Heikin Ashi is a type of candlestick charting technique used in technical analysis to identify market trends. Unlike traditional candlestick charts, which display price action using the open, high, low, and close of each period, Heikin Ashi uses modified calculations to smooth price data. This results in candlesticks that are easier to interpret, as they filter out market noise and provide a clearer representation of the trend direction. Blue or green candles typically indicate an uptrend, while red or bearish candles signal a downtrend, allowing traders to make more informed decisions based on the overall market momentum.