There is a common expression in the market that \u2018Trend is your friend,\u2019 the appropriate interpretation would rather be, \u2018Trend is your friend only when you can rightly identify it.\u2019 Traders have developed numerous techniques to identify this very trend, including the Heikin Ashi. The main advantage of Heiken Ashi is that it allows you to spot trends more easily.Heikin Ashi is both a technical indicator and a chart type. The word gets its meaning from the Japanese language, Heikin means \u201caverage\u201d and Ashi means \u201cpace,\u201d taken together Heikin Ashi means \u201caverage pace of the price.\u201d It is not only used to identify market trend signals but also to forecast price movements.While other candle charts are based on the real-time price movement of the stock, Heikin Ashi represents the average price movement of the stocks. This helps in avoiding the noise in the charts. The absence of market noise results in a clear illustration of market trends and direction, which helps determine potential price movements. This trading technique assists traders in identifying when they should hold on to a trade, pause a trade, or identify if a reversal is about to occur. Traders can adjust their positions accordingly, i.e., either avoid making losses or lock in a profit on the chosen position.While all the candles are composed on the OHLC ( open high low close ) series, the Heikin Ashi uses a modified formula and has a COHL ( close open high low) approach. Although both, the candlesticks and Heikin Ashi denote the price movements with the colour of the candles, the main difference between the two lies in the candle construction, while candlesticks are plotted on real-time price movement, the Heikin Ashi are constructed on the averaged prices, providing more smoother chart patterns.Close= 1\/4 \u200b (Open+High+Low+Close)(The average price of\u2026<\/p>","protected":false},"excerpt":{"rendered":"
There is a common expression in the market that \u2018Trend is your friend,\u2019 the appropriate interpretation would rather be, \u2018Trend is your friend only when you [\u2026]<\/span><\/p>","protected":false},"author":0,"featured_media":2796,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[35],"tags":[],"_links":{"self":[{"href":"https:\/\/afluxcoin.com\/pt\/wp-json\/wp\/v2\/posts\/4642"}],"collection":[{"href":"https:\/\/afluxcoin.com\/pt\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/afluxcoin.com\/pt\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/afluxcoin.com\/pt\/wp-json\/wp\/v2\/comments?post=4642"}],"version-history":[{"count":0,"href":"https:\/\/afluxcoin.com\/pt\/wp-json\/wp\/v2\/posts\/4642\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/afluxcoin.com\/pt\/wp-json\/"}],"wp:attachment":[{"href":"https:\/\/afluxcoin.com\/pt\/wp-json\/wp\/v2\/media?parent=4642"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/afluxcoin.com\/pt\/wp-json\/wp\/v2\/categories?post=4642"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/afluxcoin.com\/pt\/wp-json\/wp\/v2\/tags?post=4642"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}