Boten Smooth Heikin Ashi

Smooth Heikin Ashi provides a more smoothed signal of bull or bearish trends than regular Japanese candlesticks, or even the standard Heikin Ashi candles.

Heikin Ashi as an alternative candlestick pattern that has been in use since its invention in Japan back in the 1700s. On normal Japanese candlesticks, there is a lot noise with mixed bearish and bullish candles side by side, even during trends. Heikin Ashi reduces this noise leaving an easier visual representation of trends.

This indicator is taking this concept one step further as the smoothed version of the Heikin Ashi candlesticks. This reduces market noise and volatility by applying a smoothing algorithm to the Heikin Ashi candles. This smoothing effect makes it easier for traders to identify and follow trends, as it filters out some of the price fluctuations that may be misleading in traditional candlestick charts.

The indicator is effective in identifying trends and trend reversals. The smoothed nature of the indicator helps traders to distinguish between periods of consolidation and genuine trend movements, making it easier to enter and exit trades at opportune moments.

The Smoothed Heikin Ashi indicator offers traders a tool for analysing price trends, identifying potential trade opportunities, and managing risk effectively. Its effectiveness lies in its ability to provide a smoothed representation of market dynamics, making it easier for traders to navigate the complexities of the financial markets.

Input Parameters

• There are two moving averages used in the calculation of the Smooth Heikin Ashi (numbered 1 and 2).
• Select the moving average method for each of the moving averages 1 and 2. You can select from Simple, Exponential, Smoothed or Linear Weighted.
• Select the moving average period for each of the moving averages 1 and 2.
• You can also decide whether or not to show the wicks of the Smooth Heikin Ashi candles.

The indicator is also know with the different spelling of Smoothed Heiken Ashi.