{"id":3843,"date":"2024-10-24T06:25:03","date_gmt":"2024-10-24T06:25:03","guid":{"rendered":"https:\/\/apex-aiexperts.com\/?p=3843"},"modified":"2024-10-24T06:25:03","modified_gmt":"2024-10-24T06:25:03","slug":"limitations-of-heikin-ashi","status":"publish","type":"post","link":"https:\/\/apex-aiexperts.com\/ja\/limitations-of-heikin-ashi\/","title":{"rendered":"\u30cf\u30a4\u30ad\u30f3\u30fb\u30a2\u30b7\u306e\u9650\u754c"},"content":{"rendered":"<p>What are the limitations of Heikin Ashi?<\/p>\n\n\n\n<p>Unfortunately, Heikin Ashi is not the holy grail.<\/p>\n\n\n\n<p>Heikin Ashi definitely ain\u2019t no&nbsp;<a href=\"https:\/\/www.youtube.com\/watch?v=2Vv-BfVoq4g\" target=\"_blank\" rel=\"noreferrer noopener\">Ed Sheeran song<\/a>.&nbsp; It ain\u2019t perfect.<\/p>\n\n\n\n<p>Just like any other tool used for technical analysis, Heikin Ashi is useful but it does have&nbsp;<strong>some weaknesses or limitations<\/strong>.<\/p>\n\n\n\n<p>Let\u2019s go over what these limitations are.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Heikin Ashi candlesticks do not show true prices.<\/h2>\n\n\n\n<p>While the traditional Japanese candlesticks are derived from the actual prices, Heikin Ashi candlesticks are NOT.<\/p>\n\n\n\n<p>Because the Heikin Ashi candlesticks are averaged,&nbsp;<strong>they do NOT show the exact open and close prices for a particular time period<\/strong>.<\/p>\n\n\n\n<p>Let\u2019s show an actual example.<\/p>\n\n\n\n<p>Here\u2019s a&nbsp;<strong>\u30d8\u30a4\u30ad\u30f3\u30fb\u30a2\u30b7\u30fb\u30c1\u30e3\u30fc\u30c8<\/strong>&nbsp;of EUR\/USD on the daily (1D) timeframe:<\/p>\n\n\n\n<figure class=\"wp-block-image\"><a href=\"https:\/\/bpcdn.co\/images\/2020\/04\/19171152\/heikin-ashi-open-and-close-price-example.png\" target=\"_blank\" rel=\"noreferrer noopener\"><img decoding=\"async\" src=\"https:\/\/bpcdn.co\/images\/2020\/04\/19171152\/heikin-ashi-open-and-close-price-example-780x442.png\" alt=\"Heikin Ashi does not show true prices\" class=\"wp-image-174295\"\/><\/a><\/figure>\n\n\n\n<p>Focus on the last candlestick. A couple of things to notice:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The candle is\u00a0<strong>\u8d64<\/strong>. Which means the candle closed\u00a0<em>\u4e0b\u3052\u308b<\/em>\u00a0than it opened.<\/li>\n\n\n\n<li>Its open price was<strong>\u00a01.09005<\/strong>.<\/li>\n\n\n\n<li>Its close price was\u00a0<strong>1.08531.<\/strong><\/li>\n<\/ul>\n\n\n\n<p>Now let\u2019s look at a daily chart of EUR\/USD using a&nbsp;<strong>traditional Japanese candlestick chart:<\/strong><\/p>\n\n\n\n<figure class=\"wp-block-image\"><a href=\"https:\/\/bpcdn.co\/images\/2020\/04\/19171536\/regular-candlestick-open-and-close-price-example.png\" target=\"_blank\" rel=\"noreferrer noopener\"><img decoding=\"async\" src=\"https:\/\/bpcdn.co\/images\/2020\/04\/19171536\/regular-candlestick-open-and-close-price-example-780x442.png\" alt=\"Regular candelstick chart versus Heikin Ashi\" class=\"wp-image-174296\"\/><\/a><\/figure>\n\n\n\n<p>Focus on the last candlestick.&nbsp;A couple of things to notice:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The candle is\u00a0<strong>\u30b0\u30ea\u30fc\u30f3<\/strong>.\u00a0Which means the candle closed\u00a0<em>\u3088\u308a\u9ad8\u3044\u00a0<\/em>than it opened.<\/li>\n\n\n\n<li>This is REALITY. The EUR\/USD pair actually ended up for the day. Compare this to Heikin Ashi, where it showed a red candle.<\/li>\n\n\n\n<li>Its open price was<strong>\u00a01.08373.<\/strong><\/li>\n\n\n\n<li>Its close price was\u00a0<strong>1.08706.<\/strong><\/li>\n<\/ul>\n\n\n\n<p>Let\u2019s review what we just observed:<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><tbody><tr><td><strong>Chart Type<\/strong><\/td><td><strong>Last Candlestick<\/strong><\/td><td><strong>Open Price<\/strong><\/td><td><strong>\u30af\u30ed\u30fc\u30ba\u4fa1\u683c<\/strong><\/td><\/tr><tr><td>Heikin Ashi Candlestick<\/td><td>Red<\/td><td>1.09005<\/td><td>1.08531<\/td><\/tr><tr><td>Traditional Candlestick<\/td><td>Green<\/td><td>1.08373<\/td><td>1.08706<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p>Do you see the difference?<\/p>\n\n\n\n<p>Even though the \u201creal\u201d candle closed green, Heikin Ashi is signaling that EUR\/USD is still in a downtrend.<\/p>\n\n\n\n<p><strong>Make sure you know what price you\u2019re looking at.&nbsp;<\/strong><\/p>\n\n\n\n<p>Since you can\u2019t see the&nbsp;<strong>\u5b9f\u969b<\/strong>&nbsp;open and close prices, some traders prefer to use a Heikin Ashi chart as more of an&nbsp;<strong>INDICATOR<\/strong>&nbsp;rather than a price chart itself.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Heikin Ashi charts obscure actual price information.<\/h2>\n\n\n\n<p>This limitation is related to the first one.<\/p>\n\n\n\n<p>The closing price is considered important for many traders, but&nbsp;<strong>the actual closing price is NOT displayed on a Heikin Ashi candlestick.<\/strong><\/p>\n\n\n\n<p>As a review, here\u2019s how the Close price is calculated:<\/p>\n\n\n\n<pre class=\"wp-block-preformatted\">Close = (Open+High+Low+Close) \/ 4<\/pre>\n\n\n\n<p>You only see the averaged closing price.<\/p>\n\n\n\n<p><strong>Make sure you\u2019re aware of the actual closing price, and not just the averaged value.<\/strong><\/p>\n\n\n\n<p>This can be done easily by switching back to a regular Japanese candlestick chart.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Heikin Ashi charts may not be responsive enough for day traders or scalpers.<\/h2>\n\n\n\n<p>Since Heikin Ashi candlestick requires price information&nbsp;<strong>from two periods<\/strong>, a trade setup takes&nbsp;<strong>longer to develop<\/strong>.<\/p>\n\n\n\n<p>This isn\u2019t really an issue for longer-term traders, like&nbsp;<a href=\"https:\/\/tradecenterfx.com\/swing-trading\/\" target=\"_blank\" rel=\"noreferrer noopener\">swing traders<\/a>&nbsp;\u307e\u305f\u306f&nbsp;<a href=\"https:\/\/tradecenterfx.com\/position-trading\/\" target=\"_blank\" rel=\"noreferrer noopener\">position traders<\/a>, who have more time to let their trades develop.<\/p>\n\n\n\n<p>But it might be an issue for shorter-term traders like&nbsp;<a href=\"https:\/\/tradecenterfx.com\/day-trading\/\" target=\"_blank\" rel=\"noreferrer noopener\">day traders<\/a>&nbsp;\u305d\u3057\u3066&nbsp;<a href=\"https:\/\/tradecenterfx.com\/scalping\/\" target=\"_blank\" rel=\"noreferrer noopener\">scalpers<\/a>.<\/p>\n\n\n\n<p>For example, scalpers need to exploit quick price moves so they may find that Heikin Ashi charts are not responsive enough for their type of trading.<\/p>","protected":false},"excerpt":{"rendered":"<p>What are the limitations of Heikin Ashi? Unfortunately, Heikin Ashi is not the holy grail. Heikin Ashi definitely ain\u2019t no&nbsp;Ed Sheeran song.&nbsp; It ain\u2019t perfect. Just like any other tool used for technical analysis, Heikin Ashi is useful but it does have&nbsp;some weaknesses or limitations. Let\u2019s go over what these limitations are. Heikin Ashi candlesticks do not show true prices. While the traditional Japanese candlesticks are derived from the actual prices, Heikin Ashi candlesticks are NOT. Because the Heikin Ashi candlesticks are averaged,&nbsp;they do NOT show the exact open and close prices for a particular time period. Let\u2019s show an actual example. Here\u2019s a&nbsp;Heikin Ashi chart&nbsp;of EUR\/USD on the daily [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[63,62],"tags":[],"class_list":["post-3843","post","type-post","status-publish","format-standard","hentry","category-heikin-ashi","category-summer-school"],"_links":{"self":[{"href":"https:\/\/apex-aiexperts.com\/ja\/wp-json\/wp\/v2\/posts\/3843","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/apex-aiexperts.com\/ja\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/apex-aiexperts.com\/ja\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/apex-aiexperts.com\/ja\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/apex-aiexperts.com\/ja\/wp-json\/wp\/v2\/comments?post=3843"}],"version-history":[{"count":1,"href":"https:\/\/apex-aiexperts.com\/ja\/wp-json\/wp\/v2\/posts\/3843\/revisions"}],"predecessor-version":[{"id":3844,"href":"https:\/\/apex-aiexperts.com\/ja\/wp-json\/wp\/v2\/posts\/3843\/revisions\/3844"}],"wp:attachment":[{"href":"https:\/\/apex-aiexperts.com\/ja\/wp-json\/wp\/v2\/media?parent=3843"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/apex-aiexperts.com\/ja\/wp-json\/wp\/v2\/categories?post=3843"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/apex-aiexperts.com\/ja\/wp-json\/wp\/v2\/tags?post=3843"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}