Candlestick charts vs. Heikin Ashi charts

The best way to understand Heikin Ashi charts is to know that in Japanese "heikin" is literally translated to the word "average". This means that Heikin Ashi charts attempt to show an average price of an asset over time rather than exact measurements like a candlestick chart.

Candlestick charts are one of the most detailed ways to visualize and follow price. They show the open, high, low, and close.

Heikin Ashi charts take that same data, but instead attempt to smooth it out by taking the averages of the current time period and previous time period. So while a candlestick chart shows real-time data for the current time period, a Heikin Ashi chart shows an average of that data. Here's how the chart is calculated:

Open = (Previous bar open + previous bar close) / 2
Close = (Open + High + Low + Close) / 4
High = Highest point whether it's the open, high, low or close
Low = Lowest point whether it's the open, high, low or close

If you have anything to add to this video or think we missed something, please write it in the comments below. Thanks for following along!

#TradingView #TechnicalAnalysis

[buzzevermore]

I like the videos too. This helped me understand the comparison much better than what I thought. I've experimented with both. After watching your video, I feel I am a person who would benefit from less noise, and I don't need every minute detail. Thanks!

[I-WIN-LOTTERY-JACKPOTS]

I prefer Ashi on higher time frames and candle stick charts on my lower time frames

[HishamAlnemari]

thank you!! this was so useful!! candle chart better than Heikin Ashi chart

[CrystalLiu]

much appreciated. Videos for all items is great. There are many things I don't know. Thank you.

[mohaals]

I prefer hikin ashi on smaller timeframe because it less stressful

[markm]

I can't believe that I've been subscribed to TV pro for over a year and I didn't even know you guys have a YouTube channel

[tallman]

Amazing...please keep these videos up...much appreciated..

[NoWayOu]

So why is the Candelstick chart always choppy on the free version? I am testing my strategy and I can't because only Heikin Ashi shows me tradeable charts..

[MrEasiertolie]

Loving these videos. Very informative and clear.

[vardanmishra]

can we use this Heiken Ashi for option trading

[agamankhati]

So this was why i was having problem with copying the chart from the trader cause i was using heikin and i didnt got the full info

[ChaosFX_]

hikin ashi keeps me calm, make better choices

[Crystal_G_]

I used this along with supertrend 15, 1.2 settings in scalping 15 mins very effective... But you cant use this as support and resistance....

[mspatils]

cant be used for automating heikin ashi chart it will give wrong price

[ryanq]

So for scalping better stick with candle?

[sorakamein]

How to set heikin ashi in tradingview android?

[ShubhamSharma-topo]

hey tradingview team,
can i implement my strategy on heiken ahi cadles with real time price.
please help