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Old 07-06-2009, 07:44 AM
juchu juchu is offline
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Someone mentioned he uses Heiken Ashi instead of normal candle sticks. Ive tried it and I find it very helpful. Why is it better? It helps me read the trend and deside whether to stay in trade or leave it.
Heres, how it is normaly interpreted:

Hollow candles with no lower "shadows" indicate a strong uptrend: let your profits ride!
Hollow candles signify an uptrend: you might want to add to your long position, and exit short positions.
One candle with a small body surrounded by upper and lower shadows indicates a trend change: risk-loving traders might buy or sell here, while others will wait for confirmation before going short or long.
Filled candles indicate a downtrend: you might want to add to your short position, and exit long positions.
Filled candles with no higher shadows identify a strong downtrend: stay short until there's a change in trend.

(copypasted from investopedia)

Hope this helps.
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