Trend visualisation
Heikin Ashi
Averaged candles that smooth noise and make trends easier to read.
What is Heikin Ashi?
Heikin Ashi ('average bar' in Japanese) is a modified candlestick that averages price data to filter noise and make trends visually clearer. Instead of raw open/close, each candle is built from averaged values, producing smoother runs of colour.
How it works
Each Heikin Ashi candle uses the average of the current bar's OHLC and the prior HA candle's open/close, smoothing the series. Long runs of same-colour candles with small wicks indicate a strong trend; small bodies with wicks on both sides hint at indecision or a turn.
How traders use it
- ▸Trend riding: stay in while candles stay one colour.
- ▸Exits: a colour change or large opposite wick warns of a turn.
- ▸Noise filter: fewer false signals than raw candles.
- ▸Confirmation: pair with momentum or structure.
Build Heikin Ashi without code in Algovex
Heikin Ashi is available as a node/source in Algovex, build trend-persistence or colour-change rules, backtest, and export. Note HA candles lag raw price, so size stops on real price.
Key parameters
| Parameter | What it does |
|---|---|
| source | Underlying OHLC used to build the HA series. |
Frequently asked questions
Are Heikin Ashi candles better than normal candles?
They're not better, just different: Heikin Ashi smooths price to make trends clearer and filter noise, at the cost of hiding the true open/close and lagging real price. Many traders use them for trend visualisation and raw candles for execution. Algovex supports both.