Heikin Ashi is Japanese for “average bar.” Each candle on a Heikin Ashi chart is built using averaged values derived from the current and previous candle’s price data, rather than the instrument’s literal open, high, low, and close. The result is a smoother-looking chart that filters out some of the back-and-forth noise of ordinary candlesticks, making a prevailing trend easier to spot at a glance.
Related Reading
See the full comparison with ordinary candlesticks in Heikin Ashi Charts Explained.