Heikin-Ashi
A modified candlestick chart in which each period's values are averaged with the previous period's to smooth the series.
Formula
HA Close = (Open + High + Low + Close) / 4; HA Open = (Previous HA Open + Previous HA Close) / 2
Unit
₹
In depth
Because each Heikin-Ashi candle incorporates the previous one, the chart is smoother and short-lived reversals largely disappear, which makes a sustained move easier to see. That smoothing comes at a real cost that many users miss: the plotted prices are not prices anyone actually traded at, and the chart lags real price. Placing an order or a stop-loss at a Heikin-Ashi level is therefore a mistake, since the market never visited it. Use it to view a series, and use real OHLC values for every decision that touches an order.
Worked example
Real values open ₹500, high ₹512, low ₹494, close ₹504 give an HA close of (500 + 512 + 494 + 504) / 4 = ₹502.50. No trade occurred at ₹502.50; it is an average, and a stop placed there rests on a number the market never printed.
Illustrative figures, chosen so the arithmetic is easy to follow. Not a live price and not a valuation of any company.
Educational reference only
This entry explains what “Heikin-Ashi” means. It is not investment advice and not a recommendation to buy or sell any security. Any numbers above are illustrative, not live prices, and nothing here predicts price direction or rates a stock. Consider your own circumstances and consult a SEBI-registered investment adviser before acting.