NOTE 101- When drawing trendlines its better to do these across...

NOTE 101-

When drawing trendlines its better to do these across heikin ashi candle wicks as its smoothed out.....we all know price can overshoot trendlines however we dont get confirmation of trendline reversals unless heikin ashi candles say so...whereas trendlines drawn on regular candles may give impression trendline has failed when in fact it hasnt

Though timing into a position is better on regular candles

The Heikin-Ashi technique – meaning "average bar" in Japanese – can be used in conjunction with candlestick charts to spot trends and to predict future prices. Most profits are generated when markets are trending, so predicting trends correctly is necessary. Heikin-Ashi charts can also be used to keep traders in trades while a trend persists but get them out when the trend pauses or reverses.
Normal candlestick charts are composed of a series of open-high-low-close (OHLC) candles set apart by a time series. The Heikin-Ashi technique uses a modified formula:​

• Close = (Open + High + Low + Close) / 4
  o This is the average price of the current bar.
• Open = (Open of Previous Bar + Close of Previous Bar) / 2
  o This is the midpoint of the previous bar.
• High = Max of (High, Open, Close)
  o Highest value of the three.
• Low = Min of (Low, Open, Close)
  o Lowest value of the three.

Read more: Heikin-Ashi: A Better Candlestick https://www.investopedia.com/trading/heikin-ashi-better-candlestick/#ixzz5HGP8lMsv
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