Set trading timing by understanding the median and average priceEthereum / TetherUSBINANCE:ETHUSDTreadCrypto Hello? Nice to meet you, fellow traders. If you "follow" me, you can always get new information quickly. Have a great day today. ------------------------------------ Heikin Ashi charts are useful for viewing trends. However, since the Open and Close values differ from those on a standard chart, it causes inconvenience during actual trading. Therefore, to eliminate this inconvenience, the HA-Low and HA-High indicators were created to display bullish or bearish reversals on a standard chart when specific conditions are met. In other words: 1. The HA-Low indicator is designed to be displayed when the Heikin Ashi candles transition from bearish to bearish to bullish, and when the RSI indicator rises from the oversold zone. 2. The HA-High indicator is designed to be displayed when the Heikin Ashi candles transition from bullish to bullish to bearish, and when the RSI indicator falls from the overbought zone. Therefore, the indicators are displayed as follows: - Since the HA-Low indicator is generated when specific conditions are met during a bullish reversal of the Heikin Ashi candles, it can be seen as indicating the low point. The HA-High indicator can be seen as marking a peak because it is generated when specific conditions are met during a Heikin Ashi candlestick reversal. Therefore, if the price finds support near the HA-Low indicator, it is a buying opportunity, and if it encounters resistance near the HA-High indicator, it is a selling opportunity. - However, since the following situations may occur, it is important to verify support levels when trading. The period from when the HA-Low indicator is generated until the price rises and meets the HA-High indicator is referred to as an uptrend, and the upward movement following the HA-High indicator is called a stepwise uptrend. Conversely, the period from when the HA-High indicator is generated until the price falls and meets the HA-Low indicator is referred to as a downtrend, and the downward movement following the HA-Low indicator is called a stepwise downtrend. Therefore, it can be said that a stepwise decline corresponds to a buying opportunity to eventually transition to an uptrend, while a stepwise rise corresponds to a selling opportunity to transition to a downtrend. - To understand these movements and patterns, one must understand regression to the median and the mean. Therefore, one must understand the concept of the price moving average, which is the first thing learned when studying charts. - The HA-Low and HA-High indicators shown above form a pair, and they also possess a median value. The chart above displays the median values of the HA-Low and HA-High indicators. While trading timing is determined by confirming support levels in the HA-Low and HA-High indicators, it can be seen that passing through the median position is the final opportunity to take action. - Like Bollinger Bands, the HA-Low and HA-High indicators exhibit expansion and convergence. Therefore, the interpretation method of Bollinger Bands can also be applied. The example chart above is an Ethereum chart, and looking at the current state of the HA-Low and HA-High indicators, you can see that they have expanded. Therefore, for the price to turn upward, it must show a converging pattern. This convergence may appear rapidly as the price fluctuates up and down, or it may appear as the price stagnates sideways from its current position. Regardless of how it appears, the price will eventually rise from the HA-Low indicator and meet the HA-High indicator. - In this sense, when we encounter the HA-Low indicator, we should trade aggressively to increase our holdings of coins (tokens). Even if you fail to react in time and end up losing money while trading, the HA-Low indicator represents a low point, making it a price level where a quick transition to profit is possible. Therefore, you must prepare for a rise by trading boldly to increase the quantity of coins (tokens) held with the profits, or by making staggered purchases with your investment funds. However, since the initial upward trend can take a long time, you must pay attention to adjusting your investment proportion. Therefore, trade at the purchase price and sell a portion when the price rises. Then, buy again when the price falls again. This trading strategy is designed to protect your investment capital by selling a portion when the price increases to gradually increase your holdings. Because the cryptocurrency market trades in fractional units, it is easy to generate profits even with frequent trading. The time to actively utilize this to increase either your profits or your holdings is when the price is near the HA-Low indicator. In other words, you should focus your trading efforts when a stepwise decline is underway. - You may also use the Fibonacci ratio tool to mark the median value. In this case, the median value is at 0.5. - Since the HA-Low and HA-High indicators use Heikin Ashi candle values, they are expressed as average values. Therefore, you should consider the locations where the HA-Low and HA-High indicators are displayed as the midpoint between the low and high points. To complement this, the DOM(-60) and DOM(60) indicators were created. The point where the DOM(-60) indicator is generated is where the low point began, and the point where the DOM(60) indicator is generated is where the high point began. Therefore, if the DOM(-60) or DOM(60) indicators are generated, you must carefully observe the movement. - Because the median or average value of prices on a chart can only be confirmed after price movements have occurred, it is not easy to trade based on these median or average values during actual trading. The HA-Low and HA-High indicators use the values of Heikin Ashi candles. In this regard, the combination of the DOM(-60) and HA-Low indicators, along with the DOM(60) and HA-High indicators, can be said to provide us with the opportunity to choose the timing for our trades. We must focus on finding the right time to start a trade when the DOM(-60) indicator is generated or encountered, and we must focus on finding the right time to close a trade when the DOM(60) indicator is generated or encountered. In this sense, 1. We must find the timing to buy when the price is supported and rising within the zone formed by the DOM(-60) and HA-Low indicators, 2. We must find the timing to sell when the price is resisted and falling within the zone formed by the DOM(60) and HA-Low indicators. - Thank you for reading to the end. I wish you successful trading. --------------------------------------------------