CHARTTHREAD

Heikin Ashi

Heikin Ashi (Japanese for "average bar") is a chart that looks like candlesticks but is built from averages: each candle's close is the average of the period's open, high, low and close, and its open is the midpoint of the previous Heikin Ashi candle. It smooths trends but does not show the real traded prices.

Because each Heikin Ashi candle averages its period and leans on the one before, trends appear as long runs of one colour and small reversals disappear, but colour changes come late. On Bitcoin’s 4-hour chart on 6 October 2026, the real close was 85,516 while the Heikin Ashi close was 85,684, 168 dollars away from any real trade. Use it to look at a trend; place orders, stops and levels on real candles or bars.

Learn more: bars vs candles.