From Mladen Rakic

Heiken Ashi is a very well known indicator.

One of the variations that is actually improving the indicator is the "smoothed" version. The logic behind the smoothed version is simple:

* Instead of using "raw" prices" for calculations, it's using smoothed/filtered/averaged prices instead.
* That usually filters out some false signals and makes it easier to use.
* This version can use some of the 4 basic types of averages for smoothing:
* Simple moving average (SMA).
* Exponential moving average (EMA).
* Smoothed moving average (SMMA).
* Linear weighted moving average (LWMA).
* Additionally, you can use a "step" filter (in pips) to filter out value changes that are smaller than the desired threshold (if the step is set to <=0, then that filter is not used).