How Is Heikin Ashi Different from Regular Candlesticks?
Let’s break down the difference between Heikin Ashi candlesticks and traditional Japanese candlesticks.
They may look similar at first glance, but once you compare them side-by-side, the distinction becomes obvious.
And since a picture is worth a thousand pips, let’s dive into some actual charts.
First up, here’s a traditional Japanese candlestick chart of GBP/JPY on the daily (1D) timeframe:
(Insert image of regular candlestick chart)
Now, here’s the same GBP/JPY chart, but this time using Heikin Ashi candles:
(Insert image of Heikin Ashi chart)
To make it even clearer, let’s place them side-by-side for a direct comparison:
(Insert side-by-side comparison)
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The chart on the LEFT shows traditional Japanese candlesticks.
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The chart on the RIGHT uses Heikin Ashi candlesticks.
Notice something?
The Heikin Ashi chart on the right appears smoother, with more consistent color and direction.
On a traditional candlestick chart, candles often flip between green and red (up or down), which can sometimes make the trend harder to read—especially during choppy markets.
But with Heikin Ashi, you’ll often see long streaks of same-colored candles:
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Green candles dominate during uptrends.
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Red candles dominate during downtrends.
This visual consistency helps traders more easily spot and follow the overall trend.
Unlike traditional candlesticks—which might change color frequently, even in a strong trend—Heikin Ashi candles offer a cleaner view.
(Seriously, some traditional charts change color more often than Kylie Jenner changes her hairstyle. 😆)
Back to our comparison…
You can clearly see that Heikin Ashi smooths out price fluctuations, filtering out a lot of market noise. That’s why many traders use it to get a clearer picture of the trend.
So, what actually makes Heikin Ashi candles different?
It all comes down to how the candles are calculated and where they start.
If you look closely at the Heikin Ashi chart, you’ll notice something unusual:
Each candle starts from the middle of the previous one—not from where the last candle closed.
This is a major difference from traditional candlesticks, where each candle opens exactly where the last one closed.
The reason Heikin Ashi behaves this way is due to its unique formula, which averages out price data to reflect the "average pace" of price movement.
You’ll learn the math behind this in the next lesson—just in case you want to impress your friends at dinner parties. 😎