Heiken Ashi is a chart pattern that is used in technical analysis. Heiken Ashi charts are similar to candlestick charts, with the main difference being that Heikin Ashi charts use daily price averages to show an asset's median price movement.
Heiken Ashi charts are based on average values, giving them a smooth appearance. Heiken Ashi charts, according to some traders, are a more accurate measure of an overall trend than candlestick charts.
Heiken Ashi charts are a type of technical analysis that examines an asset's price movements in relation to an overall trend.

Heiken Ashi, a Japanese term meaning "average bar," is a popular type of candlestick charting technique used in financial markets, particularly in technical analysis of stocks, forex, and cryptocurrencies. It aims to filter out market noise and present a smoother representation of price trends.

Unlike traditional candlestick charts that display open, high, low, and close prices, Heiken Ashi charts use modified calculations. Each candle on a Heiken Ashi chart considers the average price of the current period, providing a more balanced view of market trends. The formula incorporates the previous candle's values, making it inherently lagging but effective in capturing the overall trend direction.

Heiken Ashi candles are color-coded to highlight bullish and bearish trends. Typically, bullish candles are represented in blue or green, indicating a strong upward momentum, while bearish candles are red or orange, suggesting a prevailing downtrend.

Traders often use Heiken Ashi charts to identify trend changes, potential reversals, and to filter out short-term fluctuations. The smoothing effect of Heiken Ashi can help traders make more informed decisions based on the dominant market sentiment. While it's not a standalone indicator, incorporating Heiken Ashi analysis into a broader trading strategy can enhance the understanding of price movements and improve trend identification.