Heikin-Ashi

This price bar analysis method is used by traders to better identify trending markets and patterns. This technique will alter the Open/High/Low/Close of price bars viewed on the chart. The close will be determined by an average of the OHLC values as opposed to the actual market closing price for each bar. The open is determined by averaging the open and close of the previous price bar.

Heikin-Ashi may be activated from the Charting Preferences tab.

Calculation

Close = (Open+High+Low+Close)/4
Open = [Open (previous bar) + Close (previous bar)]/2
High = Max (High,Open,Close)
Low = Min (Low,Open, Close)