Thursday, September 8, 2011

What Is Heikin-Ashi and How to Trade with It?

In forex or stock market, we can make or lose money when the price goes up and down. We need to be
able to predict the direction of the market. Different traders do this using different methods but for most
traders, technical analysis of the price charts is the easiest way. So they spend a lot of time to learn
technical analysis.

In fact, technical analysis was invented and introduced by Japanese traders and by the invention of the
candlesticks. Those who are familiar with the candlestick charts know that it is the best and fastest way
for understand the condition of the market and the psychological situation of the buyers and sellers.
Japanese traders didn’t stop improving their technical analysis methods and tools. They worked a lot
and tried to make the technical analysis and price prediction easier and faster and Heikin-Ashi chart that
came after the candlestick chart is one of the several different achievements of Japanese traders.

I can not say that you can predict faster using the Heikin-Ashi charts but it is easier than candlestick
charts. In this article, I explain about the Heikin-Ashi charts signals and analysis and will compare it with
the candlestick charts and then talk about my personal opinion about Heikin-Ashi charts and the way
that you can use them in your trades.

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