Heiken Ashi Candles vs Regular Candles in ThinkOrSwim

[csricksdds]

You should be able to notice the difference VISUALLY on these two MSFT Four-Minute Charts (I used 4Min because I could show the whole day verses another time frame but it works on all time frames). The Heikin Ashi is much smoother. I am also using only the Date Time Lines, My AsGoodAsItGets Indicator, and the Murrey Math Pivots. Here is the Heikin Chart with Indicators: http://tos.mx/!4iowTUcP

Can you see the difference?

Regular Candle Chart:

https://imgur.com/a/sEK6ceH

Heikin Ashi Chart:

https://imgur.com/a/wYG1bAo

 

[useThinkScript]

Heikin-Ashi candles offer a simplified way to view price movement, smoothing out the typical market noise by averaging price data over two periods. This makes trends, reversals, and patterns easier to identify compared to traditional candlesticks, which can frequently switch from bullish to bearish and create confusion for traders.

Key Concepts for Heikin-Ashi:​

• Uptrend:
  • Large green candle bodies
  • No lower wicks (suggests strength)
  • Consecutive green candles signal a continuation of the uptrend
• Downtrend:
  • Large red candle bodies
  • No upper wicks
  • Consecutive red candles confirm the trend's strength

Generally, larger candle bodies imply a strong trend, and the absence of wicks emphasizes its intensity (good momentum). There are MANY more Heikin-Ashi patterns. Before using, you must google HA strategy for a deeper understanding, as this is just a basic overview.

https://www.tradingsetupsreview.com/catch-trends-heiken-ashi-candlestick-analysis/#:~:text=go through these-,guidelines,-by example, with

Pros:​

• Trend Detection: Excellent at highlighting clear trends.
• Smoother Visuals: Reduces market noise, helping avoid premature exits from profitable trades.
• Time Frame Versatility: Works across different time frames.

Cons:​

• Lagging Indicator: Since it’s based on averages, it reflects past price action and may not be as useful for quick market movements or day traders.
• Lack of Precision: Heikin-Ashi candles don’t show the exact market price, gaps, or specific bar formations, which some traders rely on.

Which to Choose?​

• Traditional Candlestick Charts: Best for those who need real-time data, price gaps, and detailed patterns.
• Heikin-Ashi: Ideal for traders focusing on longer trends and filtering out short-term price fluctuations.

Incorporating Heikin-Ashi into your trading strategy can be valuable, but it’s important to familiarize yourself with the HA candle patterns to use them effectively.

Heikin_Ashi Candles can be place on your chart in Settings, Appearance, Heikin Ashi.
Here are the other Heikin-Ashi studies and setups on the forum, sorted by popularity:
https://usethinkscript.com/search/1...3&c[nodes][1]=5&c[title_only]=1&o=replies&g=1​

 

[useThinkScript]

Heiken Ashi Candles can be useful for visually depicting trend on the highest of your three timeframes.
To put Heiken Ashi Candles on your chart:

1. click on settings (the gear at the top of your chart)
2. click on appearance
3. in chart type, click on Heiken Ashi


Heiken Ashi Candles......................................................................................Candle Trend Candles

While displaying and understanding trend is essential in all types of trading.
Of equal importance to price action, especially on lower timeframes, is the display of the candlestick patterns that are available in the Candle Trend Candles. For example:

 

[MerryDay]

@fire580

Just because a chartist is using Heiken Ashi candles on his chart, it does not mean that he is painting his candles with the default Heiken Ashi Trend Colors.

@csricksdds uses Heiken Ashi Candles in his Best Trading Chart Setup
But he paints his Heiken Ashi candles with momentum from the TTM Squeeze Indicator.
For his strategy, used on the lower timeframes; momentum can be more responsive than the default lagging heiken ashi trend coloring.

# shared_AsGood_TTM_TrendCandles_2Color
input price = close;
input length = 20;
def K = (Highest(high, length) + Lowest(low, length)) / 2 + ExpAverage(close, length);
def momo = Inertia(price - K / 2, length);
def pos         = momo>= 0;
def neg         = momo< 0;
def up         = momo >= momo[1];
def dn         = momo < momo[1];


def PosUp = pos and up;
def PosDn = pos and dn;
def NegDn = neg and dn;
def NegUp = neg and up;

AssignPriceColor( if Neg and Up then Color.Green else if PosDn then Color.Red else if NegDn then Color.RED else if NegUp then Color.Green else Color.Green);

For users of Heiken Ashi candles to identify overall trend; it is recommended to use the default Heiken Ashi candle colors. The above momentum painting will paint red whenever there is a "lull" in momentum.
This will be a false signal for those using HA candles for confirmation of their long-term trend.

 

[MerryDay]

Heiken-Ashi Watchlist

def HAclose = ohlc4;
def HAopen = CompoundValue(1, (HAopen[1] + HAclose[1]) / 2, (open[1] + close[1]) / 2);
def HAhigh = Max(Max(high, HAopen), HAclose);
def HAlow = Min(Min(low, HAopen), HAclose);

AddLabel(yes, if HAopen > HAclose then "bearish" else "bullish");
AssignBackgroundColor(
if HAopen > HAclose then Color.RED else Color.GREEN);

 

[Risktk1r]

Heiken-Ashi Watchlist

def HAclose = ohlc4;
def HAopen = CompoundValue(1, (HAopen[1] + HAclose[1]) / 2, (open[1] + close[1]) / 2);
def HAhigh = Max(Max(high, HAopen), HAclose);
def HAlow = Min(Min(low, HAopen), HAclose);

AddLabel(yes, if HAopen > HAclose then "bearish" else "bullish");
AssignBackgroundColor(
if HAopen > HAclose then Color.RED else Color.GREEN);

I have a question about this. I copied and installed the script, but I do not get the display you have showing. Is there something I can check? Thanks much for all you do. Mike

 

[useThinkScript]

I have a question about this. I copied and installed the script, but I do not get the display you have showing. Is there something I can check? Thanks much for all you do. Mike

You did not provide enough information to determine where you went astray.

It is unclear, what you mean when you state that

I do not get the display you have showing

Let's discuss the 'display', column by column

Column One is populated by symbols retrieved from Schwab's Market Maker Movers.

To get this column:​

1. click on the watchlist box​

2. click on Public (E-N)​

3. click on Market Maker Move Stocks​

You are now ready to add columns to your watchlist

1. click on the gear icon to the far-right.
2. click on customize
3. type in Description
4. click on Description
5. click on Add Item(s)

Now do it for the next two columns

1. type in Sector​

2. click on Sector​

3. click on Add Item(s)​

1. type in % change​

2. click on % change​

3. click on Add Item(s)​

Column Five *Heiken Ashi Watchlist Column

shared watchlist column link: http://tos.mx/!n1Q0jmdm​

Click here for --> Easiest way to load shared links​

MUST follow the above instructions!​

Name it whatever you want. Make sure you remember what you named it!​

​

​

1. click on the gear icon to the far-right.
2. click on customize
3. type in whatever you named your column
4. click on whatever you named your column
5. click on Add Item(s)

​

A frequent reason for discrepancies in watchlist results is from the timeframe that is set.​

Heiken Ashi Candles are frequently used to identify long-term trend, so for the example above,​

the time frame is set to daily.​

Set yours to whatever works for your strategy.​

​

​

Voilà! Your watchlist now displays what I am showing!

​

Hope this helps​