Forex glossary
Heikin-Ashi Candles
Heikin-Ashi candles use current OHLC and previous Heikin-Ashi values. The close averages current O, H, L and C; the open averages the prior HA open and close. They smooth the price display, but their synthetic levels may differ from prices available for order execution.
Illustrative example
How does it work in practice?
Assume actual prices are O = 100, H = 106, L = 98 and C = 104. The Heikin-Ashi close is 102; that synthetic value need not be available for execution at the real candle close.
A case to work through
Two closing values
Hypothetically, O=200, H=212, L=196 and C=208; an order is assessed after the bar ends.
- HA close=(200+212+196+208)/4=204.
- The actual close is 208; synthetic 204 does not confirm an available fill.
What follows? Store the chart condition separately from the execution price.
Example boundary: Bid/ask quotes and execution assumptions may also differ from the standard close.
Chart versus execution
Text description of the diagram
- Actual OHLC: Price data supplies the transformation inputs.
- Synthetic HA: Calculated candles smooth the display.
- Order price: Check actual quotes and the execution model.
A useful distinction
Heikin-Ashi Candles / Renko Charts
Heikin-Ashi transforms each period's OHLC; Renko builds bricks from price movement and a chosen size.
Check your understanding
Calculate HA close and identify appropriate execution data.
Show the answer and explanation
42
(40+46+38+44)/4=42.
Volatility and transformed data
Step 6 / 9 · 0 / 9 reviewed
View the full sequence →Progress is saved only in this browser.
Read the fuller explanation
Sources and documentation
- TradingView – Heikin-Ashi
Synthetic OHLC formulas, including averaging current OHLC for HA close.
Document read:
The example illustrates the mechanism. Check current account conditions and instrument specifications with the provider.