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* Home * BASED ECOSYSTEM * BASED FINANCE * BASED NEXT GEN * PROMETHEUS NFTs * TWISTED NODES * QUICK LINKS * BLOG An Ecosystem of Omnichain Multi-Faceted DeFi Protocols for Diverse Revenue Strategies #based * Home * BASED ECOSYSTEM * BASED FINANCE * BASED NEXT GEN * PROMETHEUS NFTs * TWISTED NODES * QUICK LINKS * BLOG * * * BASED LABS - DEFI TEAM * * * BASED ECOSYSTEM EARN | TRADE | BRIDGE BASED FINANCE PARTNERS & INTEGRATIONS LAYER ZERO Omnichain Interoperability Protocol CHAINLINK Decentralized Blockchain Oracle Network AXELAR NETWORK Web3 Interoperability Platform MATRIX FARM Multichain Yield Optimizer GELATO Web3's Decentralized Backend DEFILLAMA DeFi Resource & TVL Aggregator FIREBIRD FINANCE Multichain DEX Aggregator VFAT TOOLS Yield Farming Dashboard DEBANK Multichain Portfolio Tracker COINGECKO Cryptocurrency Ranking OBELISK AUDITING Smart Contract Auditing ASSURE DEFI Information Resources & Project Verifications ARBITRIM Blockchain BASE Blockchain AVAX Blockchain FANTOM Blockchain POLYGON Blockchain ZKSYNC Blockchain BLOG BASED NEWS Blog 9 min read BENEFITS OF USING HEIKIN-ASHI FOR TECHNICAL ANALYSIS January 19, 2024 BENEFITS OF USING HEIKIN-ASHI FOR TECHNICAL ANALYSIS EXPLORING THE BENEFITS OF USING HEIKIN-ASHI FOR TECHNICAL ANALYSIS Technical Analysis is a powerful tool for any trader, and Heikin-Ashi is an excellent indicator that can be used to gain an edge in the market. In this article, we will be exploring the benefits of using Heikin-Ashi for technical analysis. We’ll discuss what Heikin-Ashi is and how it can help you identify trading opportunities, as well as how to correctly interpret Heikin-Ashi charts. We will also examine how Heikin-Ashi differs from traditional candlestick charts, and how you can use Heikin-Ashi to create a more accurate picture of the market. Finally, we’ll look at how to incorporate Heikin-Ashi into your trading strategy, and discuss the potential benefits you can gain from using it. Whether you’re a beginner or an experienced trader, this article will provide you with an in-depth look at the advantages of using Heikin-Ashi for technical analysis. WHAT IS HEIKIN-ASHI? Heikin-Ashi is a charting method used in technical analysis to identify trends and patterns. It is a type of candlestick chart that averages out the open, high, low and close prices of the previous candle over a certain period of time. The Heikin-Ashi chart provides a much smoother view of the market than traditional candlestick charts. It uses the open and close prices of the previous candle and averages them with the current open and close prices. This gives us a better understanding of the overall trend and direction of the market. Heikin-Ashi also helps to identify support and resistance levels better than traditional candlestick charts. Heikin-Ashi candles are larger than traditional candlesticks and they are colored differently depending on whether the current candle is up or down. This makes it easier to identify when prices are beginning to reverse. Additionally, Heikin-Ashi identifies false breakouts and helps to stay away from buying or selling too early. Overall, Heikin-Ashi is an excellent tool for technical analysis and can be used by both experienced and beginner traders. It helps to identify trends and patterns in the market and can be used to accurately predict price movements. Heikin-Ashi also helps to identify support and resistance levels, as well as false breakouts, which can be incredibly useful for traders. BENEFITS OF USING HEIKIN-ASHI FOR TECHNICAL ANALYSIS Heikin-Ashi is an advanced technical analysis tool used to identify trends and predict future movements in the market. It is a modified version of the traditional Japanese candlestick chart, and offers traders a more accurate picture of price action. To create a Heikin-Ashi chart, the open, high, low, and close prices from the previous period are combined with the open, high, low, and close prices from the current period to create a single candlestick. This helps to reduce noise in the chart and make it easier to identify patterns and trends. Heikin-Ashi also has the advantage of being able to filter out false signals and provide traders with a more reliable picture of the market. Since it takes into account the open, high, low, and close prices from both the current and previous period, Heikin-Ashi is able to identify trends that may not be visible in traditional candlestick charts. This makes it easier to identify potential trading opportunities and make more informed decisions. Additionally, Heikin-Ashi can also be used in combination with other technical analysis tools to create a more comprehensive picture of the market. Overall, Heikin-Ashi is an effective and efficient tool for technical analysis. By combining the open, high, low, and close prices from both the current and previous period, Heikin-Ashi is able to filter out false signals and provide traders with a more reliable picture of the market. This helps traders identify potential trading opportunities, make more informed decisions, and increase their chances of success in the market. INTERPRETING HEIKIN-ASHI CHARTS Heikin-Ashi is a type of candlestick chart which is used by technical analysts to identify short-term trends within a given price range. It is a form of “dual-candlestick charting” which is designed to smooth out some of the volatility found in the traditional candlestick chart. The Heikin-Ashi chart is composed of a series of small and large candles that contain the open, high, low, and close prices for a given period of time. The two types of candles are the Heikin-Ashi doji and the Heikin-Ashi spinning top. The doji candle is a type of candle which is composed of a single short, wide candle whose open and close prices are virtually the same. The spinning top is a type of candle which is composed of a pair of short, wide candles whose open, high, and low prices are similar, but whose closing prices are different. Heikin-Ashi charts are used to identify short-term trends and identify trading opportunities. The Heikin-Ashi chart is designed to smooth out some of the price volatility found in traditional candlestick charts, which can be beneficial for traders who are looking for more reliable signals. Further, Heikin-Ashi charts can be used to identify longer-term trends and can be used to identify areas of support and resistance. Finally, Heikin-Ashi charts can be used to identify trend reversals and can be used as part of a broader technical analysis strategy. By correctly interpreting Heikin-Ashi charts, traders can gain an edge in the market and improve their trading performance. COMPARING HEIKIN-ASHI TO TRADITIONAL CANDLESTICK CHARTS Heikin-Ashi is a powerful technical analysis indicator that is used by many traders to identify trading opportunities and interpret markets. Heikin-Ashi is similar to traditional candlestick charts in that they both use the same type of data: open, high, low, and close prices. However, the key difference is that Heikin-Ashi uses a modified version of the traditional candlestick chart, which takes into account the open, high, low, and close of the preceding period in order to create a smoother and more accurate representation of the market. Heikin-Ashi charts are useful for identifying trends, support and resistance levels, and areas of volatility. Heikin-Ashi charts are easier to read and interpret than traditional candlestick charts and provide a clearer picture of the market’s direction. Heikin-Ashi can also be used to spot reversals and consolidation patterns and can be compared to traditional candlestick charts to confirm or deny a potential trading opportunity. In conclusion, Heikin-Ashi provides a powerful tool for any trader looking to gain an edge in the market. Heikin-Ashi is an excellent indicator for interpreting the market and identifying trading opportunities, and it can be used in conjunction with traditional candlestick charts to gain a more precise view of the market. CREATING A MORE ACCURATE PICTURE OF THE MARKET USING HEIKIN-ASHI Heikin-Ashi is a type of candlestick chart that has been used for centuries in Japan. It is based on the open, high, low, and close prices of a financial instrument, although it differs from traditional candlestick charts in that it is calculated using a different formula. The Heikin-Ashi formula averages the candle’s open, close, high, and low prices, which helps to create a smoother, more accurate picture of price action. This makes it easier to identify trends and potential trading opportunities, as well as predict future price movements. Heikin-Ashi charts are also better at filtering out the noise and identifying true trends. When using traditional candlestick charts, it can be difficult to differentiate between a real trend and a false trend caused by short-term price fluctuations. However, Heikin-Ashi charts are better at filtering out the noise and identifying true trends. This makes it easier to accurately assess the strength of a trend and make more informed trading decisions. In addition, Heikin-Ashi charts are also better at identifying support and resistance levels. By looking at the Heikin-Ashi chart, traders can identify points where the price may have difficulty rising further or dropping further. This can be a great way to identify potential entry or exit points for trades. Overall, Heikin-Ashi is a powerful tool for traders who want to create a more accurate picture of the market. By using the Heikin-Ashi formula to average the open, close, high, and low prices, traders can easily identify trends, predict future price movements, and identify support and resistance levels. This makes it an invaluable tool for any trader who is looking to gain an edge in the market. INCORPORATING HEIKIN-ASHI INTO YOUR TRADING STRATEGY Heikin-Ashi is a type of candlestick chart designed to make it easier to identify trends. Heikin-Ashi charts differ from traditional candlestick charts in that they use a different formula to calculate the open and close prices of each candle. Instead of taking the open, high, low, and close prices of the current period, Heikin-Ashi takes the open and close prices of the previous period and averages them together. This creates a smoother chart that is easier to analyze. Heikin-Ashi can be used to identify trends by looking for clusters of candles that move in the same direction. A cluster of three or more candles that all have the same direction can be an indication that the trend is strong. Heikin-Ashi can also be used to identify reversals and confirmations of trends. If three or more candles move in the opposite direction of the trend, this can indicate that the trend may be reversing. Incorporating Heikin-Ashi into your trading strategy can be a powerful tool for identifying entry and exit points. By using the Heikin-Ashi chart, you can look for clusters of candles that move in the same direction and enter into a position when it is confirmed. You can then use the Heikin-Ashi chart to identify reversals and confirmations of trends and use this information to exit your position. Heikin-Ashi can also be used to identify support and resistance levels, allowing you to set stop-loss and take-profit orders. By using Heikin-Ashi, you can gain an edge in the market and take advantage of trading opportunities. Blog 7 min read FIBONACCI RETRACEMENT FOR TECHNICAL ANALYSIS EXPLAINED January 19, 2024 FIBONACCI RETRACEMENT FOR TECHNICAL ANALYSIS EXPLAINED EXPLORING FIBONACCI RETRACEMENT FOR TECHNICAL ANALYSIS Throughout the world of financial trading and technical analysis, the Fibonacci Retracement tool is considered to be a reliable and powerful tool for analyzing price movements. In this article, we’ll be exploring how to use Fibonacci Retracement for technical analysis and why it has become such a popular tool amongst traders. We’ll cover topics such as how to access Fibonacci retracement levels, what kind of patterns they reveal, and how they can be used to make smarter trading decisions. By the end of this article, you’ll have a comprehensive understanding of how to utilize Fibonacci Retracement for technical analysis and why it has become an essential tool for financial traders. So, let’s get started! WHAT IS FIBONACCI RETRACEMENT? Fibonacci Retracement is a popular trading tool utilized by technical traders to identify levels of support and resistance in a price chart. This tool works by plotting horizontal lines on a chart, at predetermined Fibonacci levels, that correspond to the ratio of 23.6%, 38.2%, 50%, 61.8%, and 100%. These lines help traders identify potential entry and exit points in a price chart. Fibonacci Retracement strategies are most commonly used to identify support and resistance levels on a chart, as well as time frames for entering or exiting trades. Traders can also use Fibonacci Retracements to identify potential price targets. To do this, traders simply take the Fibonacci Retracement levels, which were discussed earlier, and plot them against the current price level. By doing this, traders can identify potential price targets that are based on Fibonacci levels. This provides traders with an idea of where prices may move in the future and allows them to determine if they should enter into a trade or not. HOW TO ACCESS FIBONACCI RETRACEMENT LEVELS To access Fibonacci Retracement levels, you will first need to find a charting platform that offers Fibonacci Retracement tools. Most charting platforms include charting tools such as Fibonacci Retracements, allowing traders to quickly identify and access the levels. Generally speaking, Fibonacci Retracements will be depicted within the chart as a series of horizontal lines, with each line representing a different Fibonacci level. Once the Fibonacci Retracements are plotted on the chart, traders can easily discern the various levels and utilize them for analysis. The Fibonacci Retracement tool can be used to reveal distinct patterns that may indicate potential support or resistance levels. By observing the Fibonacci levels, traders can identify patterns in the price action that can be used to inform their trading decisions. For instance, when the price of a security is retracing back to a Fibonacci level of support or resistance, it could be a signal to buy or sell depending on the trader’s strategy. The Fibonacci Retracement tool can also be used to identify entry and exit points, allowing traders to enter and exit a position with confidence. By mastering the art of accessing and analyzing Fibonacci Retracement levels, traders can gain insight into the underlying price patterns of a security, allowing them to make more informed trading decisions. With the help of the Fibonacci Retracement tool, traders can gain an edge in the markets that can help them to achieve their trading goals. WHAT KIND OF PATTERNS DO FIBONACCI RETRACEMENTS REVEAL? Fibonacci Retracements are one of the most popular technical analysis tools used by traders to identify potential support and resistance levels. The tool plots horizontal lines at pre-defined levels on the chart, which can be used to identify potential reversals or continuation of the current trend. By plotting pre-defined Fibonacci numbers into the chart, traders can identify where the price might find support and resistance. The most commonly used Fibonacci Retracements are the 0.382, 0.5 and 0.618 levels, which correspond to 38.2%, 50% and 61.8% of the initial trend move. When the price retraces from the initial trend, these levels tend to act as support or resistance and can indicate potential turning points in the market. Traders can also use the Fibonacci Retracement levels to identify potential entry points into the market, as well as potential profit targets. By combining additional technical indicators and analysis tools with Fibonacci Retracements, traders can identify high-probability reversal patterns, as well as potential entry points. Fibonacci Retracements can also be used to identify potential trends and identify potential support and resistance levels. With a comprehensive understanding of how to use Fibonacci Retracements, traders can make better informed trading decisions. HOW TO USE FIBONACCI RETRACEMENT TO MAKE TRADING DECISIONS The Fibonacci Retracement tool is a popular tool amongst traders and technical analysts as it allows them to identify potential entry and exit points for a financial instrument. To access Fibonacci Retracement levels, traders can use charting software such as MetaTrader4 (MT4) and click on the Fibonacci Retracement tool icon located in the toolbar. This will allow traders to draw lines in the form of Fibonacci ratios to the highest and lowest points of the price chart. The most commonly used Fibonacci levels are 0.382, 0.5, and 0.618. Fibonacci Retracement levels can reveal a variety of patterns that can help to inform trading decisions. For example, if the price reversed from the 0.382 level, this could potentially indicate a bullish trend. Likewise, if the price failed to break through the 0.618 level, this could indicate a bearish reversal in the trend. Recognizing such patterns can be a valuable asset for any trader, as it can help them to identify entry and exit points for their trades. When using Fibonacci Retracement for technical analysis, it is important to note that any trading decision should be made in conjunction with other technical analysis tools. Fibonacci Retracement should be used in combination with other indicators and price action analysis to ensure that you are making a well-informed trading decision. With this in mind, Fibonacci Retracement is a powerful tool that can help traders to make more informed trading decisions and increase the likelihood of success when trading the financial markets. OTHER STRATEGIES TO COMBINE WITH FIBONACCI RETRACEMENT In addition to Fibonacci Retracement, there are several other strategies that traders use to make informed decisions in the market. These strategies can be used in combination with Fibonacci Retracement to provide a fuller picture of market trends. One of the most popular strategies is the Moving Average Convergence/Divergence (MACD). This technical analysis tool uses two exponential moving averages to identify trends in the market. By analyzing the successive difference between the two averages, it can be used to identify potential buying and selling opportunities. When MACD is used in combination with Fibonacci Retracement, traders can get a better idea of when is the best time to enter or exit a position. Another strategy that can be used in combination with Fibonacci Retracement is Support and Resistance levels. Support and resistance levels indicate the levels at which the price of a financial instrument is likely to find support or resistance. By using both strategies together, traders can identify potential price movements and set realistic targets for both buying and selling. Using Fibonacci Retracement in combination with the strategies mentioned above can be a powerful tool for technical analysis. By combining both strategies, traders can gain a deeper insight into the market and make more informed decisions. HOW TO INCORPORATE FIBONACCI RETRACEMENTS INTO YOUR TRADING PLAN The Fibonacci Retracement tool is based on the Fibonacci sequence, where each number is the sum of the two preceding numbers. This mathematical pattern appears in nature and can be used to analyze financial markets and make better trading decisions. To access the Fibonacci Retracement tool, you’ll need to have a charting software that supports it, such as the MetaTrader 4 platform. Once you have the tool available, you can open up a chart and select to draw the Fibonacci Retracement levels. It’ll then plot out the Fibonacci levels from a high to a low of the price action you have selected. The Fibonacci Retracement tool is used to spot potential reversal points in price movements. When a market retraces by a certain percentage, it could indicate a potential change in the trend. Traders can use the Fibonacci Retracement tool to identify these retracement levels and set their trading plan accordingly. This can involve setting entry and exit points, profit targets, and stop losses to minimize risk. By incorporating Fibonacci Retracements into your trading plan, you can make more informed decisions and take advantage of potential trading opportunities. Blog 6 min read HISTORY OF THE ICHIMOKU CLOUD January 19, 2024 HISTORY OF THE ICHIMOKU CLOUD HISTORY OF THE ICHIMOKU CLOUD The Ichimoku Cloud was first introduced in 1999 by Ichiho Sasai, a professor at the University of Tokyo. In his paper, Sasai described how a market trend could influence the markets as a whole. This paper has been referred to as the founding document for modern financial theory. Since then, the Ichimoku Cloud has been used as a framework for studying market trends. Today, it is still used in that manner and as a tool to identify trend shifts. As its name suggests, the Ichimoku cloud looks like an impenetrable black box. However, inside you can find all kinds of information about the markets it monitors. This includes news stories that are related to the clouds and details on when and where it changes. You can also find data on how it affects trading strategies. COMPONENTS OF THE ICHIMOKU CLOUD The Ichimoku Cloud is a trading strategy that uses the market action in one direction and then against it. This strategy can be used before an investment to identify areas of influence for the current market conditions. The Ichimoku cloud is a set of moving Prices, referred to as clouds. Each cloud represents a different risk/reward profile. The idea is to identify which clouds appear to be moving in the same direction, and buy those clouds that appear to be largest in size. Ichimoku clouds have two parts: a Moving Average Cloud Change (MACC) and a Time-Lapse MACC. The Moving Average Cloud Change represents how often the ichimoku cloud changes over time, while the Time-Lapse MACC represents how long that change has occurred since it first occurred. When looking at ichimoku clouds, it is important to recognize them by both parts of the cloud. ICHIMOKU CLOUD EXTRA USE CASES As noted above, the Ichimoku cloud is a strategy tool that can help you Intraday trade. However, it can also be used as a method of portfolio management. Some users have found that using the Ichimoku cloud as a way to manage your investments works well. You can set up funds within the cloud to represent your portfolio holdings. This way, you can look at your stocks individually and see changes in profit and loss over time. You can also set up holidays for individual funds to coincide with events or events you want them to focus on. You can also combine the ichimoku cloud with other trading tools. Using it alongside swing trading software or using it in conjunction with market orders and strategies works well. UPSIDE OF THE ICHIMOKU CLOUD When the market reaches a high point, it is at times called a spot market. At these times, speculation becomes prevalent and prices spike. If you are interested in this type of market, then you should be aware of the Ichimoku Cloud. The Ichimoku Cloud is a concept introduced by Marcie Keison in her book The Ichimoku Chain elders. The Ichimoku Cloud is a diagram that shows four different price regions within an asset. The four regions are called upper, middle, downdrafts, and crucial levels. An asset can be placed in one of the four regions based on how it trends over time. The idea with the Ichimoku Cloud is that during speculative periods, trading becomes very complicated and tight-minded. IS IT FOR LONG TERM INVESTORS? The Ichimoku Cloud is one of the more unknowns tools in Cryptocurrency trading, but it can be used for long term investor gains. This tool was created by Yamaguchi in 1987 as a way to spot trends in the market. Over the years, he continued to improve the cloud and make it more liquid which is why we have it today. Today, the cloud has many different features that you can use. You can find them all over the internet, but here are some of them: moving averages, Ichimoku levels, trendlines, and historical patterns. These features can be used in different ways, such as finding support or resistance levels, identifying patterns in data, or predicting future prices. IS IT FOR SHORT TERM INVESTORS? The Ichimoku indicator has been the basis for many short-term investments. As we discussed earlier, Era-based investors have a tendency to place a high priority on returns at the expense of time. That is why they tend to invest in stock market ETFs and tracks. That is why they tend to invest in stock market ETFs and tracks. That is why they typically do not hold onto their investments for long. For instance, they may put money into a stock that makes $5 per share now but that rises to $10 per share in just a few months. Or they may buy a track that increases in value by 10% over the next six months. This is not to say that these individuals do not make gains on their bets, but it does take them out of the longer-term picture. It can also affect their confidence in the markets moving forward. HOW TO USE THE ICHIMOKU KOUDOU CHART? The ichimoku cloud is a indicator tool used in trading. It is created using a mixing of moving averages, Ichimoku parameters, and forecasts to create a powerful indicator. Moving averages help determine when assets are changing levels of value. When these values change at a faster rate, it indicates an asset is changing value. Using the Ichimoku Cloud is done by placing it on your trading platform. The more empty space there is around the cloud, the more influence it has. There are two ways to use the cloud. The first is to place parameters within it and the second is to take advantage of its features and use them for trading purposes. This article will discuss both ways so that you can use the Ichimoku Cloud for trading. WHAT IS THE FIRST THING YOU SHOULD KNOW ABOUT THE ICHIMOKU KOUDOU CHART? The Ichimoku cloud is a charted tool that can be used to study the market trends. The cloud can be accessed via a chart and will display several lines that relate to the markets and their trends. The lines are called trend lines and they represent the way the market is moving. When one line is higher than another, it indicates a positive market trend. When one line is lower than another, it indicates a negative market trend. When there are many lines with low points, it means the markets are not moving very fast. This is how Ichimoku clouds get their name, because they look like large waves on the charts. These waves can change shape and color, which corresponds to the markets being up or down in strength. A soft-edged cloud would show positive changes but no jumps off of those changes. ABOUT US We are a team that is passionate about developing the next generation of financial technology. We believe that decentralized finance will redefine the way we think about money and will forever change the dynamics of investing. Our team is made up of experienced developers, entrepreneurs, business professionals and investors who are committed to building the future of finance. SERVICES Currently Offering but not limited to: – White Label and Co-Branded DeFi 1.0 & 2.0 Off the Shelf Protocols – NFT Staking & Marketplace Listing – Contract Automation – Deployment of Oracles & Randomizers We can deploy on your behalf or provide Off the Shelf Pre-Audited Contracts with Custom Tokenomics and Diverse Modules Contact CONTACT US Your Name Phone Number Email Subject Your Message * * * © 2024. All rights reserved by Based Labs