I am playing around with Heiken-ashi candles on tick/minute charts and am really liking the concept. However, I haven't quite figured out the implications of how the recalculated data points open/close/high/low affect indicators and how interpretation of them can change ex: OBV/VWMACD/RSI/DMI etc. Any input is appreciated.
I can only comment that if you calculate on averaged prices, your indicators will also show "averaged" amounts. How useful that is or how to implement it in your trading, I'll leave to others to comment.
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Heikin is japanese word means average modified word "heiken".... and formula is
HA Close = Average of Open, High, Low, Close
HA Open = Mid-point of previous HA bar
HA High = Highest of High, HA Close, HA Open
HA Low = Lowest of Low, HA Close, HA Open
You should be programmer.. if you wanna dig deep into how to intrepretate into other indicators ..btw it's used for additional indicator for find trend...i think you should use it with your candlestick chart..