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Forex how to read heiken ashi candles?

Forex trading is a popular way of earning money these days, and it has been around for a long time. One of the most important things to learn when it comes to Forex trading is how to read the charts. The Heiken Ashi candlestick chart is a popular type of chart used in Forex trading. In this article, we will explain what Heiken Ashi candles are and how to read them.

What are Heiken Ashi candles?

Heiken Ashi candles are a type of candlestick chart that is used to identify market trends. It is a modified version of the traditional candlestick chart, and it is designed to filter out some of the noise that is present in the market. Heiken Ashi candles use the average price of an asset over a certain period of time to create a candlestick chart.

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How to read Heiken Ashi candles?

Heiken Ashi candles can be read in a similar way to traditional candlestick charts. However, there are some differences that you need to be aware of. Here is how to read Heiken Ashi candles:

1. Colors of the candles

Heiken Ashi candles have different colors than traditional candlesticks. The colors of the candles indicate the trend of the market. A bullish trend is indicated by green candles, while a bearish trend is indicated by red candles.

2. Body of the candles

The body of the Heiken Ashi candles is thicker than traditional candlesticks. The thickness of the body indicates the strength of the trend. A thick body indicates a strong trend, while a thin body indicates a weak trend.

3. Shadows of the candles

Heiken Ashi candles do not have shadows like traditional candlesticks. Instead, they have a wick that is either at the top or bottom of the candle. The wick indicates the highest or lowest price that the asset reached during the trading period.

4. Trading signals

Heiken Ashi candles can be used to identify trading signals. Here are some of the trading signals that you can get from reading Heiken Ashi candles:

Bullish reversal signal: A bullish reversal signal is indicated by a red candle followed by a green candle. This indicates that the trend is changing from bearish to bullish.
– Bearish reversal signal: A bearish reversal signal is indicated by a green candle followed by a red candle. This indicates that the trend is changing from bullish to bearish.
– Trend continuation signal: A trend continuation signal is indicated by candles of the same color. This indicates that the trend is continuing.

Conclusion

Heiken Ashi candles are a popular type of candlestick chart used in Forex trading. They are designed to filter out some of the noise that is present in the market. Reading Heiken Ashi candles is similar to reading traditional candlesticks, but there are some differences that you need to be aware of. Understanding how to read Heiken Ashi candles can help you identify market trends and trading signals, which can be useful in making profitable trades.

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