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Heikin Ashi vs Regular Japanese Candlestick Pattern
The regular candlestick patterns have no correlation between two consecutive candles.
However, a Heikin Ashi bar is based on the previous day's low, high, open and closing prices. The bar starts from the middle of the previous day's candle.
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Heikin Ashi Pattern
HEIKIN - Average, ASHI - Pace
Heikin Ashi pattern represents the average pace of the prices. These patterns are useful for getting an idea of the price trend.
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Caution!
The Heikin Ashi candles do not show true prices. Use it as an indicator to understand the market trend
Don't use this pattern for scalping strategies.
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