Heikin Ashi
A candle-smoothing overlay that averages each bar with the last — long unbroken color runs mark clean trends.
How to read it
Heikin Ashi are smoothed candles: each one averages the current and previous bar, filtering out noise so a trend shows as a run of same-colour candles. Long green bodies with little lower wick = strong up-trend; the mirror in red for down.
Trading signals
Stay with the trend while candles keep one colour; the first candle with the opposite colour (or long wicks on both sides) hints the move is stalling. Heikin Ashi is best as a visual trend filter, not a precise entry timer — its prices are averaged, not real.
Parameters
Heikin Ashi has no tunable parameters — it's a fixed transform of the candles. Use it alongside an oscillator or moving average for entry timing.