Trading cryptos is interesting and quite rewarding for those that know their way around it. For those that don’t, one of those things you want to watch out for is trading a chart filled with noise.
Noise in trading are outliers, they paint a deceptive picture of the direction the market is going therefore tricking you into making decisions you would otherwise not make. Traders that are beginners, even sometimes professionals, fall into this trap every now and then.
To eliminate noise, traders have over the years come up with various methods. Some of them are Heiken Ashi, Renko, Kagi, point and figure.
HEIKEN ASHI
Heiken Ashi means “average bar” in a Japanese. Unlike the traditional candlestick which is described by 4 numbers OHLC, Heiken Ashi’s COHL are calculated based on numbers from the traditional candlestick’s OHLC. If you are curious on how the full calculation is done, check https://www.investopedia.com/trading/heikin-ashi-better-candlestick/. You can use Heiken Ashi on tradingview.com by selecting it from the dropdown of list of available candle types.
RENKO CHART
Renko Charts is another candle developed by the Japanese. The renko charts is made of bricks of equal size. The size can be chosen arbirarily ( this is not advisable) or calculated from ATR (Average True Range). Renko chart can be used on tradingview.com by selecting from the list of available candle types as shown.
I hope this post has shed a little bit more light to ways in which you can trade more without having to fear noise anymore. Happy Trading.
PS: Both renko and heiken ashi can be used as the source of filtering the market on chartless.co.