July 22, 2019 02:05 PM RSS

The Heikin Ashi Chart: USO Breakout Ahead Or Failure?

  • Wall Street Rebel | Geoff Garbacz
  • 06/13/2018 6:57 AM
The Heikin Ashi Chart: USO Breakout Ahead Or Failure?
One of the most simple charts that we love is the Heikin Ashi chart. The most basic chart is a bar chart. A bar chart simply shows the open high low and close each day.

An improvement to the bar chart is a candlestick chart. This chart turns the bar chart into a candle that is either red or white depending on whether the day was positive or negative.

Even better is the Heikin Ashi chart that can be found in a variety of places including Erlanger Chart Room. This chart takes the candlestick chart and turns it green or red using a forecasting technique.

[Chart]

As one can see it has done a good job of forecasting the movement of the price of oil via USO. Currently, it appears to be turning up but the candles are rather small. This indicates that the move may be a false move. We learn more at 10:30 a.m. when the weekly oil & gas numbers are released.

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