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Asked a question 11 months ago

What are the advantages / disadvantages of Heiken Ashi charts over standard candle sticks?

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Candle charts and Heikin Ashi charts look quite similar to each other. However, if closely observed, you will spot differences.

Each candle in a candle chart is based on the actual open, high, low, and close for the period under consideration.

However, in a Heikin Ashi chart, each of open, high, low, and close are based on a specific formula rather than actual prices for the period under consideration.

To learn about Heikin Ashi charting, click here19. In this chapter on FYERS School of Stocks, we have explained in detail about Heikin Ashi charting. Not only have we spoken about the basics of Heikin Ashi, but we have also discussed the pros and cons of Heikin Ashi over Candle charts as well as discussed how to analyze and interpret a Heikin Ashi chart.