Hey what do you all think about Heikin-Ashi Candles? I think that for trend trading they are great for keeping me in the trade as it filters out the noise but you have to also watch the price in case it filters out things you need to know.
I would just stick with basic candle sticks and read the price action
I looked at them closely for a while and I could not get them to benefit me. The real trouble is that they can actually take you OUT of a trend prematurely because they can change color during periods of low volatility even though the pair you are trading does not break any new extreme against your trade.
An arbitrager on acid just looks for LSD and THC, nevermind the opens and the closes.
Would it not be wise to get out of a trade that has no volatility in favour for one that does anyway because if it is trading flat there are no signals for long or short is it not just guessing or am I wrong on that?
The way used to calculate and plot the candles for Heiken Ashi is differenon than regular candle sticks.
On regular candlestick charts, the candle stick shows : Open, Close, High and Low and each candle is independent and has no relation with the previous candlestick. But Heikin-Ashi candles are different and each candle is calculated and plotted using some information from the previous candle.
If you pull up 2 charts one a regular chart and the other Heiken Ashi put them side by side and compare you will see some candles are different. As usual traders swear by both. I use Heiken Ashi in my opinion they’re better for short term trading, but again you find traders swear by the regular candle sticks for short term. Do a search on both compare them for your self. I think it’s better if you understand both of them.
Gp
I have developed a keen interest in HA candles and would be very interested in hearing both positive and negative cases for using them.