Though Heikin Ashi provides a smoother appearance, it has some restraints as well. Heikin Ashi may be a sort of trading chart that originated in Japan, and it is almost like candlestick charts therein the color of the candlestick denotes the direction the worth is moving.
Every indicator that is based on slowing down the signals does its best on trends only. Heiken Ashi smoothed signals do not allow one to note the reversal in time. Any Heiken Ashi strategy should take into consideration that lagging indicators not only dismiss useless signals to open the trade but also provide you with a late signal for closing the trade. That is why the trader often see the market slowly destroying your profit and afterward, the trader will understand that the trend has already changed.
This indicator does not fit short-term and scalping strategies.
Therefore, to sum up:
- Heikin Ashi candlesticks do not show true prices
- Heikin Ashi charts obscure actual price information
- Heikin Ashi charts may not be responsive enough for day traders or scalpers