/biz/ - Business & Finance

>>8939983
each candle is an average of two days, the current and the previous. As example, if a stock has two green days but had lower lows on both the days the HA candle with be red. When the market is being nuts, red one day, green the next, if you see a flat (small to no body) with large wicks, it is likely a signal of trend reversal.

You're not really hiding price action, you're averaging out to better understand current price relation to the past.

I'm using Ichimoku Cloud, HA candles, RSI, and MACD as my indicators. Has worked pretty well so far. See pic related.

Here is a good online resource: http://stockcharts.com/school/doku.php?id=chart_school:chart_analysis:heikin_ashi