Tcheik
Member
The standard Heikin Ashi candle representation has an open value that is equivalent to an Exponential Moving Average (EMA) of the Total Price, of which the alpha value of the EMA is fixed at 0.5 (equivalent to an EMA period of 3.0).
In this dynamic version, the period can be changed to whatever value one wishes to use, which also allows one to approximate multi-time-frame analysis, or use the low or high value as a sort of trailing stop-loss. The crossing of the real Close price over the Heikin Ashi open value can also be used as a signal for a change in trend direction.
In this dynamic version, the period can be changed to whatever value one wishes to use, which also allows one to approximate multi-time-frame analysis, or use the low or high value as a sort of trailing stop-loss. The crossing of the real Close price over the Heikin Ashi open value can also be used as a signal for a change in trend direction.
