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This approach analyses candlestick patterns to filter out some of the “noise” in the market.
In Japanese, the meaning of “Heiken” is average, and “Ashi” refers to bar, and
unsurprisingly this approach involves establishing the average bar. Once that has been
done, it’s possible to decide whether momentum is building, continuing, or reversing. All
the information needed is included on simple price charts. It’s just a case of reflecting on
what the data contained in the charts reveals.
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