The Heikin-Ashi technique is a visual method which eliminates irregularities in candlestick charts. White candles indicate a rising trend while black candles indicate a downtrend. The size of the candle body shows the current trend strength.

The Heikin-Ashi Difference is the difference between haClose and haOpen. Heikin-Ashi offers a modified open-high-low-close configuration.

haClose = ( O + H + L + C ) / 4
haOpen = ( haOpen ( previous bar ) + haClose (previous bar ) ) / 2
haHigh = Maximum ( H, haOpen, haClose )
haLow = Minimum ( L, haOpen, haClose )

The open, high, low, and close are of the current bar.

haOpen is always set to the midpoint of the body of the previous bar.

haClose is computed as the average price of the current bar.

haHigh and haLow are the highest and lowest values of the set.

The solid blue line is the Heikin-Ashi Difference, while the dotted red line is the difference smoothed with a simple moving average.