If you're diving into the world of trading, you've likely heard of the Heiken Ashi indicator. It's a popular tool among traders, and for good reason!
But have you tried the smoothed version? This variation enhances the original indicator in a straightforward way:
- Instead of relying on "raw" prices, it uses smoothed, filtered, or averaged prices for its calculations.
- This approach helps to filter out the noise, reducing false signals and making it much easier to interpret.
- With the smoothed version, you can choose from four basic types of averages for that smoothing effect:
- Simple Moving Average (SMA)
- Exponential Moving Average (EMA)
- Smoothed Moving Average (SMMA)
- Linear Weighted Moving Average (LWMA)
- There's also an option for a "step" filter (in pips) to ignore value changes that are smaller than a set threshold. If you set the step to <=0, this filter won't be applied.
Incorporating the Heiken Ashi Smoothed indicator into your trading toolkit can give you a clearer picture of market trends. Happy trading!
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