What is it?
Smooth Heikin Ashi is a variation of Heikin Ashi that applies additional smoothing (often via a moving average) to reduce noise even further, making trends clearer in choppy markets.

How is it used?

  • Trend clarity: Smoother trends make it easier to stay in trades during pullbacks.
  • Reversal signals: Changes in the smoothed candle direction can signal trend shifts.
  • Filtering: Reduces false signals in volatile markets like crypto.

How is it calculated?

  • First, calculate standard Heikin Ashi candles (as above).
  • Then, apply a moving average (e.g., SMA or EMA) to the Heikin Ashi close prices:

Smooth HA Close = SMA(HA Close, m)  

Where m is the smoothing period (e.g., 5).

The above content is designed for informational purposes only, and is explicitly not investment advice. Algo Pilot is a US based technology company and not a bank, broker-dealer, or RIA. As such, Algo Pilot LLC does not provide investment advice and is not a member, SIPC. Brokerage services offered by 3rd parties are not directly affiliated with Algo Pilot LLC, and Algo Pilot users may choose the broker relationship that they desire.