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Explaining Heikin Ashi, Guide Part 9Most day traders prefer to use candlestick charts for their analysis, but most have not heard of Heikin Ashi candles. Heikin Ashi candles have recently gained popularity among daily traders to more easily identify a certain trend. Candles: Heikin Ashi Seeing this: Can we tell the difference?, Heikin Ashi is made to identify a trend not the movements of the price in specific, there are certain programming to explain but it is not really necessary to learn it. You could say that what it does is take an average of the previous candles and take a way to visualize whether it continues its trend or not. One of the most obvious differences between Heikin Ashi charts and Japanese candles is the calculation of the opening and closing prices. Instead of using the open, high, low and close of the current bar to build the bar, Heikin Ashi candles are formed by combining the midpoint of the previous bar with the open, high, low and close. of the current bar. A green bar means that the average closing price of the previous six bars is in the top 50% of its range, indicating a bullish bias. The opposite occurs with the red bars. Transcendence of the Heikin Ashi chandeliers Heikin Ashi charts make candlestick charts more readable for traders who aspire to know when to exit a trade once the trend weakens and when to stay in a strong trend. They are a modified way of displaying data on your candlestick chart, primarily the function of softening the volatility of a stock or other financial gadgets, which enables traders to produce more complicated trading tactics. Typical candlestick charts will show how volatile the markets were on a particular candle and the overall trend. Heikin Ashi charts filter the sound and smooth out the cost action on a chart by displaying values using averages to generate something that looks a lot like the candle. How to calculate the Heikin Ashi candle As mentioned above, Heikin Ashi candles are based on current close-open-high-low (COHL) price data, current Heikin-Ashi values, and previous Heikin-Ashi values. Here's a quick breakdown of how to calculate the Heiken Ashi candle: The Heikin Ashi close is simply an average open, high, low and close of the current period. Close = ¼ (Open + Close + Low + Close) The Heikin Ashi Open is the average of the previous open Heikin Ashi candle plus the close of the previous Heikin Ashi candle. Open = ½ (Open of the previous bar + Close of the previous bar) The Heikin Ashi High is the maximum of three maximum points. High = (High, Open, Closed) The Heikin Ashi minimum is the minimum of three minimums. Low = (Low, Open, Closed) How to use Heikin Ashi candle holders Now that you know what Heikin Ashi candles look like and how they are calculated, it's time to learn how you can apply them to your trading. Heikin Ashi's charting technique can be used to spot trend reversals or potential trends. This indicator takes several bars in context and not just one bar. Limitations of Heikin Ashi Like any other technical analysis tool, Heikin Ashi is useful but has some limitations or weaknesses. For example, the candles do not show the exact opening and closing prices. The candles hide the real information of the value of the asset. In addition, they require previous data, which does not serve too much for people to trade in the short term too much due to the high risk of this. This type of non-standard chart is mostly used to verify trends, therefore some indicators such as Ichimoku or Buy And Sell tend to use this type of chart. The problem with this is that Heikin Ashi does not really show the real price of the asset if not an average of it, so it is good to backtest and learn the use of these types of indicators. Example Buy and Sell: The Buy And Sell indicator indicates entry and closing of this, but then it continues to rise. Therefore, you need to understand that these indicators really have a great fault. In addition, the best entry would have been in the indicated circle. Example Ichimoku: As we can see, ichimoku is a bit more exact about this, but in a way it also has its flaws, ichimoku is an indicator that looks for inputs through moving averages. Mostly the 9-26-52 setting. But it is not recommended to use it in its entirety as a holy grail. It's pretty good, but try to make it a complement to your analysis. Candles: If you have a different opinion than mine, I will respect it. Mention your idea in the comments.
BINANCE:BTCUSDEducation
by UnknownUnicorn18500526
7
BTCUSD Heikin Ashi daily RSI divergence and fib correlation Heikin Ashi daily is interesting. RSI daily peak was on 2021-01-03 with bearish divergence since then. That RSI peak is right near the 0.618 of the bull run starting 2020-12-11 through today 2021-04-08. No idea where price goes from here, a break out and the top is likely to blow off in rapid fashion, but it looks like we have a lower high so a big correction could still be in play. If there would be a big correction then that ~34,500 level could be a potential target for the bottom of a big down wick.
COINBASE:BTCUSD
by RobBiddle
This Is The Bottom On $SE Spotted a hidden bullish divergence on SE, marked by the purple arrows and H Bull label. On the higher weekly timeframe, price is above the Ichimoku Cloud telling us that it is still on a long term uptrend. On the daily timeframe, price is currently below the cloud, showing temporary downtrend. Looking at the recent 3 Heikin Ashi candlesticks, we can see a reduction in bearish momentum, with looming indecision. In my opinion, this could be the pivot low and price would move higher in the next few days. I'd go long here.
NYSE:SELong
by TheInvestingCloud
2
ZECUSD to push higher???For those onboard ZECUSD has a great run a few weeks ago. This morning it formed an Ascending Triangle and pushed out of the Keltner Channel indicating short term bullish trend. Considering the long term bullish trend as well and especially the delayed sympathy in the price action to BCHUSD, both essentially BTC forks with slightly different functionalities, there's a high probability of a push MUCH higher. IF. If it can break the resistance at 299. Currently it's stalling there at the high from April 17. And 300 has that whole number rejection power. An other concern is the time of day. We're at 6:30pm EST now and sometimes there can be unpredictable low volume pullbacks. If it doesn't make it through tonight I think there's very good chance it will try again in fairly short order. IF we can push through the Double Top we could be home free for a bull run similar to BCHUSD. Price target: 420. :o
GEMINI:ZECUSDLong
by Thundershadow
3
COIN : STUCKCOIN is still stuck in the downward channel that it's been in for awhile now (atleast, from this perspective). It shifted upwards a bit yesterday, and is currently lodged underneath the 0.50 fib. The 0.50 fib appears to be COIN's heaviest resistance within the channel (and although COIN did break through the 0.50 fib temporarily twice before, it was rejected at the 0.618 fib just above). The 0.50 fib also hasn't offered much in terms of support when retested... it appears that most of the support is coming from the 0.382 and 0.236 fib levels. As with everyone else (I suppose) who might be considering COIN, I'm still keeping an eye out for some significant upward price action, or atleast something that resembles a price base. I discovered a fascinating horizontal at $291.11, but I'd obviously still need more before confirming anything. Who knows, it could be weeks before it stops dropping... or one day soon it could just start rolling uphill, while I'm still looking for a bottom, never to come back. No matter... for now, I'm still learning and having fun charting COIN. And my outlook on COIN is still long long-term. Enjoy! // Durbtrade
NASDAQ:COINLong
by Durbtrade
10
COIN : OUTCOIN bounces out of the descending channel that it's been rolling in since the beginning of the week. Has a base of COIN been established at 300? Starting with a horizontal ray at 310 (the bottom of the big drop), I began using rays to connect the higher wicks together, and then the lows together. After that, I extended some rays to the left and looked at where all the lines intersect. Using these lines and points, I placed pitchfans, lining the outside edges up to the rays. Once I established the main placement of the pitchfans, I removed some unnecessary rays and then edited the divisions of the pitchfans in the settings, lining up the divisions to wicks of the inner candles in the most meaningful ways that I could. If you zoom in you can see that every single line on the chart aligns with atleast 2 wicks or 2 candle bodies, other lines line up with quite more. Each line is specifically placed while considering wick importance and # of wicks aligned. Fib spirals too. 2 triangles were then placed forming a pyramid structure in order to express the fact that one of the reasons that I am currently analyzing the trends in COIN price action in this way is to try to establish a possible price base of COIN after its IPO fallout to use as justification for a possible and timely buy in. And here we are, 50 cents above that initial low point after the IPO. Will COIN continue to roll downhill, or will it start bouncing higher? I am not completely sure, and tomorrow this chart may look quite different than it does now. It's fascinating. Got my eye on COIN... watching for a "heads bulls win, tails bears lose" scenario. //Durbtrade
NASDAQ:COINLong
by Durbtrade
9