The Heikin-Ashi technique modifies the open-high-low-close series that most candlestick charts use, thus making trends easier to spot. While it’s constructed like a regular candlestick, the technique’s formula is close-open-high-low. The user defines the time series depending on the type of chart desired. Down days are filled bars, while up days are hollow. The technique is most commonly used with equity and commodity markets.Heikin-Ashi charts provide five primary signals that identify trends and buying opportunities: Hollow candles with no lower shadows indicate a strong uptrend and the time to let profits ride. Hollow candles signify an uptrend, which is a good time to add to long positions and exit shorts. When upper and lower shadows surround one small candle, it indicates a trend change. Risk lovers might buy or sell, while others will wait for confirmation. Filled candles indicate a downtrend and mean that it’s time to add to short positions and exit longs. And filled candles with no higher shadows indicate a strong downtrend. Stay short until a new trend appears.