Every term is defined twice: once the way a filing would put it, and once the way somebody would explain it to you across a table. The second one is usually the one that sticks.
Showing 3 terms
A chart type in which each bar is averaged with the one before it, so trends appear as long unbroken runs of a single colour.
The prices it displays never traded. Use it to decide whether you are in a trend, never to place a stop or read a level — your order executes in the real order book.
Averaging price data to suppress short-term noise, as Heikin-Ashi does by blending each bar with the one before it.
It buys clarity by discarding information, and it flatters backtests badly — because the whipsaws it removed are exactly the ones that would have stopped you out live.
A price displayed on a chart that was calculated rather than transacted, such as a Heikin-Ashi open or close.
Never place a stop off one. The level does not exist in the order book where your order will execute.