Heiken Ashi Alerts MT5

What exactly is Heiken Ashi?

In Japanese, the term Heiken Ashi means average bar. It is used to make the candlestick charts more readable and more accessible to spot a trend.  A trader can use the Heiken Ashi to both as an entry and exit strategy. A change of the Heiken Ashi color can often represent the change in the market direction.

Points to Remember

• Using the Heiken Ashi Alerts as a standalone indicator is not a good idea, always combine it with other indicators to get a more accurate analysis.
• A change of trend often starts with a small candle with both upper and lower wick.
• Red candles with no upper wicks mean a strong downtrend.
• Blue candles with no lower wicks mean a strong uptrend.
  
  

Heiken Ashi candles are similar to the ordinary Japanese candlesticks but with a different mode of calculation.

• Open = [Open (previous bar) + Close (previous bar)]/2
• Close = (Open+High+Low+Close)/4
• High = Max Price Reached
• Low = Min Price Reached