Heiken Ashi Bars Compare Smoothed and Price Candle Directions

Summary

This indicator uses Heiken Ashi open and close values to determine each Heiken Ashi candle’s direction, then displays that direction as a colored bar on a price chart. Bar color also compares the Heiken Ashi direction with the direction of the chart’s regular candlesticks: a light bar indicates agreement, while a dark bar indicates disagreement.

The description explains how the visual encoding is formed, but gives no trading rules, performance evidence, parameter guidance, or examples. It does not specify how candle direction is defined in edge cases or whether the bars update during an unfinished candle. Traders can read it as a chart visualization for comparing smoothed candle direction with price candle direction, rather than as a tested entry or exit method.

Key ideas

• The indicator derives direction from Heiken Ashi open and close values.
• It displays Heiken Ashi candle direction as colored bars on a price chart.
• Light bars indicate that Heiken Ashi and regular candle directions agree.
• Dark bars indicate that the two candle directions differ.
• The description provides no performance evidence or complete trading rules.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.