Everyone wants to become a successful trader. For the trading purpose, they use different applications, software, tools, and indicators. To get a healthy profit they use different indicators that Heiken Ashi indicator can help them in trading in a unique manner.
HEIKEN ASHI INDICATOR MT4
Trading is the most common occupation in the world. That’s why many traders use indicators. Today I will share some information about the Heiken Ashi indicator. Today you will know that what is Heiken Ashi indicator and how it can be used in trading and for which purpose it can be used.
About Heiken Ashi indicator:
The Heiken Ashi indicator is also known as Heiken Ashi candlesticks. It is a Japanese trend indicator. Heiken Ashi means average bar. It makes candlesticks bars more readable and accessible to spot a trend. This indicator can be used as both entry and exit strategies. Change in colour of this indicator makes changes in the market direction. This indicator shows the modified price on the chart.
Heiken Ashi indicator is based on candlestick pattern whether they are going upward or they are moving in a downtrend. This indicator also used bearish and bullish trend. The candles in the chart help to understand easily.
This indicator calculates the value of each candlestick easily. This indicator is very helpful for technical analysis. It does also show open, high, low, and close.
They calculate values for each candlestick pattern. Heiken Ashi indicator is useful because it allows showing different information about different timeframes, area plotted on the chart. This indicator is the best indicator for candlestick analysis. It is the best technical tool. This indicator also uses different formulas for its calculations .the formulas are given below
- Open = (open of previous bar + close of previous bar)/2
- Close = (open + high + low + close)/4
- Low = the minimum value from the low, open, or close of the current period
- High = the maximum value from the high, open, or close of the current period
High candlesticks are represented by the upper wick and low candlesticks are represented by the lower wick. The open and close trend is shown by the body of the candle stick pattern. It can change colour and makes the candlesticks chart more visible
Heiken Ashi’s indicator has a specific pip. Pip a main point in the indictor. This indicator also uses different colour schemes for its users. Colour scheme used in this indicator is green, red, blue, cyan, purple, and magenta. The green, red and purple colour is used for candlestick pattern which is changing concerning time.the magenta and green colour is used for arrows which shows the uptrend and downtrend in the candlestick pattern. The specific pip for this indicator is 1.14198. This indicator also tells about the buy and sell rate.
USES of Heiken Ashi indicator
Heiken Ashi’s indicator has many uses. Some of the most important uses of this indicator are discussed below. This indicator is used for indicating and detecting candlestick pattern. This is one of the most popular indicators of its time.
Heiken Ashi indicator is created by a Japanese, after that this indicator is used for detecting clear candlestick pattern in the west. Heiken Ashi indicator is very easy to use and it is very easy to understand this indicator because for ease of understanding it creates different colour patterns in the indicator. Different coloured arrows are also used in this indicator. It is one of the best indicators. Also, this indicator can be used in trading with different currencies.