Discussing the article: "Price Action Analysis Toolkit Development (Part 11): Heikin Ashi Signal EA"
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Check out the new article: Price Action Analysis Toolkit Development (Part 11): Heikin Ashi Signal EA.
MQL5 offers endless opportunities to develop automated trading systems tailored to your preferences. Did you know it can even perform complex mathematical calculations? In this article, we introduce the Japanese Heikin-Ashi technique as an automated trading strategy.
The Heikin Ashi technique was developed by Munehisa Homma, an 18th-century Japanese rice trader who is also credited with pioneering candlestick charting, a fundamental tool in technical analysis. Originating in Japan, Heikin Ashi was designed to help traders achieve a clearer perspective on market trends by focusing on average price movement rather than individual candlestick formations. In Japanese, Heikin means “average” or “balance,” while Ashi translates to “bar” or “candlestick.” This naming reflects the core principle of Heikin Ashi charts—smoothing price data to provide a more balanced and less volatile view of market movements. Let's take a look at the diagram below, which illustrates how a traditional candlestick chart is transformed into a smoother Heikin Ashi chart.
Author: Christian Benjamin