A Heikin Ashi New Red Candle is the first red candle after one or more green ones. Heikin Ashi candles average the open, high, low and close of each bar with the previous candle, which filters out noise and makes trends easier to see. Because Heikin Ashi colors change only when the averaged price turns, a new red candle is a smoothed signal that an advance may be ending and a downswing starting.
