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:
For you, as a new trader/investor, Heikin-Ashi is
As an experienced trader/investor and in addition to the benefits provided for new traders/investors, Heikin-Ashi is a
Whatever your profile is, the positive impact of this technique is immediate.
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