1) How to use Heikin ashi candlestick charts?
• If your goal is to catch longer and persistent trends, then using a Heikin Ashi chart will help you toward that end.
• Trend detection is one of the main functions of this type of charting style. The Heikin Ashi trading style puts an emphasis on persistent trends.
• Small corrections and consolidations are filtered and they are barely visible on the chart.
• You will notice that when the direction changes on a Heikin Ashi graph, the price most likely starts a new move. This helps to distinguish between the potential beginning and the end of a stock.
• Since chart noise is filtered, you basically see the naked trend. Using a trailing stop is a good trade management tool to pursue in a trending market.
• As a result, many traders combine the soothing benefits of the Heikin Ashi chart with a trailing stop indicator to get the most of out a trending market condition.