At this time, there are many kinds of chart you can find on the internet, one of them that is common, useful and easy to use is heiken ashi chart, it's modified candle stick base on averaging technique. Here is some information about it :
Heiken, it means �Average�.
Ashi , it means �Bar�.
And, this is the formula:
haClose = (Open + High + Low+ Close) / 4
haOpen = (haOpen(previous bar) + haClose(previous bar))/2
haHigh = Maximum(High, haOpen)
haLow = Minimum(Low,haOpen)
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it's base on the averaging technique, so, the signal will be later than the signal of candle sticks, but it is smoother than candlestick's signal and easy for you to indentified the trend and entry point.
There are five primary signals that identify trends and buying opportunities:
� Hollow candles with no lower "shadows" indicate a strong uptrend: let your profits ride!
� Hollow candles signify an uptrend: you might want to add to your long position, and exit short positions.
� One candle with a small body surrounded by upper and lower shadows indicates a trend change: risk-loving traders might buy or sell here, while others will wait for confirmation before going short or long.
� Filled candles indicate a downtrend: you might want to add to your short position, and exit long positions.
� Filled candles with no higher shadows identify a strong downtrend: stay short until there's a change in trend.
These signals show that locating trends or opportunities becomes a lot easier with this system. The trends are not interrupted by false signals as often, and are thus more easily spotted. Furthermore, opportunities to buy during times of consolidation are also apparent.
In MT4 platform we can't seperate hollow and filled candle, just can see like this, you can combine it with many trading system:
