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Jim Dean

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Posts: 3433

Joined: 3/13/2006
Location: L'ville, GA

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Subject : RE: OP and Heikin-Ashi
Posted : 11/22/2014 4:26 PM
Post #23159 - In reply to #23158

It is not possible for a trade to be controlled directly in relation to the pricepoints of a HA bar, since the pricepoints of that bar are theoretical and not real. The formulae for them:
Close = (Open+High+Low+Close)/4
Open = [Open (previous bar) + Close (previous bar)]/2
High = Max (High,Open,Close)
Low = Min (Low,Open, Close)

So, if for instance the close of the HA bar fires a signal to enter or exit, the actual entry or exit price relates to the underlying raw bar's Close, or the next underlying bar's Open. Except in coincidences, these prices don't correspond to the prices of the HA bar.

Deleting message 23159 : RE: OP and Heikin-Ashi


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