Heikin-Ashi Candles

Heikin-Ashi candles are a modified candlestick chart where each candle is built from averaged open, close, high and low values, partly derived from the prior candle. The smoothing filters out market noise and makes trend direction easier to read — long candles with no lower wick signal a strong uptrend, no upper wick a downtrend. Because they show averaged rather than actual prices, they are not suited for placing exact entry or stop levels.