What are Heikin Ashi candles?
In one line: Heikin Ashi is a chart type whose candles are built from averages of price, which smooths out noise so trends are easier to see but hides real prices.
How each candle is built
"Heikin Ashi" is Japanese for "average bar." Each candle uses the real candle and the Heikin Ashi candle before it:
- Close = (open + high + low + close) ÷ 4
- Open = (last HA open + last HA close) ÷ 2
- High = the highest of the real high, HA open and HA close
- Low = the lowest of the real low, HA open and HA close
A simple example
A real candle opens at 100, goes up to 104, down to 99 and closes at 103.
- HA close = (100 + 104 + 99 + 103) ÷ 4 = 101.5
- Say the last HA candle opened at 98 and closed at 100. HA open = (98 + 100) ÷ 2 = 99
So the HA candle runs from 99 to 101.5. The real close was 103. The HA candle shows the direction, not the price you could have traded at.
What it does well
In a strong uptrend, HA tends to show a row of green candles with little or no lower Wick. In a downtrend, a row of red ones. Small mixed candles hint the Trend is pausing.
That makes it easy to see "who's in control" at a glance. Some traders keep HA on a second chart just for that.
Why it matters
The average makes each candle lag a little. It also hides the real open and close. A real candle body closing past a level is a key signal in our method. HA can't show you that, because its "close" is an average.
A common mistake
Placing orders or testing a strategy on HA prices. The prices on an HA chart aren't real trade prices. A strategy tested on them can look much better than it would have been in real life.
If you like HA, use it to judge direction, then switch to normal candles to plan your entry, stop and target.
Our Heikin Ashi vs candlestick comparison goes deeper, and how to read candlestick charts covers the real thing.
Questions
Are Heikin Ashi candles accurate?
They're accurate averages, but not real prices. The HA close is usually not the price the market actually closed at.
Is Heikin Ashi good for beginners?
It can make trends easier to see. But learning normal candles first matters more, because that's where real prices and real closes are.
Does TradingView have Heikin Ashi?
Yes. Pick it from the chart type menu at the top of the chart.
Want the next step? We'll walk you through it.
Four free lessons by email, one every few days — each with a 10-minute exercise on a real chart.
Send Me the Free Lessons 4 short emails · No spam · Unsubscribe anytimeOr see the whole method, step by step:
See What’s Inside the Course Try everything free first. Decide when you're ready. · Open the free chart tool (works in the TradingView phone app)One chart idea a day, in plain English. Follow along: