Registered: Feb 2010
11-01-12 11:39 PM
Quote from Mirzy:
I have been using Heikin Ashi ever since I started looking at charts since one of my mentors told me it was much better than regular candle sticks. I have recently read that regular candle sticks are better to determine price action and better for candlestick formations which I am focusing on lately. I have not tested out the difference myself yet but I was wondering if you guys can tell me if regular candles are better for price action and candlestick formation trading?
Heikin Ashi indicator was designed to be used with standard candlestick charts. The purpose was for it to "identify trend" and you would then use standard Japanese Candlestick patterns to time your entry into the trend. Simply, if you're using it correctly, your standard candlestick charts are either overlay with Heiken Ashi or a sub-graph is made.
Yet, like all things that are designed...users eventually use it differently than the way it was initially designed.