why HEIKIN-ASHI

In its original Japanese format, heikin-ashi is a technique for visual traders, for those who are artistic and intuitive, who use extensively their right side of the brain. It works very well to filter out the price noise. As a result, trends and reversals are evident on any chart, in any time frame. Further developments made by Dan Valcu, CFTe, the Father of Heikin-Ashi, have improved the technique's accuracy to pinpoint to better reversal probabilities.

LOVE AT FIRST SIGHT

Heikin-Ashi is changing the way you look at charts and trading. In early 2003, I was researching about Ichimoku charts. By chance, as it happens, I came across some outstanding charts showing clear trends and leaving no room for guesswork. It turned out I uncovered a Japanese trading secret: Heikin-Ashi charts. To my surprise, there was near-zero information available in English or other language outside the Japanese. Over the next year, I turned my interest into a passion as I decided to make this visual technique available to all traders and investors outside the tight circle of Japanese traders. The first article on the Heikin-Ashi technique was published in Technical Analysis of Stocks and Commodities (February 2004)  The rest is history.

(Note: The Heikin-Ashi candles were not discovered by Munehisha Honma in the 1700s as several financial information sites indicate on their sites. Its origins are unknown, probably the work of an unknown trader in Japan in the 20th century.)

The surprise and positive feedback from all corners of the world were overwhelming. As a result, financial sites, technical analysis software companies, traders and investors started using this simple but powerful trend assessment technique.

In its original Japanese format, Heikin-Ashi is a technique for visual traders, for those who are artistic and intuitive, who use their right side of the brain extensively.

Traders and investors in today's markets, especially in the West, are very analytical, precise-powerful skills that are managed in the left hemisphere of the brain. The novelty of Heikin-Ashi that was introduced in the 2004 article was the quantification of the Heikin-Ashi candles for more accuracy.

Everybody knows already that most of the 100-plus documented candlesticks patterns are translated in the context (subjective assessment). As with most of the Japanese techniques, candle patterns activate and appeal to the right side of the brain, making it a perfect match for visual traders. My first book on Heikin-Ashi and its applications published in September 2011 went one step further from the visual component. It shows how Japanese candlesticks patterns are removed from your trading using the Heikin-Ashi technique. The second book has been written as a demand for more how-to-use Heikin-Ashi with various known techniques and indicators. Both have been sold to traders and investors in 49 countries and changed many people's trading styles.

Here are a few useful observations to better understand why Heikin-Ashi becomes a strong addition to your trading strategy:

  • Humans use both sides of their brains with different intensity.
  • Today, all markets are more complex and demanding.
  • Most of the current Japanese techniques are for the visual, intuitive traders and investors (users of the right side of the brain).
  • Traders and investors in the West use quantifiable instruments, such as technical indicators  (users of the right side of the brain).
  • Heikin-Ashi is versatil can use  any format, with your

heikin-ashi and you

For you, as a new trader/investor, Heikin-Ashi is

  • Simple, yet Powerful: Heikin-Ashi trend technique has a short learning curve.
  • Immediate Access: You get access to a non-brainer technique to assess trends and reversals.
  • Minimal Investment: Your time and financial investment in Heikin-Ashi are reduced dramatically.
  • Objective: There is no need to memorize and translate complicated and subjective candle patterns open to many "ifs".
  • Versatile: You can use Heikin-Ashi in any format, with your current trading strategy.

As an experienced trader/investor and in addition to the benefits provided for new traders/investors, Heikin-Ashi is a

  • Time, Money and Effort Saver: You can preserve your time and money spent on learning complex Japanese candlestick patterns.
  • Visual and Quantifiable: You can use Heikin-Ashi in both formats, visual and quantifiable, to confirm indications of candlesticks patterns.

Whatever your profile is, the positive impact of this technique is immediate.

Do you have questions?

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