Enhanced Smoothed Heiken Ashi Candles

Smooth Heikin Ashi is a modified version of the traditional Heikin Ashi candlestick charting technique that applies additional smoothing to reduce noise and provide clearer trend signals.
Traditional Heikin Ashi Basics
Heikin Ashi (Japanese for "average bar") transforms regular candlesticks using these formulas:

Close = (Open + High + Low + Close) / 4
Open = (Previous HA Open + Previous HA Close) / 2
High = Maximum of (High, HA Open, HA Close)
Low = Minimum of (Low, HA Open, HA Close)

Smooth Heikin Ashi Enhancement
The smooth version applies moving averages to the Heikin Ashi values, typically using:

Simple Moving Average (SMA)
Exponential Moving Average (EMA)
Weighted Moving Average (WMA)

Common smoothing periods range from 5 to 21, with 14 being popular.
Key Benefits
Noise Reduction: Further filters out market noise compared to standard Heikin Ashi, making trends more apparent.
Clearer Signals: Produces smoother transitions between bullish and bearish phases, reducing false signals.
Trend Identification: Makes it easier to identify the dominant trend direction and potential reversals.
Trading Applications

Trend Following: Green/white candles indicate uptrends, red/black indicate downtrends
Entry/Exit Points: Color changes can signal potential trade entries or exits
Support/Resistance: Smoother price action helps identify key levels
Multiple Timeframe Analysis: Works well across different timeframes

The main tradeoff is that increased smoothing creates more lag, so signals may come later than with traditional Heikin Ashi or regular candlesticks.