Heikin Ashi
Heikin Ashi candles (in Japanese: 平均足, average bar) are a variant of Candlestick calculated by applying a weighted average to the values under examination. The formulas are as follows:
Close = (real open + real high + real low + real close) / 4
Open = (previous Heikin-Ashi open + previous Heikin-Ashi close) / 2
High = max(real high, Heikin-Ashi open, Heikin-Ashi close)
Low = min(real low, Heikin-Ashi open, Heikin-Ashi close)
The synchronization of the body with the real Open and Close price is lost, so they are not reliable for direct valuation. The effect is more pronounced on the shadows, which are more prominent than regular candles. They are usually used as a complement to traditional charts. Heikin-Ashi charts resemble candlestick charts, but have a smoother appearance because they plot a range of price movements, rather than plotting every price movement as with candlestick charts. These charts are used by traders and investors to help determine and predict price movements. Like standard candlesticks, a Heikin-Ashi candle has a body and a line, however, they do not serve the same purpose as a candlestick chart. The last price of a Heikin-Ashi candle is calculated from the average price of the current bar or time period (for example, a daily time period would have each bar represent the price movements of that specific day). The main purpose of a Heikin-Ashi chart is to show the overall price action (price direction) and the strength of any trend; these are represented by the shadows, which are the lines that extend from the main body of the candle. A series of rising candles without lower shadows indicates a strong upward trend and vice versa with falling candles without upper shadows.
Source: Wikipedia
Settings
Up Candle Color: color to draw the Real-Body of rising candles, i.e. candles whose Close price is higher than the Open price;
Down Candle Color: color to draw the Real-Body of falling candles, i.e. candles whose Close price is lower than the Open price;
Shadow Color: color to draw the lower and upper shadows of the candles;
Draw with Outlines: if active, the Real-Body of the candles is drawn with a colored border;
Up Candle Outline Color: Color of the border of rising candles;
Down Candle Outline Color: Color of the border of falling candles;