5 Golden rules to master the Heiken Ashi on Olymp Trade

(Last Updated On: September 12, 2022)

Heiken Ashi is a candlestick chart that you can easily find on the Olymp Trade. the Heiken Ashi is one of the most trusted and accurate charts that I have ever seen. In this article, I will share the basics and how to read the Heiken Ashi chart properly on the Olymp trade.

 

What is Heiken Ashi 

Heiken Ashi also known as Heiken – Ashi is a candlestick chart most popular for giving accurate signals by reducing the market noise and fluctuations. this chart was developed in Japan by a rice trader “Munehisa Homma”. the word Heiken means average or balance and Ashi means foot or bar.

This candlestick chart is very much different from the traditional chart as it cuts the market noise and gives a clear picture of the trend.

The normal candlestick is made from the composition of high-open – low – close with a simple calculation. however, Heiken Ashi uses a modified formula.

Close: 1 /4 ( open + high + low + close)

Open: 1/2 ( Previous open + Previous close )

High: Max [High, Open, Close]

Low: Min [Low, Open, Close]

 

How to configure Heiken Ashi on Olymp Trade

 

First of all, log in to your Olymp Trade account. in case you don’t have one click here. once you have logged in click on the chart button.

 

 

That’s it!! the chart will be activated on your account. you can change the timer of the chart. just click the time button.

 

How to read Heiken candles

Reading Heiken Ashi candles is much easier than reading traditional candles.

 

  • Long Green bodied candles: When you see good bullish or green-bodied candles with no wick at the close. is a signal of a strong bullish trend.

 

 

 

  • Long red-bodied candles: Similarly, when you see a good bearish candle or red candle with no wick at open is a signal of a strong bearish trend.

 

 

  • Consolidation of candles: When you see a candle with a big wick and a small body. It signals a possible trend reversal.

 

 

  • Weak candles: when you see small candles after a trend it signals the asset trend is getting weaker and a trend reversal is highly possible. for example, when we see small candles after a bullish trend it signals the upcoming trend reversal and vice versa.

 

 

  • Big Wick candles: When you see big wick candles with a small body after a strong trend it signals that trend is getting weaker and a trend reversal is highly possible.

 

 

FAQ

Is Heiken Ashi accurate?

Heiken Ashi is one of the most reliable charts that give you great results. unlike traditional candlestick, it reduces market noise and reduces small corrections which helps you give accurate results and signals.

 

Which indicator is best with Heiken Ashi?

You can use multiple indicators with Heiken Ashi some of them are RSI, Bollinger bands, moving average, Stochastic & more. you can also combine the chart with support and resistance for best results.

 

What is the formula for Heiken Ashi?

 

The normal candlestick is made from the composition of high-open – low – close with a simple calculation. however, Heiken Ashi uses a modified formula.

Close: 1 /4 ( open + high + low + close)

Open: 1/2 ( Previous open + Previous close )

High: Max [High, Open, Close]

Low: Min [Low, Open, Close]

 

Is Heiken Ashi good for day trading?

The Heiken Ashi can ideally be used for short-term trading strategies whether day trading or swing trading. It can be used in any time frame or market.

 

 

 

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