Download the iHeikenAshiSm indicator
Description of the indicator
Heikin Ashi is a type of trading chart that originated in Japan (“heikin ashi” translation being “average bar”).
Heikin Ashi bars are similar to candlesticks and standard bar in that they show similar information (the open, high, low, and close of the time frame) and Heikin Ashi charts are used in trading in the same way as standard candlestick or bar charts, meaning that indicators, moving averages and chart patterns are applied to forecast price movements.
However, Heikin Ashi charts have an additional aspect, the color of the Heikin Ashi bar or candle, which is supposed to indicate the overall direction of the market, ignoring at the same time the minor changes of the price direction and then avoiding false changes of the trend.
This indicator works even better in combination with another indicator, in an effort to reduce the “fake-outs” and to stick to the prevailing trend just looking at the color of the bars.
Parameters:
Variant – bars (candles): Heiken Ashi bars or standard price bars (candles);
Type – drawing type: bars or candles;
MAPeriod – МА period;
MAMethod – МА method;
SmPeriod – smoothing period;
SmMethod – smoothing method.