Before Starting This Topic First Of All If You Don,t No About What is Candlesticks ? And What Are The different Types Of Candlestick? So Please Check Our Blog on Understanding Candlesticks Patterns…!!!
TODAY WE WILL TEACH YOU ABOUT HOLLOW CANDLESTICKS & HEIKIN ASHI( ONE OF THE MOST POPULAR CANDLESTICKS VIEW)
ABOUT HOLLOW CANDLESTICKS …!!!
Different types of candlesticks representation
There are two types of candlesticks, hollow candlesticks and filled candlestick. The hollow candlesticks indicate that prices moved higher after the open. Conversely, the filled candlestick conveys that prices moved lower after the open.
Candlesticks also tell us about the strength of a trend in the market. The hollow candlesticks tell us that the trend is strengthening as prices move higher after the open. On the other hand, filled candlesticks tell us that a trend is weakening as prices move lower after the open.
The shape of the Hollow candlesticks
The hollow candlesticks also convey fruitful information through their appearances.
- A long hollow body of a hollow candlestick suggests that prices moved significantly higher in a single trading day. It tells that buying pressure is enough to push the candle higher.
- A Doji (a line across the middle of the shadow) suggests that opening and closing prices are at the same or almost at the same level. It usually tells a balanced market at that price.
Shadows of the Hollow candlesticks
Shadows of a candlestick, also known as wicks, indicate how far the prices moved away from open and close. The shadows or wicks of a Hollow candlestick may mean different things such as:
- A Hollow candle with a long shadow above signals bearish sentiment in the market. It tells traders that there is very little support at a higher level.
- A Hollow candle with a short shadow above indicates bullish sentiment in the market. It tells traders that the high was near to the close.
- A Hollow candle with no shadows above suggests a very strong bullish trend in the market because prices moved high all day and closed at the highest high.
ABOUT HEIKIN ASHI…!!!
Most day traders prefer to use candlestick charts for their analysis, but most have not heard of the Heikin Ashi candlesticks.
Heikin Ashi candlesticks have recently gained popularity by day traders to identify a given trend more easily.
Heikin Ashi (sometimes spelled Heiken Ashi candlesticks) are a special type of Japanese candlesticks that are calculated from a combination of current and previous session’s price data.
The term “Heikin Ashi” simply means “average bar” in Japanese. Heikin Ashi charting technique was developed in the 1700s by a Japanese trader called Munehisa Homma.
Importance of Heikin Ashi candlesticks
Heikin Ashi charts make candlestick charts more readable for traders who want to know when to get out of a trade when the trend weakens and when stay in and ride a strong trend.
They are a modified way of displaying data on your candlestick chart, most notably the ability to smooth out volatility of a stock or other financial instruments, allowing traders to build more complex trading strategies.
Typical candlestick charts will both display how volatile the markets were in a particular candlestick itself and the overall trend.
Heikin Ashi charts filter the noise and smooth out the price action on a chart by showing values using averages to create something that looks very similar to the candlestick.
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Sir what’s moving average we can use with the heikin Ashi candlesticks to identify the trend with confirmation
don’t worry we will cover all these topics about moving average,RSI and all the indicators keep visiting on daily basis and ask your doubts directly with us thanku