Heiken Ashi Candlesticks Explained Simply and Understandably // Heiken-Ashi Candles Tutorial david moadel
welcome to looking at the markets with David Modell today we're going to
explore something that's more advanced it's called high kanashii candlesticks
and there's a lot of information here if you need to rewind the video as many
times as you want that's fine and I'm going to try to break this down and make
it as simple as possible all right high kanashii candlesticks
look like regular candlesticks but are not the same and do not depict the same
information a regular or traditional candlestick shows the open high low and
close of the current time period a high kandachi candlestick is different so
here are the formulas and you don't need to memorize the formulas necessarily but
it's good to be aware of them ok here we go
the close and this is for high kanashii candlesticks the close is an average of
the open high low and close for the current period so basically the high
kanashii candlestick close is the average price of the current period the
open is the average price of the previous candlestick using the open and
close of the previous candlestick divided by 2 the high is the greatest
one of these three numbers the current periods high the current
high kanashii candlesticks open or the current high kenosha candlesticks close
whichever one of those is the biggest number is the high for this candlestick
the low is the least one of these three numbers
the current periods low the current high kanashii candlesticks open or the
current high kenosha candlesticks close whichever one of those is the smallest
number is the low for this candlestick here's the next concept hollow
candlesticks represent up periods in other words the Hika naxi close is above
the high kenosha open filled candles represent down periods in other words
the Hika naxi close is below the high kanashii open if you're accustomed to
using traditional candlestick patterns please note that these patterns do
not necessarily apply to hike annachi candlesticks as we can see from the
formulas a hike annachi candlestick incorporates data from the previous
candlestick which itself incorporates data from the previous candlestick and
so on as a result high kenosha candlesticks
indicate directional trends therefore visually traditional
candlesticks may be better indicators of the precise current price action while
high Konishi candlesticks may be better indicators of overall directional trends
including prior to the current period
seeing many consecutive candles without upper or lower wicks also known as
shadows is more common with high kanashii candlesticks than with
traditional candlesticks for hike annachi multiple consecutive candles
without lower wicks is often viewed as bullish multiple consecutive candles
without upper wicks is often viewed as bearish having a small body and wicks on
the top and bottom can be viewed as an indecision and/or potential reversal
signal all right so we're gonna try to show that on this daily candlestick
chart from Apple and I want to give credit to stockcharts.com all right so
as I mentioned at least in haiku naxi multiple consecutive candles without
lower wicks can be viewed as bullish all right so we can see them here I see one
two three four five six seven eight nine ten eleven consecutive candles with no
or well I see a tiny one here but no or almost no lower wick
they all have upper weights but no or no lower wick that's something you're not
going to see very often with traditional regular candlesticks that many in a row
that look like that all right and that's often construed as bullish we see it
again here okay no lower wicks but they all have upper wicks in these
and again over here and kinda sorta over here but not as starkly and I also
mentioned that multiple in high Kenosha multiple consecutive candles without
upper wicks is often viewed as bearish price action and we can see that here
and continuing a little bit over here and we can definitely see it here here
and starting to happen here and I mentioned that in hike annachi having a
small body and wicks on the top and bottom can be viewed as an indecision
and/or potential reversal signal it doesn't always work but it can for
example we see something like that here and over here and there's definitely a
reversal here and the beginning of a reversal here so those are examples
oh and here's another one it's kind of small all right and we could see a
reversal here all right so that's my introduction to hike annachi
candlesticks they have some things in common and they kind of look like
regular traditional candlesticks but they really are different and they serve
a different purpose I hope this was helpful I hope I was able to break down
a rather advanced and complex system the hike annachi candlesticks system if you
need more help or wants just more assistance or a second set of eyes to
help you with your trading you're investing whether it's stocks options
commodities crypto currencies whatever it might be if you want some assistance
with putting together a trading or investing plan because you really need
to have one you can contact me at any time my email address is David Modell at
gmail.com and if you found this video useful if you liked it please give it a
thumbs up on youtube leave a comment down below and please subscribe to my
youtube channel and hit that bell on youtube so you can receive the latest
updates on my financial educational videos thank you so much I really
appreciate it and I'll talk to you again soon