Why are Heikin Ashi charts used in trading?
Heikin Ashi charts work off average values, which results in a smooth appearance. Some traders consider Heikin Ashi charts to be a more accurate measure of an overall trend than candlestick charts.
Heikin Ashi charts are used as a form of technical analysis to look at an asset’s price movements with regard to an overall trend.
By being able to see the overall trend more clearly, a trader can make a better-informed decision about whether to enter or exit a trade.
This being said, Heikin Ashi charts can be used to the same time values as regular candlestick charts, making them useful as part of a scalping, day or position trading strategy.