Heikin Ashi Candle Patterns -

| Signal | What you see | Action | | :--- | :--- | :--- | | | A green candle appears after a series of red candles or Dojis. | Go Long | | Hold Long | Consecutive green candles with no lower wicks . | Stay in trade. | | Exit Long | A green candle with a long upper wick or a Doji . | Take profits. | | Sell Entry | A red candle appears after a series of green candles or Dojis. | Go Short | | Hold Short | Consecutive red candles with no upper wicks . | Stay in trade. | | Exit Short | A red candle with a long lower wick or a Doji . | Cover position. | The "Hidden" Danger (Don't skip this) Warning: Heikin Ashi candles are lagging indicators.

Because they use averaged data, the current candle's open/close is not the real market price. heikin ashi candle patterns

This ingenious charting technique doesn't just plot price; it averages it. By modifying the open, high, low, and close values using a specific formula, Heikin Ashi filters out the market volatility to give you a crystal-clear picture of the trend. | Signal | What you see | Action

If you are tired of getting faked out by sideways markets, switch to Heikin Ashi. It will keep you in winning trades longer and kick you out of losing trades faster. Just remember: | | Exit Long | A green candle