<s>
Heikin-Ashi	B-Application
is	O
a	O
Japanese	O
trading	O
indicator	O
and	O
financial	O
chart	O
that	O
means	O
"	O
average	O
pace	O
"	O
.	O
</s>
<s>
Heikin-Ashi	B-Application
charts	I-Application
resemble	O
candlestick	B-Application
charts	I-Application
,	O
but	O
have	O
a	O
smoother	O
appearance	O
as	O
they	O
track	O
a	O
range	O
of	O
price	O
movements	O
,	O
rather	O
than	O
tracking	O
every	O
price	O
movement	O
as	O
with	O
candlesticks	O
.	O
</s>
<s>
Heikin-Ashi	B-Application
was	O
created	O
in	O
the	O
1700s	O
by	O
Munehisa	O
Homma	O
,	O
who	O
also	O
created	O
the	O
candlestick	B-Application
chart	I-Application
.	O
</s>
<s>
Like	O
standard	O
candlesticks	O
,	O
a	O
Heikin-Ashi	B-Application
candle	O
has	O
a	O
body	O
and	O
a	O
wick	O
,	O
however	O
,	O
they	O
do	O
not	O
have	O
the	O
same	O
purpose	O
as	O
on	O
a	O
candlestick	B-Application
chart	I-Application
.	O
</s>
<s>
The	O
last	O
price	O
of	O
a	O
Heikin-Ashi	B-Application
candle	O
is	O
calculated	O
by	O
the	O
average	O
price	O
of	O
the	O
current	O
bar	O
or	O
timeframe	O
(	O
e.g.	O
,	O
a	O
daily	O
timeframe	O
would	O
have	O
each	O
bar	O
represent	O
the	O
price	O
movements	O
of	O
that	O
specific	O
day	O
)	O
.	O
</s>
<s>
The	O
formula	O
for	O
the	O
last	O
price	O
of	O
the	O
Heikin-Ashi	B-Application
bar	O
or	O
candle	O
is	O
calculated	O
by	O
:	O
(	O
open	O
+	O
high	O
+	O
low	O
+	O
close	O
)	O
4	O
.	O
</s>
<s>
The	O
open	O
of	O
a	O
Heikin-Ashi	B-Application
starts	O
at	O
the	O
midpoint	O
of	O
the	O
previous	O
candle	O
;	O
it	O
is	O
calculated	O
by	O
:	O
(	O
the	O
open	O
of	O
previous	O
bar	O
+	O
the	O
close	O
of	O
the	O
previous	O
bar	O
)	O
2	O
.	O
</s>
<s>
The	O
main	O
purpose	O
of	O
a	O
Heikin-Ashi	B-Application
chart	I-Application
is	O
to	O
show	O
the	O
general	O
trend	O
of	O
the	O
price	O
(	O
direction	O
of	O
price	O
)	O
and	O
the	O
strength	O
of	O
each	O
trend	O
;	O
these	O
are	O
represented	O
by	O
the	O
wicks	O
:	O
small	O
lines	O
that	O
extend	O
from	O
the	O
main	O
body	O
of	O
the	O
candle	O
.	O
</s>
<s>
Heikin-Ashi	B-Application
is	O
normally	O
paired	O
with	O
other	O
indicators	O
to	O
indicate	O
long	O
(	O
buy	O
)	O
and	O
short	O
(	O
sell	O
)	O
positions	O
.	O
</s>
<s>
Candlestick	B-Application
charts	I-Application
will	O
however	O
show	O
price	O
gaps	O
.	O
</s>
