Heikin-Ashi candles are a modified version of Candlestick charts which were designed to allow for better identification and analysis of trends. Where standard candlesticks are made up of Open / High / Low / Close information, the Heikin-Ashi candles use a modified formula (which includes references to the previous candle):
- Open = (Open of the Previous Bar + Close of the Previous Bar) / 2
- Close = (Open + High + Low + Close) / 4
- High = Highest Price of the Day
- Low = Lowest Price of the Day
Opening a Heikin-Ashi chart
Heikin-Aski candles can be setup on the standard Candlestick charts settings.
1. Open a standard Candlestick chart
2. Go to the left side Properties panel
3. Locate the Heikin-Ashi checkbox and click it to enable the modified candles.
Once the checkbox is enabled you will see the candles on the chart update to reflect the adjusted formula used by Heikin-Ashi candles.
Scripting Function: HAC()
From Optuma 2.0 and onward, when Heikin-Ashi candles are enabled on a chart, an additional label will appear on the tool tip which displays when you hover over a candle. This better enables you to see if the property is enabled or not.