{"id":3058,"date":"2020-03-05T18:42:46","date_gmt":"2020-03-05T15:42:46","guid":{"rendered":"https:\/\/roboforex.com\/blog\/?p=3058"},"modified":"2026-05-26T10:53:10","modified_gmt":"2026-05-26T07:53:10","slug":"trading-with-heiken-ashi-indicator","status":"publish","type":"post","link":"https:\/\/roboforex.com\/blog\/2020\/03\/05\/trading-with-heiken-ashi-indicator\/","title":{"rendered":"Trading with Heiken Ashi indicator"},"content":{"rendered":"\n

In this article, we will discuss using an interesting Heiken Ashi indicator<\/strong> in trading. This indicator shows price movements on the chart in a more averaged way than a normal candlestick chart.<\/p>\n\n\n\n

<\/span>Why is Heiken Ashi interesting?<\/span><\/h2>\n\n\n\n

The Heiken Ashi (translated as \"middle candlestick\") indicator is just another way of representing the price chart as candlesticks, different from the popular Japanese candlesticks. In essence, it is an alternative way of drawing a price chart by averaging. The Heiken Ashi indicator features by many popular trading terminals, including MetaTrader 4<\/a> and MetaTrader 5<\/a>.<\/p>\n\n\n\n

This indicator was published in a journal for traders in 2004, after which traders started using it. The indicator is based on averaging fluctuations of the price in the previous timeframe<\/a>. The indicator helps to eliminate unwanted market noise, shows the actual trend well, and helps to find reversal points.<\/p>\n\n\n\n

The charts drawn with Heiken Ashi look more smoothed compared to normal bars or Japanese candlesticks. On Heiken Ashi charts, we do not see minor shadows or gaps, only the most important information is shown, representing the current market situation. Heiken Ashi is a universal indicator, applicable to different financial markets: Forex<\/a>, stock, goods, etc.<\/p>\n\n\n\n

Heiken Ashi wipes off most lower shadows of bullish candlesticks and upper shadows of bearish ones. A series of large white candlesticks, usually lacking lower shadows, reveals an ascending movement on the market. 
Conversely, a series of large bearish candlesticks with lower shadows means a downtrend. If the bodies of the candlesticks on the chart shorten, this signals<\/a> a weakening of the trend and, possibly, an upcoming correction.<\/p>\n\n\n\n

\"Why<\/a><\/figure>\n\n\n\n

<\/span>Parameters and settings of Heiken Ashin<\/span><\/h2>\n\n\n\n

In the popular trading platforms МetaTrader 4 and МetaTrader 5, the Heiken Ashi indicator adds to the chart via the Main menu: Insert - Indicators<\/a> - User - Heiken Ashi. The Heiken Ashi candlesticks will be added to the current price chart. To avoid overlapping of the Heiken Ashi chart and the Japanese candlesticks chart, you can choose the linear price representation: then, on the chart, the Heiken Ashi candlesticks and a thin curved line of the price will only be reflected.<\/p>\n\n\n\n

By default, the Heiken Ashi candlesticks colors are red and white: they will be poorly visible if the background color of the window is also white. You can choose the colors of bullish and bearish candlesticks, as well as their shadows via the settings window in Input Parameters. Candlesticks are drawn automatically, by a set algorithm.<\/p>\n\n\n\n

The algorithm of calculating and drawing the candlesticks looks as follows:<\/p>\n\n\n\n