Heiken ashi: Heikin-Ashi Technique Overview, Formula, Chart, Strategies

A long hollow Heikin-Ashi candlestick shows strong buying pressure over a two day period. The absence of a lower shadow also reflects strength. A long, filled Heikin-Ashi candlestick shows strong selling pressure over a two day period. The absence of an upper shadow also reflects selling pressure. Small Heikin-Ashi candlesticks or those with long upper and lower shadows show indecision over the last two days. As the price continues to drop, the lower wicks get longer, indicating that the price dropped but was then pushed back up. The emergence of candles with small bodies are signals traders should be aware …