trading instrument, and traders
began working with them in order to ease the reading of the charts. But
the interpretation of candlesticks differ from one another.
One of these methods, which changes the
traditional candlestick chart, and facilitates its perception, is called
the Heikin Ashi technology.