Introduction

The key element of the Heikin-Ashi technique is that it reveals more clearly the trend that the market develops, therefore, it generates patterns or signals easier to detect on the charts.

I should mention. that among the main aspects of the signals of the Heikin-Ashi tool are; the strength of the trend and the level of reversal that runs in the trend, and visually you can easily detect three situations namely; 1) the appearance of the strong bullish candle, 2) the indecision candle, and 3) the strong bearish candle.

To illustrate the above, I took a screenshot of the price action for BCT/USDT.

Screenshot taken from TradingView.com portal

By detailing the image, you can clearly see the three situations already indicated, in the case number 1 (one): we can see that there is a wick on the upper segment of the body of a typical uptrend candle.

In the case number 2 (two): you can see wicks at both the upper and lower ends which orientates the formation of a candlestick of indecision, and finally in the case number 3 (three): you can see that there is a wick below the lower segment of the body of a typical downtrend candlestick.

From my perspective one of the elements that causes greater biases when operating the market is precisely the false signals generated by Japanese candlesticks, mainly due to the implicit noise in the chart with the presence of complicated appearance and distorted drawings.

Screenshot taken from TradingView.com portal

In summary, the candles, Heikin-Ashi can improve our performance in the trading because they exhibit a very smooth, and therefore if the market then a pause and sidebar likely accumulation to generate any area of indecision in the market, and if you are then you begin to create a training row of candles without shades lower, this can be interpreted as an excellent opportunity to enter the purchase.

OBSERVATION:

The cover image was designed by the author: @lupafilotaxia, incorporating image background: Source Screenshot taken from TradingView.com portal