Heikin Ashi Candlestick Chart vs. Traditional Japanese Candlestick Chart1 min read
There are a couple of differences to notice between the Heikin Ashi Candlestick Chart and Traditional Japanese Candlestick Chart, and they are demonstrated by the charts. Heikin-Ashi has a smoother look, as it is essentially taking an average of the movement. There is a tendency with Heikin-Ashi for the candles to stay red during a downtrend and green during an uptrend, whereas normal candlesticks alternate color even if the price is moving dominantly in one direction.
The price scale is also of note. The current price shown on a traditional candlestick chart also will be the present price of the asset, which matches the price of the candlestick (or current price if the bar hasn’t closed). Since Heikin-Ashi is taking a mean , the present price on the candle might not match the worth the market is really trading at. For this reason, many charting platforms show two prices on the y-axis: one for the calculation of the Heiken-Ashi and another for the present price of the asset.