Heikin Ashi chart, free and live

What the candles tell you

A run of rising candles with no wick under the body is a strong up move: the averaged open was the lowest point. Falling candles with no wick on top are the same for a down move. Small bodies with wicks on both sides show the trend losing pace.

Because each candle carries part of the one before, a single sharp candle cannot flip the colour on its own. That smooths out noise, and it also means the colour changes a candle or two after the turn.

How they are worked out

Close = (open + high + low + close) ÷ 4 of the real candle. Open = (previous Heikin Ashi open + previous Heikin Ashi close) ÷ 2; the first candle uses the middle of its own open and close. High is the highest of the real high and the new open and close, low the lowest of the real low and the new open and close.

The Heikin Ashi close is not a price anyone traded at. For entries, stops and the live price, read the real candles; the chart type button at the top of the chart puts them back.

A worked example

Example numbers: the previous Heikin Ashi candle opened at $67,350.00 and closed at $67,350.00. The real candle now has an open of $67,520, a high of $67,900, a low of $67,400 and a close of $67,850.

Heikin Ashi close = ($67,520 + $67,900 + $67,400 + $67,850) ÷ 4 = $67,667.50. Open = ($67,350.00 + $67,350.00) ÷ 2 = $67,350.00. High = $67,900.00, low = $67,350.00. The open is the low, so the candle rises with no lower wick: a strong one.

Questions and answers

Is the Heikin Ashi chart free in Pravex?

Yes. Heikin Ashi is one of the chart types in the chart type menu, free on every market.

Does the Heikin Ashi close show the real price?

No. It is an average of the real candle. The real last price is the plain candle’s close, which the price scale on the Pravex chart keeps showing.

Is Heikin Ashi good for day trading?

It helps you stay with a trend and ignore single noisy candles. The price it shows lags, so many traders read the trend on Heikin Ashi and place orders off the real candles.

Why does a Heikin Ashi chart look calmer than candles?

Every value is an average, and each open carries half of the candle before it. Spikes get blended in, so the colours change less often than plain candles do.

More indicators on a live chart: Volume profile, Renko chart, All indicators.