> ## Documentation Index
> Fetch the complete documentation index at: https://learn.algopilot.com/llms.txt
> Use this file to discover all available pages before exploring further.

# Heikin Ashi

**What is it?**\
Heikin Ashi is a candlestick charting technique that smooths out price action to highlight trends, making it easier to spot sustained moves. It’s like a noise filter for regular candlestick charts.

**How is it used?**

* **Trend identification**: Consecutive green (bullish) or red (bearish) Heikin Ashi candles indicate strong trends.
* **Reversal signals**: Small-bodied candles with wicks on both ends often signal trend pauses or reversals.
* **Filtering noise**: It reduces false signals in choppy markets.

**How is it calculated?**\
Heikin Ashi candles are derived from regular price data (open, high, low, close) but use modified formulas:

* **Close**: (Open + High + Low + Close) / 4
* **Open**: (Previous Heikin Ashi Open + Previous Heikin Ashi Close) / 2
* **High**: Max(High, Heikin Ashi Open, Heikin Ashi Close)
* **Low**: Min(Low, Heikin Ashi Open, Heikin Ashi Close)

<sub>The above content is designed for informational purposes only, and is explicitly not investment advice. Algo Pilot is a US based technology company and not a bank, broker-dealer, or RIA. As such, Algo Pilot LLC does not provide investment advice and is not a member, SIPC. Brokerage services offered by 3rd parties are not directly affiliated with Algo Pilot LLC, and Algo Pilot users may choose the broker relationship that they desire.</sub>