2) How to Interpret Heikin Ashi Candlestick
• Heikin-Ashi charts help traders view trends and spot potential reversals. Therefore, they are most applicable to trend traders.
• The HA candles change dramatically in appearance when a strong trending move is underway relative to pullbacks. Upward trending moves typically have long upward candles with very little or no lower shadows.
• The shadows are the thin lines that extend out from either side of the fat part of the candle – called the real body. These shadows represent the maximums and minimums of the Low, Open, Close and High.
• When a strong uptrend is underway, and the buying is aggressive, the lower shadows (sticking out the bottom of the real bodies) will not typically appear.