The Heiken Ashi Smoothed indicator is a modified version of the standard Heiken Ashi indicator. It draws “average bars” on the Metatrader 4 chart, however it doesn’t transform normal Japanese candles but it places “average bars” on them. This tool is mainly used for trend recognition and forecasting future prices.
How to use Heiken Ashi Smoothed indicator?
Heiken Ashi Smoothed indicator filters the false signals and market noise. It applies the set of two moving averages to smooth the price information provided by the Heiken Ashi.
If we ignore a small lag, it can be used to find swing points and new emerging trend in the market. It provides an opportunity to see the price dynamics that usually remains invisible to the human eye. Using the provided information by Heiken Ashi Smoothed indicator, traders can adjust their strategies accordingly.
Heiken Ashi Smoothed Formula
The formula of the open, high, low and close on the Heiken Ashi chart is calculated in the following way:
Close = Open + High + Low + Close/4 – This is nothing but the average price of the session
Open = Open + Close/2 + Close – This is the average of the open and closing prices and the closing price of the previous session
High = Maximum value of the High, Open, Close
Low = Minimum value of the Low, Open, Close
What you can see from the above is that the Heiken Ashi price chart gives attention to both the high and the low as well as the closing prices. This leads to a different perspective on how the price is displayed on the chart.
If you are looking for exact code of the Heiken Ashi Smoothed formula in Meta Quotes Language, it is following:
How to install the Heiken Ashi Smoothed Indicator on your Metatrader 4 trading platform?
- Download the indicator by clicking “LINK” button at the bottom of this post.
- Copy and paste the Heiken Ashi Smoothed Indicator files into following folder of your Metatrader 4 (MT4) platform: MQL4 > Indicators.
- You can gain access to the folders this way: File > Open Data Folder > MQL4 > Indicators (paste files here).
- Restart your Metatrader 4 Client.
- Select Chart and Timeframe where you want to test the indicator
- Browse “Custom Indicators” in your Navigator that is located on the left in your Metatrader 4 platform.
- Right click on heiken-ashi-smoothed.mq4 and than click “Attach to the chart”.
- You can modify settings if you need and than click ok.
- The indicator is ready and running on the chart.
In the archives you will find following Metatrader 4 files included:
Heiken Ashi Smoothed Indicator free download:
To download the Heiken Ashi Smoothed for Metatrader 4 (MT4) for free just click the button below: