Heikin-Ashi Candlesticks Explained | Heikin-Ashi Trading Strategy for Beginners

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If you’ve already spent some time learning about different trading strategies, you’ve likely come across something referred to as the Heikin Ashi candlestick strategy. So what is this mysterious Heikin Ashi technique and how can it be beneficial to our day-to-day trading activity?

Heikin Ashi candles are actually a trading technique that has been around since the 1700s and was first introduced by Japanese rice merchant Munehisa Homma. However, Heikin Ashi candlesticks differ from regular candlestick charts in that they use two-period averages instead of the high, low, open and closing prices.

As a result, a Heikin Ashi trader can benefit from a smoother graph and the chance to better spot reversals and trends. Hence, you can explore different trading styles with the help of Heikin Ashi, scalping being a prominent one of them. But it’s important to also be aware of the ways in which the Heikin Ashi forex trading strategy is flawed. For example, it can hide certain price data and gaps, which may affect risk.

Watch the full video to see Heikin Ashi candles explained and tell us about your favorite trading strategy in the comment section below.

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