So my QuoteTracker has an option for "Heikin-Ashi candle technique." In the linked pic, the top chart is DELL today (1/16/07) 2 min chart. The bottom half is the same chart with the Heikin-Ashi candle technique applied. What exactly does it do? The top chart seems pretty untradable, and the bottom one looks "normal." The top chart looks like one of those penny stock charts... http://img.photobucket.com/albums/v326/ironfistx/wtfheikin-ashi.gif
Surely you notice the difference in the two charts??? The Heikin-Ashi chart fills in all the price gaps that you would normally see on charts that at first eye don't seem readable if your using Japanese Candlestick Analysis. This is important for traders that use Japanese Candlestick analysis and the patterns on a chart are unreadable. Simply, if your not using Japanese Candlestick Analysis... Don't bother with Heikin-Ashi charts nor normal candlestick charts. You should also use Google because there's more info about this type of candlestick chart the recent few years in comparison in the past when traders mistakenly thought it was a strategy instead of thinking it was a type of chart (ex. bar, line, candlestick, tick) http://www.google.com Last of all, you can use the mathmatics and use bar charts to keep the bar type chart if your not into a candlestick style chart. It does the same thing via the mathmatics of the chart construction (averaging the prices) producing filled gaps. Once again, it is not a strategy (common misconception)... It is a type of chart and I only recommend its use if you have a chart that's unreadable for Japanese Candlestick Analysis info. Mark
I definately see a difference. But when it's not enabled, for many of the "candles" it has the same open, high, low, close price. When heikin-ashi is enabled, it gives different open, high, low, and close prices. I was just wondering. I will definately leave it on