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Heikin IV Candles Using the Actual Close

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Summary

Heikin IV adapts Heikin-Ashi candles for chart display. It calculates the averaged close and recursive open using Heikin-Ashi-style inputs, then draws the candle with the market’s actual close as its closing value. The high and low are adjusted to cover both the market range and the calculated open and averaged close.

The document also describes a companion trend display intended to make candle direction easier to read. It provides an indicator code sample but no charts, test results, or rules for turning the display into trades. The description says the actual close does not feed back into the Heikin-Ashi calculation, preserving that calculation while changing the displayed candle close. This is a visualization aid; it does not establish predictive value or explain how to validate signals.

Key ideas

  • Heikin IV retains Heikin-Ashi-style calculations for its candle open and averaged close.
  • The displayed candle uses the actual market close instead of the calculated Heikin-Ashi close.
  • Its high and low encompass the market range and the calculated candle body.
  • A companion trend display is described as a way to simplify visual interpretation.
  • The document provides no performance evidence or trading rules.

Tags

Technical indicators

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