Forex Indicator Heiken Ashi

In Foreign exchange market, you can gain or losing your account if the market price move bearish and bullish. You need to define the trend direction of the forex trend. Each forex participant has different trading system but for most of them, analyze the trading chart is the simplest method. So traders spend their trading time to do technical analysis using chart, indicator, lines, pivot support resistance and many other things.

However, technical approach was made and improved by traders from Japan, they made the candlestick bars. Every trader who use the candlestick chart understand that this trading chart is the best and accurate method to determine the situation or sentiment of the forex market and the psychology of the traders around the world.

Traders from Japan did not stop improving their trading system. They tried to build the trading tools that very accurate, Forex Indicator Heiken ashi chart. With Heiken ashi we can determine the trend direction of the market more accurate and more easier. For most beginner traders they like using this forex indicator because Heiken ashi indicator is more easy to understand.

Heiken ashi indicator form like candlestick chart, but has different calculation formula.

1. Low price defined from one of the high, open and close price which has lowest price.
2. High price defined from the highest price from high, open and close price.
3. Open price defined from the open and closing price of the last candlestick.
4. Close price defined from the average of high, low, close and open price

With above calculation formula, each candlestick from heiken ashi indicator are connected, and this trading indicator is slower than a candlestick chart.