Heikin-Ashi.mq4
Download Heiken-Ashi.mq4
A Heikin-Ashi price candle is an
indicator overlaying the normal OHLC price bars. The Heikin-Ashi
price is calculated as follows:
Close = (Open+High+Low+Close)/4
Open
= [Open (previous bar) + Close (previous bar)]/2
High = Max
(High,Open,Close)
Low = Min (Low,Open,
Close)
The technique of using this indicator is
to help identify a trend. Because the open is calculated form the
previous open it displays clear direction in which price is moving.
This means that the price displayed on a chart will differ from the
actual price that is being
traded.
The length of the Heikin-Ashi price candle can
indicate the strength of movement. The Heikin-Ashi price candle also assists in
the identification of a reversal. When the candle changes colour
then a reversal can be expected. This, coupled with other
indicators, can support trade entries
