This article has been translated from English to Gen Z Slang.

“Heikin Ashi” is like that artsy filter on your fave photo app but for stock charts; it’s vibin’ pretty close to your standard Japanese candlestick charts at first glance. 🎋✨

But wait, there’s a plot twist, fam: it’s all about how them candlesticks get calculated and plotted on the chart.

They’re sliding in with the average ranges to pin down the candle deets, which, let’s be real, makes that chart smoother than your latest TikTok dance moves and gives you a clearer shot at spotting where the market’s trending. 💃📊

Heikin Ashi switches it up from the OG Japanese candlesticks by factoring in the prior session’s open and close for the new open. This plot twist pretty much deletes any awkward gaps between bars, keeping it all sleek. 👌

These bad boys are your go-to for cutting through market noise. 📉🔇

The Heikin Ashi chart looks like a visual sponsor for chill vibes, with red bars showing the low days, and green bars flaunting the high days. 🌈📈

Heikin Ashi Chart Example

How to Trade Heikin Ashi

Hollow candles are like your glow-up, signaling an uptrend, and if they’re big, it’s like they’re having a major good hair day—super strong uptrend. 💁‍♂️✨

Filled candles are that real talk about a downtrend, and the bigger they are, the stronger that downtrend tea is being spilled. ☕🔻

How to Calculate Heikin Ashi

Open = (Open of previous bar+Close of previous bar)/2
High = maximum of High, Open, or Close (whichever is highest)
Low = minimum of Low, Open, or Close (whichever is lowest)
Close = (Open+High+Low+Close)/4