Heinkin-Ashi

[milan2563]

I don't see hollow candles.. Alex for you..any idea how you read the chart?

Thanks All

[ACM]

Re: Heinkin-Ashi

milan2563
You may want to read the article "Using The Heikin-Ashi Technique" published by Dan Valcu in the February 2004 issue of Technical Analysis of Stocks and Commodities.
Alex

Originally posted by milan2563
I don't see hollow candles.. Alex for you..any idea how you read the chart?

Thanks All

[mikejhelms]

Don’t mean to pick nits but in this article Howard Arrington made a minor but valid point regarding the Heikin-Ashi formulation suggested by Dan Valcu and used by eSignal. He noted in determining the values of haHigh and haLow there is no need to include a test of haClose as eSignal does with:

haHigh = Math.max(high(), haOpen, haClose);
haLow = Math.min(low(), haOpen, haClose);

because by definition haClose can never be higher than high() or lower than low().

[mikejhelms]

But then again …

After two and a half years it just dawned on me that I need to qualify the point I made below. Including haClose in the Math.max and Math.min comparison functions is unnecessary only if there is no smoothing of haClose, as Alex makes available in his version of the Heikin-Ashi study. If there is smoothing involved then including haClose is necessary. Hey, what can I say? I don’t like to rush into revisions.

Mike