Technical Analysis Challenge: Discover advanced candlestick charts
Candlestick charts are frequently viewed as the most informative and indispensable tool for technical analysis among the commonly used chart types. In addition to traditional candlesticks, we are excited to introduce two advanced candlestick chart types that can further enhance your analysis.
How do these advanced candlesticks work? What sets them apart from traditional candlesticks? Let's take a closer look and find out!
Heikin-Ashi chart
- Similar to a simple moving average, Heikin-Ashi candles aim to reduce the price volatility typically observed in traditional candlestick charts, making it easier to help detect trends. This feature makes it a valuable tool for trend analysis.
- The term "Heikin-Ashi" means "average bar" in Japanese, and this technique shares some similarities with standard candlestick charts but uses a modified formula of close-open-high-low (COHL):
- Heikin-Ashi provides traders with a smoother look at price movements, essentially taking an average movement. There is a tendency with Heikin-Ashi for the candles to stay red during a downtrend and green during an uptrend, whereas normal candlesticks alternate colors even if the price is moving dominantly in one direction.
- The Heikin-Ashi technique can be used with other candlestick charts to spot market trends and forecast future prices when trading securities.
Hollow candle chart
- Hollow candlesticks are a type of chart that offers traders more information on trading charts and helps them sense when bullish or bearish trends are forming based on a combination of hollow or solid candles.
- Hollow candlesticks use color and fill attributes to show price behavior:
When a candle is SOLID, it means that the current closing price is lower than the same period's open price.
When a candle is HOLLOW, it means that the current closing price is higher than the same period's open price.
- The candle's color compares the current closing price with the previous candle's closing price:
Green candles mean that the current closing price is higher than the previous candle's closing price.
Red candles mean that the current closing price is lower than the previous candle's closing price.
Let's discuss
Share your thoughts about which chart type you find most useful and why. You'll have a chance to win a $1 cash reward! Engage in meaningful conversations with other traders. Don't miss out on this opportunity!
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only.
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Elvis Wang : Switching between Heikin-Ashi for overall trend, and hollow candlesticks for day-to-day price movements
butter : y r the green kandles aways hollow
103859386 : From there or how can I download this picture. I only buy AMC GME.FUTU.BABA shares. I only trade for a short time! thank you!
EmmaR09 103859386 : Hi, you may find your answer here: Technical Analysis Challenge: How to choose stock charts for your needs?