Hi everyone! It's a privilege to participate in another week of the new season. I want to congratulate @reddileep on his appointment as a professor in the academy. And I must comment that this topic really got me interested in researching aspect of trading I have ignored all while long. https://cdn.steemitimages.com/DQmdGGSYSmGHnyTVwoNoL9uxH1gLeY3V4z29cbmJRpEM5oU/reddileeep.jpg ---

1. Define Heikin-Ashi Technique in your own words.

https://steemitimages.com/700x0/https://cdn.steemitimages.com/DQmTCN7gHBUK1uqyasYEmTCNqJv9Cr1yQ3tWpcthmNLFVJa/hk.jpg The Heikin-Ashi technique is a type of candle representation of prices. The strength lies in its ability to help traders recognize and monitor trends easily. The word heikin ashi is a Japanese word which means 'average bar', the chart was given this name because of its method of constructing candles on the chart. Unlike the conventional Japanese candle sticks which begins the opening of a new candle from the end of the previous candle's end, Japanese candles starts from the center or middle of the previous candle's body. ---

2. Make your own research and differentiate between the traditional candlestick chart and the Heikin-Ashi chart. (Screenshots required from both chart patterns)

The traditional candlestick chart and Heikin-Ashi chart look very similar expecially to the untrained eyes however, a number of differences exist between them, these differences are factors considered by traders to know which of them to employ in performing his speculations of a market. Differences between Traditional Candlestick and Heikin-Ashi Charts
https://steemitimages.com/600x0/https://cdn.steemitimages.com/DQmVYGWXmNuUMNchBUTjH6oKbT8rT3daPbECtnGskb2NzBi/candle1.jpg OPENING OF CANDLE The opening of a traditional candlestick is at the end of the previous candlestick. However the Heikin-Ashi candle stick begins at the center of the previous candlestick's body. The formula for deriving the beginning of a new candlestick is averaging the open and close of the previous candle. Mathematically: CHART NOISE Traditional candlestick do not make any calculation or adjustment to the data it displays on the chart. It plainly displays price movement in time hence there is presentation of noises. However, the heikin-ashi chart makes calculations and make adjustments to the data it displays. The heikin-ashi candlestick chart not only displays price but as well make appreciation of trends easier with less noise displayed. In addition, the heikin-ashi chart does not record minor price changes which adds to noises diplayed in the traditional candlestick chart. EASE OF SPOTING PATTERNS It is easier to spot patterns such as an uptrend or a downtrend in a heikin-ashi compared to a traditional candlestick. Uptrend, downtrend, reversals are all easier to spot in an heikin-ashi candlestick chart compared to spotting them in a tradition candlestick chart pattern. PROFESSIONALISM A lot of technical knowledge is required to read, understand and utilize information conveyed through a traditional candlestick. But the Heikin-Ashi candlestick is easier for new traders. However, not all information are displayed on the heikin-ashi chart, one of such is gap representation. Also, minor changes in prices are not reflected on the heikin-ashi candlestick. ---

3. Explain the Heikin-Ashi Formula. (In addition to simply stating the formula, you should provide a clear explanation about the calculation)

Unlike the traditional candlestick pattern which are independent of each other, the heikin-ashi candle stick is related to the previous candlestick.

TO CALCULATE THE OPENING OF A NEW HEIKIN-ASHI CANDLESTICK The opening of a heikin-ashi candlestick is derived from the average of the opening and closing of the previous candlestick. Open = AVERAGE (OPEN, CLOSE of Previous Candlestick) || SUM (OPEN, CLOSE) / 2
TO CALCULATE THE HIGH OF THE HEIKIN-ASHI CANDLESTICK The high of a heikin-ashi candlestick is equals to the maximum value of either the high, open or close of the current candlestick. High = MAX VALUE (HIGH | OPEN | CLOSE of Candle)
TO CALCULATE THE LOW OF THE HEIKIN-ASHI CANDLESTICK The minimum value of the low, open or close point of a candlestick represents its low. Low = MIN VALUE (LOW | OPEN | CLOSE of Candle)
TO CALCULATE THE CLOSE OF THE HEIKIN-ASHI CANDLESTICK The sum of the open, high, close and open of a candlestick divided by four represents the close of an heikin-ashi candlestick. Close = SUM (OPEN, CLOSE, HIGH, LOW) / 4

4. Graphically explain trends and buying opportunities through Heikin-Ashi Candles. (Screenshots required)

https://steemitimages.com/500x0/https://cdn.steemitimages.com/DQmREUqWUmnnSj4pEYmCuHYuP1Ph8Sj1o26q9vVibkWuCxX/kandux.jpg

doji

https://steemitimages.com/700x0/https://cdn.steemitimages.com/DQmfWUpXYhDsAUBXgQ5b423feCmbWFQzjXjwZPDJC6AcZ1H/hitz.jpg

5. Is it possible to transact only with signals received using the Heikin-Ashi Technique? Explain the reasons for your answer.

6. By using a Demo account, perform both Buy and Sell orders using Heikin-Ashi+ 55 EMA+21 EMA.

BUY ORDER

https://steemitimages.com/700x0/https://cdn.steemitimages.com/DQmXqAmBgZUds9QJHPssdyRezfYiFGCGBSYRwqwNxYW613M/hty.jpg

SELL ORDER

https://steemitimages.com/700x0/https://cdn.steemitimages.com/DQmSc53TtbS4ZZuuWLCQ6QKArgioazeegmGTcD4fdjRQPCy/sell.jpg

Conclusion