1) is it usefully in algorithmic trading strategies(Heikin ashi )?
2) Can we trust on Heikin ashi backtesting result ?
3) is it work in live trading?
I backtesting my strategies on both charts , but confuse with Heikin ashi result
Hello, Shirish,
Candlestick charts and Heikin-Ashi charts are both commonly used charting methods in algorithmic trading. However, they differ in several important ways.
Heikin-Ashi charts are a type of modified candlestick chart. Instead of using the actual price data for an asset, Heikin-Ashi charts use an average of the price data to create a smoothed-out representation of price action. This smoothing of the data can help to reduce market noise and make trends easier to identify. Heikin-Ashi charts use different calculations to determine the open, close, high, and low prices of each period compared to normal candlestick charts.
n algorithmic trading, both types of charts can be used to identify market trends and make trading decisions. However, the choice between Candlestick charts and Heikin-Ashi charts often comes down to personal preference and the specific trading strategy being used. Some traders prefer the clarity and precision of Candlestick charts, while others prefer the smoothing effect of Heikin-Ashi charts. It's important to experiment with both types of charts to determine which one works best for a particular trading strategy.
I hope this helps!
Thanks …