The Heikin Ashi histogram

Average daily range | Bollinger volatility explosion | Commodities forecast tool | Daily high-low time | Donchian channel | Elliot oscillator | Fibonacci levels | Guppy multiple moving averages | Heikin Ashi histogram | Laguerre RSI | Larry Williams proxy index | MACD histogram | Rainbow moving average | Stochastics cross | Three Bollinger oscillators |

This tool converts the Heikin Ashi chart into a histogram. The Heikin Ashi histogram is shown below the main chart.

This example shows the EUR/USD in a 5-minute time frame. The Heikin Ashi histogram is visible below the main chart.

Although not technically an oscillator, some traders use the histogram to identify overbought and oversold situations. This is particularly true when the histogram is smoothed by applying a simple moving average or an exponential moving average.

Other traders look for signals when the histogram crosses the zero-line.

This example shows Coca-Cola over several months. The Heikin Ashi histogram has been smoothed by averaging it over 20 days. When taking the most extreme values of the histogram we can see two buy opportunities and one short sell opportunity for swing trades.

The Heikin Ashi histogram applied to a US market stock (Coca-Cola).

This example shows the U.K. FTSE 100 index. The trend is bullish and buy opportunities occur when the histogram changes from red to green.

The Heikin Ashi trading histogram applied to the FTSE 100 index.

The Heikin Ashi histogram can be used in all time frames and on all instruments (DOW, DAX, CAC, EUR/USD ...).