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Heikinashi

Heikin Ashi Charts vs. Candlestick ChartsFollowing price action is at the core of markets. One glance at a chart can show you a trend, trade idea, or serve as a quick way to check the holdings in your portfolio. Candlestick charts are one of the most popular ways to look at price action. A single candlestick shows the high, low, open, and close for a specific time period. This means that a lot of price information is stored in a single candlestick . However, sometimes, that price information is filled with volatility or chaotic trading. That's where Heikin Ashi charts are most useful - they smooth out the price by showing an average price range rather than the exact measurements. In fact, Heikin Ashi charts were developed in Japan and the word Heikin means “average” in Japanese . For those who invest over long-term horizons or look for sustainable trends, Heikin Ashi charts can be an effective way to smooth out price and show clearer trends. The key to understanding Heikin-Ashi charts is to remember that each bar, whether it's red or green, shows an average price range for a specific time period whereas a candlestick chart shows the exact price levels for that time period. The formula for a Heikin Ashi looks like this: Open = (Previous bar open + previous bar close) / 2 Close = (Open + High + Low + Close) / 4 High = Highest point whether it's the open, high, low or close Low = Lowest point whether it's the open, high, low or close Make sure to test out these two different chart types and have some fun. There is no better way to learn than to compare and contrast the two types of charts as we are doing in this example. Remember, it is also about your personal preference. Do you want to see every granular detail in price action? Or do you want to see an average price of that trading action? This is entirely up to you and the tools are here for you to try. NOTE While Heikin Ashi and other non-standard charts can be useful to analyze markets, they should not be used to backtest strategies or issue trade orders, as their prices are synthetic and do not reflect bid/ask levels at exchanges or brokers. If you need more information to understand why that is, have a look at these publications:  • In the Help Center: Strategy produces unrealistic results on non-standard chart types (Heikin Ashi, Renko, etc.)  • From PineCoders: Backtesting on Non-Standard Charts: Caution! Thanks for reading and please leave any comments or questions if you have them! Comment : P.S. Someone asked how they can select Heikin Ashi. Click the dropdown at the top of your chart where it currently shows either your Candlestick or Line chart options. Then select Heikin Ashi from the dropdown menu.
Editors' picks
Education
by TradingView
15
ETH TO REBOUND TO NEW HIGHS?Hello - I know if you're passionate about crypto and Defi like I am, this is in some ways not the best time. But as they say, when others are fearful be greedy... So just a friendly reminder that this time a year ago ETH was trading around $200 USD and we've just lost one month of price action... So even after the drop ETH is still up 1,100% in 12 months. :o Currently on the 4HR I'm seeing a Descending Triangle, and going in to the weekend as well, I think we could be looking to drop further. This weekly chart though looks a lot like an Elliot Wave, and that we COULD be in wave four. IF> If the bears can't push all the way to next support at 1,600, say IF it reversed in the 1,700-1,900 range then we could enter a wave five. Then I think after some consolidations we could be looking to get into the 6,000-10,000 range some months down the road, especially if everyone freaks out about inflation. Your groceries more expensive recently? Mine are. Just saying. Not financial advice, just some thoughts. Manage your risk and be careful. Good luck! DEFI!!!
GEMINI:ETHUSDLong
by Thundershadow
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
Heikin Ashi Charts vs. Candlestick ChartsFollowing price action is at the core of markets. One glance at a chart can show you a trend, trade idea, or serve as a quick way to check the holdings in your portfolio. Candlestick charts are one of the most popular ways to look at price action. A single candlestick shows the high, low, open, and close for a specific time period. This means that a lot of price information is stored in a single candlestick. However, sometimes, that price information is filled with volatility or chaotic trading. That's where Heikin Ashi charts are most useful - they smooth out the price by showing an average price range rather than the exact measurements. In fact, Heikin Ashi charts were developed in Japan and the word Heikin means “average” in Japanese. For those who invest over long-term horizons or look for sustainable trends, Heikin Ashi charts can be an effective way to smooth out price and show clearer trends. The key to understanding Heikin-Ashi charts is to remember that each bar, whether it's red or green, shows an average price range for a specific time period whereas a candlestick chart shows the exact price levels for that time period. The formula for a Heikin Ashi looks like this: Open = (Previous bar open + previous bar close) / 2 Close = (Open + High + Low + Close) / 4 High = Highest point whether it's the open, high, low or close Low = Lowest point whether it's the open, high, low or close Make sure to test out these two different chart types and have some fun. There is no better way to learn than to compare and contrast the two types of charts as we are doing in this example. Remember, it is also about your personal preference. Do you want to see every granular detail in price action? Or do you want to see an average price of that trading action? This is entirely up to you and the tools are here for you to try. NOTE While Heikin Ashi and other non-standard charts can be useful to analyze markets, they should not be used to backtest strategies or issue trade orders, as their prices are synthetic and do not reflect bid/ask levels at exchanges or brokers. If you need more information to understand why that is, have a look at these publications:  • In the Help Center: Strategy produces unrealistic results on non-standard chart types (Heikin Ashi, Renko, etc.)  • From PineCoders: Backtesting on Non-Standard Charts: Caution! Thanks for reading and please leave any comments or questions if you have them!
Editors' picks
Education
by TradingView
37
Implementing Heiken Ashi CandlesKEY POINTS: Heikin-Ashi is a candlestick pattern technique that aims to reduce some of the market noise, creating a chart that highlights trend direction better than typical candlestick charts. The downside to Heikin-Ashi is that some price data is lost with averaging, which could affect risk. Long down candles with little upper shadow represent strong selling pressure. Long up candles with small or no lower shadows signal strong buying pressure. ----------------------------------------------------------------- When paired with risk management tools, trading indicators can give you a clear insight into price movements. Heiken Ashi candlesticks resemble a typical Japanese candlestick, but several details differ from the traditional candlestick chart. Every Heiken Ashi candlestick has an upper candlewick, a shadow (lower candlewick) and a body – much like the Japanese candlesticks. However, a bar in the Heiken Ashi starts from the middle of the one before it and not where the previous one closed-a significant distinction. Each candle has a high, low, open and close, and thus the Heiken Ashi formula has four segments.The opening level is the midpoint of the previous bar; the Close of each bar is the average of high, low, open and close. If you’re aiming to catch persistent trends, then Heiken Ashi will be valuable. NOTE: However, day traders who need to exploit quick price moves may find Heikin-Ashi charts are not responsive enough to be useful. Also, due to no price gaps within Heikin-Ashi candlestick charts, risk management is harder to monitor. Using additional methods to watch risk is advised. The formula for calculating Heikin-Ashi candlesticks is as follows: Open= (Open of previous bar+ Close of previous bar)/2 Close = (Open + Close + High + Low)/4 High = the Maximum Price Reached Low = Minimum Price Reached *Hope this helped refresh your knowledge of Heikin-Ashi candlesticks or showed you a new trading strategy to use.
NASDAQ:CLSKEducation
by kingmidasLXIX
1
Long in EUR/GBP (Updates):Hello guys, and what's comming up today at night. Well, in htis par, EUR/GBP has a possible entry in long using the MACD and price action, in that case I use Heikin Asshi candlestick to try how it's work, and did you know? This is my first time that I use this candlestick. So, also to mentioned, there are a 75% of probability that this par is up and we need to discart the shoulder head shoulder so what mentioned yersterday in my previously technical analysis. And now, we see that we are in the formation of BAT bearih. And so, there are a nice target profit of 76 pips. But rommorow, I go want to stay alert of what EUR make, because in this week there are a good news for currency called Euro. So, also, we can to break up the resistance line and see a EUR/GBP invevitable a high of 2.618% of Fibonacci, if it's was the root cause, we can to see a possible formation CRAB. So, get success to your analysis!!!.
Long
by harisonhbn9718
1
Bitcoin TARGET 1 HIT !!!Hello Traders, Remember my last analysis about BTC with Fib View & Heikin Ashi Chart ? Guess What !? The Fib level 1 which was our first target has been hit ! I'm so happy that this first goal is accomplished but it's just the beginning and the next Target which is the 1.27 Fib level could be more difficult for Bitcoin. Why ? Just because Bitcoin must first break the 10 000 $ price level which could be a good support in the next days if sellers wait for it with power ! Ok, it's all for tonight and i wish you a good night ! Take care Traders ! Please don't forget to support me by a following & a like ! Thanks & see you !
COINBASE:BTCUSDLong
by UnknownUnicorn4544564
Bitcoin Fibonacci View & Heikin Ashi Chart !Hello Traders, I hope you had a nice Week-end despite the quarantine. Remember my first two analysis about Bitcoin ? Ok, So today i propose you a different view with Fib retracement & Heikin Ashi chart ! 1. I know you gonna say me why i put my Fib like this ? 99 % of traders who use Fib retracement choose the highest point of the chart and extend it to the lowest point of the chart. It's the classic way to use Fibonacci. But there are other ways just let me show you one different. Where dit it come from ? To be honest, I simply listen the tips from a professional trader who has been investing more than 30 years. You have to put your Fib retracement on the candle which break your "trend" line. Just be carefull that your line has to be well placed on your chart. The line must tell you the story of the asset and not make your analysis more difficult. Then extend the fib till the lower candle of your chart but you have to choose the close of your candle. Remember OHLC check it and enter the close of your lower candle in your Fib coordinates price bar 2. Personal advice : It's not necessary to hold the wick of your candle in your Fib if the candle has. You can of course but it's not necessary. Why ? Because the wicks are just market noise. The wicks are important for other stuff like candlestick pattern etc. etc. but not really for your Fib. 2. On the chart you'll see what i'm thinking about the possible scenario for Bitcoin with Fib retracement. 3. Don't forget the VWAP. VWAP is your best friend ! Here we have 2 case : a) Bitcoin price broke the VWAP and did a pullback on it for then continue its Downtrend. b) In the actual trend, Bitcoin price broke the VWAP, still continue its Uptrend and did not pullback. 4. Because of the VWAP break in the actual trend we have a really nice bullish potential. 5. Please, if you want to enter Long in a trade, Pay attention for a possible retracement like you can see on my chart. Ok, it's all for today ! I really hope you'll like it ! Please don't forget to support me with a following and a like ! Thanks & see you !
COINBASE:BTCUSDLong
by UnknownUnicorn4544564
TOP 8 MOST PROFITABLE USDT MARKETSHi guys, I backtested every USDT market from Binance, from january 2019 to now, using the strategy tester. Out of 20 pairs that I ended up ordering by Strategy Net Profit, the most profitable turned out to be BINANCE:LINKUSDT , followed by BINANCE:BNBUSDT , BINANCE:DASHUSDT , BINANCE:BTCUSDT , BINANCE:LTCUSDT , BINANCE:ONTBTC , BINANCE:ZECUSDT , BINANCE:ADAUSDT . The indicator I use to backtest and create automated alerts is private and called Cyato H.A. Swing. It uses an Heikin Ashi bullish and bearish candles strategy. The goal of the indicator is to quickly find and setup a Buy & Sell strategy, on any market. You can get it using the link below. To receive more analysis, you can follow my profile. Thanks!
by cyatophilum
2