Heikin Ashi
A modified candlestick chart that uses averaged OHLC values to filter noise and make trends easier to see — at the cost of losing real-time price accuracy.
Formula
HA Close = (Open + High + Low + Close) / 4 HA Open = (Prior HA Open + Prior HA Close) / 2 HA High = Max(High, HA Open, HA Close) HA Low = Min(Low, HA Open, HA Close)
Heikin Ashi (Japanese: "average bar") recalculates each candle using averages of the current and prior candle's OHLC values. The result is a smoother chart where trending periods appear as sequences of same-colour candles with minimal or no lower (uptrend) or upper (downtrend) wicks.
Important caveats:
- Heikin Ashi prices are not real prices — you cannot place orders based on HA levels.
- It lags more than standard candles; reversals show up later.
- Most useful as a trend-clarity filter, not a standalone trading tool.
Related Terms
Bar Chart
A chart showing each period's open, high, low, and close as a vertical bar with left and right tick marks.
BeginnerLine Chart
A chart connecting closing prices with a continuous line — the simplest representation of price history over time.
BeginnerMoving Average
The average closing price over N periods, updated each bar — smooths noise and exposes the underlying trend direction.
BeginnerTrend
The persistent directional bias of price over a defined timeframe — up, down, or sideways.
Beginner