Advanced chart reading
The idea
Heikin Ashi transforms OHLC data to smooth the display; its candle prices are not necessarily executable quotes. Wave counts and harmonic patterns describe structured interpretations of swings and ratios. These methods require explicit rules because alternative counts can fit the same chart. Validate orders against actual market prices.
A worked example
A smoothed candle can still look bullish while the real price has already crossed a planned stop. Use the real quote for order decisions.
Try it yourself
Compare transformed and standard candles for the same session. Record where displayed opens and closes differ.
A mistake to avoid
Placing orders at a synthetic candle price or presenting a subjective wave count as a fact.