Heiken Ashi Formula

1st Aug '20 by Wayneskie

3 comments 479 reads

So I'm learning more about Candlesticks and Heiken Ashi and their relative merits and pitfalls. Any opinions of these relative merits are welcome btw.

But I have a specific question about charting these in excel.

I have managed to get the formula for Close , High and Low all correct and agreeing with the rest of the world (I'm working on British American Tobacco (LON:BATS)).

I cannot get my Open figure to agree.

I am using the very simple formula of (Previous Period real stock Open + Previous Period real Stock Close)/2. The average of the previous days open and close. This seems to be the accepted and published formula?

I've tried using various combinations of the real prices and the Heiken -Ashi prices.

This will not agree with the rest of the world.

Where am I going wrong?

Thanks

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Wayneskie

1st Aug '20

I've sorted it.

If anybody is interested, it is in fact the average of the Heiken-Ashi Open and Close prices. But because it looks back in time (so to speak), you have to start with an Heiken-Ashi Open price rather than a regular stock Open price. Your first date on the spreadsheet has to have given values rather than referencing an online stock price for example.

rbiggs3000

3rd Aug '20

all very good, but what did it tell you about BATS?!

I'm starting to build my own systems of analysis. It's not bulletproof yet, but it's all about learning and understanding more.

Heiken Ashi Formula

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Wayneskie

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