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Understanding and Using the Heiken Ashi Indicator in Technical Analysis

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by: Ivan Cavric The Heiken Ashi indicator is a popular tool used in technical analysis to smooth out price data and filter out market noise. Developed by Japanese analyst Goichi Hosoda, the Heiken Ashi indicator can help traders identify trends and make better informed trading decisions. Unlike traditional candlestick charts, which plot the open, high, low, and close (OHLC) prices for a given time period, the Heiken Ashi indicator plots the average price of a security over a given time period. This is done by taking the average of the open, high, low, and close prices and then plotting the resulting value as a new candle on the chart. To calculate the Heiken Ashi candle, the following formulas are used: Heiken Ashi Close (HA-Close) = (Open + High + Low + Close)/4 Heiken Ashi Open (HA-Open) = (HA-Open (previous candle) + HA-Close (previous candle))/2 Heiken Ashi High (HA-High) = max(High, HA-Open, HA-Close) Heiken Ashi Low (HA-Low) = min(Low, HA-Open, HA-Close) One of the main benefits...

Can Trading Futures, Forex Or Stocks Be Addictive?

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By:  Ivan Cavric Real addictions are a very grave matter and while trading doesn’t involve the consumption of any substances, there are those that believe that trading is truly addictive.  The tremendous emotional rushes that most traders experience both prior to placing a trade and while in the middle of a big winner or big loser are an acknowledged part of trading, but are traders truly becoming addicted to trading?   Is there a need for help for traders, or is the situation one where the high percentage of traders that lose money is simply due to them still being in the learning curve and suffering the losses as a normal part of “paying your dues”?  In this article we are going to investigate the matter and determine if there is sufficient evidence to support the hypothesis that trading is indeed addictive. So what constitutes an actual addiction?  There are two categories of addictions, physical dependence and psychological addiction.  There is a c...