In our latest Learn 101 livestream session, crypto experts shared insights on the shifting dynamics of the stablecoin ecosystem.

 are making a comeback, but this time, the competition is heating up. While 

 continues to dominate the market, a new wave of 

 is emerging, each with its own proposition. From institutional-backed tokens to 

, the race is on to determine which stablecoin will take the lead. What sets these newcomers apart — and could any of them realistically challenge USDT’s throne?

, we tackle the big question: Newcomers vs. USDT: Who Will Win?

, provides a recap of our Learn 101 livestreams, offering you comprehensive expertise and insights from leading figures in the crypto industry in case you miss the livestream.

Joining the livestream on Apr 24, 2025, were two distinguished guests: Paz Gonzalez, trader and founder of 

magazine, and Jip Molenaar, full-time trader and co-founder of Tribe Capital. Under the moderation of Sabrina Chua, Crypto Evangelist and Senior Content Strategist at Bybit, this episode takes a deep dive into the shifting dynamics of the stablecoin ecosystem.

Why the world is suddenly crazy about stablecoins

Stablecoins are once again making headlines — but what’s driving this renewed momentum? Several key developments have pushed stablecoins into the mainstream conversation, including Donald Trump’s recent proposal for a 

. According to Paz Gonzalez, these announcements signal a broader shift tied to the weakening influence of the US dollar. In times like these, stablecoins could gain mass adoption, giving governments a way to reassert monetary control through a digital proxy.

Jip Molenaar agrees with Gonzalez, adding that Bitcoin is unlikely to become the world’s primary currency, despite what many once believed. Instead, Molenaar sees Bitcoin’s future role as that of a store of value — 

 — while stablecoins will take on the role of everyday money, used for payments, bill settlements and daily transactions. 

, Molenaar argues, has helped bring digital assets into the political mainstream, making the concept of crypto usage more palatable to the general public than ever before.

Molenaar also shares his personal experience transitioning from euros to USDT, a process he describes as challenging and significant. Living in Europe, switching to a US dollar–pegged stablecoin wasn’t easy — and that’s precisely why he believes most users won’t readily jump to new alternatives. For many, USDT and 

Paz sees Fidelity’s entry into stablecoins as a bullish signal for the industry. As a well-established and trusted financial institution, Fidelity’s involvement could sway skeptics who have traditionally avoided crypto. Its participation brings credibility — and potentially, a new wave of adoption.

He also emphasizes that the legitimacy of any currency, fiat or crypto, depends upon being backed by a clear source of value. Historically, 

. For stablecoins to earn that trust, the same principle applies — they must be transparently backed. Today, more investors recognize that leading stablecoins are supported by reserves, and are subject to increasing regulatory oversight.

However, despite this progress, Molenaar remains cautious. He warns that another event like the 

 is still possible if stablecoins aren’t properly backed and transparently managed. Without clear support mechanisms, he believes trust will erode — and widespread adoption will stall.

USDT currently holds the largest market share among all stablecoins and is the most actively traded. Molenaar attributes this dominance to the convenience and wide acceptance of USDT across trading platforms. He points out that the infrastructure for USDT is already deeply entrenched in the crypto ecosystem, making it far easier to execute trades and move funds. Because of this strong foundation, he believes it will be extremely difficult for any competing stablecoin to unseat USDT.

Gonzalez agrees: while she personally holds some USDC, she says that when people ask her to send a stablecoin, it’s almost always USDT. Even though USDC has made efforts to challenge USDT’s dominance, Gonzalez doesn’t see that happening anytime soon — if ever. She also underscores the fact that stablecoins like USDT aren't meant to be investments in the way Bitcoin or altcoins are. Instead, they serve more practical purposes, facilitating transactions and providing stable on-chain alternatives to fiat.

Molenaar adds that older generations, particularly baby boomers, tend to wait until new markets are validated by trusted institutions before getting involved. With firms like Fidelity now backing crypto through 

 (ETFs) and exploring stablecoin adoption, that validation is underway. Because Fidelity has integrated USDT into its ecosystem, Molenaar believes that conservative investors will naturally gravitate toward it over less familiar alternatives.

Gonzalez also shares her approach to risk management. Rather than going all-in on one asset, she diversifies and experiments cautiously — allocating small amounts to new opportunities. 

, for example, is one method she uses to generate passive income while testing out new protocols or tokens.

When it comes to adoption, Gonzalez sees real-world use cases driving interest in stablecoins. She mentions the new Wyoming stablecoin, which offers local taxpayers a slight reduction on their annual tax bills. While its benefits may currently apply to a small group, she believes this kind of practical utility is crucial. To achieve broader adoption, stablecoins — including smaller, emerging ones — need meaningful use cases tied to local economies. 

Still, for global accessibility and widespread usage, she maintains that a well-established option such as USDT is essential.

Stablecoins and trading — what really matters to traders

Molenaar is all-in on USDT, choosing to avoid the risks that come with lesser-known stablecoins. For him, USDT offers the highest liquidity and the lowest risk, due to its widespread adoption. While he's open to switching if a new, dominant stablecoin emerges, he’s not willing to gamble on smaller or less established options at this time.

Gonzalez adds an important perspective: stablecoins don’t just enable transactions — they also reflect the health and movement of the broader crypto market. Since stablecoins support liquidity within cryptocurrency networks, their flows can signal shifts in underlying asset trends. Traders are beginning to pay more attention to this relationship.

While most stablecoins are backed by USD, some stablecoin creators are now exploring alternative pegs, such as gold. But for Gonzalez, the backing isn't the main concern: usability is. She prioritizes the ease with which a stablecoin can be used for trading. In her view, investors today care more about functionality and integration with platforms than the specific assets backing the coin. 

Molenaar agrees, adding that ease of use often comes down to habit — knowing the ins and outs of how to trade with a particular coin saves time and effort. He also points out that staking stablecoins typically yields higher returns than do traditional bank savings accounts. That’s one reason he keeps minimal funds in banks — in addition to his distrust of the traditional banking system. He prefers to let his funds work for him through stablecoin staking.

Gonzalez also sticks with USDT because of its simplicity and reliability. She takes a cautious, thoughtful approach to her finances, due to her awareness of how hard she works to earn her money. When trading with USDT, she invests time in researching opportunities. Therefore, she believes that having a deep understanding of stablecoins is crucial in order to make smart financial decisions.

Both Molenaar and Gonzalez highlight the importance of using a trusted platform when holding and trading stablecoins. Molenaar uses Bybit because he feels confident his funds are secure there, and Gonzalez echoes this sentiment — rather than spreading her assets across multiple exchanges, she sticks with Bybit for its reliability and trustworthiness.

This episode of Learn 101 offers a thought-provoking look at the battle between emerging stablecoins and the reigning stablecoin leader, USDT. While newer stablecoins may bring niche advantages and localized utility, USDT’s deep liquidity, global reach and entrenched usage continue to give it a clear edge. For now, USDT remains the go-to choice. But as the ecosystem continues to evolve, the race is far from over.

Intermediate

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Learn Live ICYMI: Can the upcoming stablecoins beat USDT?

Bybit Megadrop is a token launch platform that lets users earn free airdrops by subscribing to Fixed-Term Bybit Savings plans and completing simple tasks.

The crypto world never sleeps — and neither do opportunities to earn. One of the most exciting ways to get in early on promising projects is through token launches, whereby new cryptocurrencies are introduced to the market. Traditionally, early participation comes with barriers: you might need to stake, trade heavily or rely on luck in oversubscribed launchpads.

Bybit Megadrop changes the game by offering a more rewarding and accessible way to earn free tokens before they hit the market — all while growing your savings.

In this article, we’ll explain what Bybit Megadrop is, how it works, the benefits of joining, how to participate and whether it’s the right fit for your crypto strategy.

 is a token launch platform that lets users earn free 

 by subscribing to Fixed-Term Bybit Savings plans and completing simple tasks.

This new platform integrates Bybit Earn with early-stage 

 projects, giving users exclusive access to rewards before tokens go live on the Bybit Spot market. Think of it as a smarter, more educational and risk-free way to “airdrop farm” — but with real structure and substance.

Bybit Megadrop combines savings, learning and rewards into a unified experience. Here's how the flow works.

1. Subscribe to a Fixed-Term Bybit Savings plan

To participate, users must first subscribe to a Fixed-Term Bybit Savings plan using eligible tokens specified on the event page. These tokens could include MNT, USDT, USDC or BBSOL. This isn't just a gateway to Megadrop — it's also a way to grow your holdings. While your funds are locked for a fixed period, you earn interest through Bybit Earn.

This subscription acts as your entry ticket to Megadrop.

Once you’ve subscribed, you’re entitled to a portion of the airdrop rewards from the featured token’s project. These airdrops are typically distributed before the token is publicly listed on Bybit, giving you early exposure and the potential for upside if the token gains traction post-listing.

The amount of airdrop you receive depends upon your subscription amount, the total amount subscribed by all participants and whether you complete additional side tasks.

Please note that you will need to claim your airdrop rewards manually once the event ends.

3. Complete side tasks for bonus airdrops

To boost your airdrop share, you can complete optional side tasks. These tasks are simple, and are meant to educate users about the project and keep them engaged on the Bybit platform. Examples include:

Completing more tasks will grant you more points, which essentially results in a larger share of the token airdrop pool.

Bybit Megadrop isn’t just another airdrop campaign — it’s a win-win experience for users looking to maximize value with minimal risk.

The best thing about Bybit Megadrop is that when you subscribe to a Fixed-Term Bybit Savings plan, you don’t just earn the plan's regular APR — you also get free airdrop tokens. It's passive income layered with passive rewards.

Taking part in Bybit Megadrop will enable you to obtain tokens before they hit the Spot market, which could offer potential upside if the token rallies post-listing.

The barrier to entry is low, and there’s no need to buy or stake new tokens. You simply use what you already have in savings, and get rewarded on top of your fixed return — with no strings attached.

Looking to upsize your earnings? Simply complete more side tasks to earn more points. This way, you’ll be able to increase your chance of getting more tokens airdropped to your account.

Now that you have a better understanding of what Bybit Megadrop is, let’s explore how you can get started. If you don’t already have a Bybit account, you’ll need to create one. You can also check out our 

: Log in to your Bybit account and hover your cursor over the 

Select the event you would like to participate in. You will then need to subscribe to a Fixed-Term Savings plan on Bybit Earn to accumulate points. The eligible plans will be listed under the corresponding project on the Megadrop page. 

You may also complete tasks with point multipliers to earn points faster.

Once the event ends, the airdrop you receive will be based on your share of points earned in each pool.

Bybit Megadrop is designed for all types of crypto users, from beginners to veterans, and offers a compelling, low-risk way to access new token launches.

If you're someone who’s already using Bybit Earn, then Bybit Megadrop is a natural next step. It enhances the value of your fixed-term savings by layering on free token airdrops from promising web3 projects. You get to earn both APR and tokens, without having to take on additional investment risk.

Even if you’re new to Bybit, Megadrop makes participating in token launches easier and more rewarding. There’s no need to buy new or volatile assets — just deposit what you already have into a Fixed-Term Savings plan. That’s it — and you’re now eligible for airdrops.

For users who enjoy completing tasks or learning about new projects, the optional side missions are a fun way to earn additional tokens while becoming more familiar with the web3 ecosystem. If you're a retail user looking to stretch your capital, these tasks give you a chance to unlock a much larger share of rewards.

In short, if you're looking for a safe, flexible and engaging way to access new tokens early (without spending more or risking your funds), then you’ll absolutely want to consider joining Bybit Megadrop.

Bybit Megadrop combines the best of both worlds: steady earnings from savings and exciting token rewards from new projects. It’s a win for long-term holders, risk-averse users and web3 explorers alike.

Ready to try it? Subscribe, complete a few tasks and claim your share of the next big token — before anyone else!

Beginner

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Bybit Megadrop: A smarter way to earn airdrops from new tokens

Tezos’ Rio upgrade enhances staking flexibility, speeds up operations 3x, and allocates 10% rewards to boost L2 adoption via the Data Availability Layer (DAL). 

The S&P 500 futures rose after news of US-China trade talks, rebounding from Tuesday’s 0.77% decline as investors await the Fed’s rate decision and Powell’s guidance. Gold climbed above $3,400, buoyed by a weaker US dollar and risk-off sentiment, and is technically bullish with momentum targeting a retest of the $3,500 record high ahead of the Fed’s policy decision. The Coindesk Indices, which tracks the broader crypto market, rose 1.64%, with Bitcoin up 0.69% and Ether down 1.87%, in the past 24 hours. Trade these markets and more with up to 500x leverage on Bybit MT5 using this 

Today's top performer is KAITO, which surged 39.2% after Kaito AI announced $71M in distributed rewards and unveiled upcoming products.

Kaito (KAITO), founded in 2022, is a $1,099/month AI-powered crypto search engine that aggregates data from web3 sources like Twitter, Discord, and forums, using advanced AI to deliver context-rich, sentiment-filtered insights. Kaito AI has 

 over $71M in rewards to users within 5 months of launching Yaps, excluding the upcoming $KAITO airdrop, with more products like Kaito Earn, Connect v2, and Capital Launchpad on the way.

Check out the latest prices, charts, and data of 

 upgrade enhances staking flexibility, speeds up operations 3x, and allocates 10% rewards to boost L2 adoption via the Data Availability Layer (DAL). It reduces staking cycle times from 3 days to 1, tightens baker inactivity rules for better network resili`ence, and strengthens Tezos’ position for L2 scalability and user experience improvements.

Yesterday, BTC spot ETFs saw total outflows of $122.4M, with $89.9M from GBTC and $32.5M from non-GBTC funds.

, a decentralized bandwidth marketplace, launched its node for users to earn points and qualify for a future airdrop by sharing unused internet. Users can run a free node, earn 1 point every 10 minutes, and boost earnings via quests and referral codes.

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Tezos Rio upgrade boosts staking speed and L2 incentives with improved network resilience

In this article, we’ll look into Bybit Pay, how it works and provide you with a step-by-step guide to sending and receiving payments on Bybit Pay.

 is a next-generation payment solution that enables users to send and receive crypto or fiat with just a few taps via QR code or internal transfer. Whether you're settling bills, splitting payments with friends or running a global business, Bybit Pay simplifies cross-border transactions within a secure and intuitive environment.

In this article, we’ll walk you through Bybit Pay, show you how it works and provide you with a step-by-step guide to sending and receiving payments on Bybit Pay.

 is a powerful payment service designed to connect your crypto wallet to real-world financial needs. Whether you're sending money to friends or making payments to merchants, Bybit Pay allows seamless transactions conducted in both crypto and fiat — all from within the Bybit platform.

Its mission is to bridge the gap between digital assets and traditional finance by enabling users to spend their crypto effortlessly, just like they do with cash. With support for currencies like BTC, ETH and USDT (and even fiat such as BRL), Bybit Pay turns your crypto into a practical tool for everyday payments.

Bybit Pay makes it easier than ever to use your crypto. Whether you're paying online, transferring funds to a friend or scanning a QR code in-store, Bybit Pay supports seamless payments in both crypto and fiat funds.

Bybit Pay simplifies spending both locally and globally.

Bybit Pay operates through two main methods: QR code payments and internal transfers. Users can scan a QR code to pay merchants or friends, or send funds directly using a phone number, email or Bybit UID. It supports both crypto and fiat, with seamless access via the Bybit app or website.

: While the Bybit Card functions like a debit card for in-store purchases, Bybit Pay enables direct wallet-to-wallet transfers and merchant payments, without any need for physical hardware. It’s faster, flexible and perfect for global digital transactions.

How to send crypto and fiat with Bybit Pay

Bybit Pay makes it easy to send crypto or fiat to other users or merchants. You can pay by scanning a QR code, or via internal transfer using a phone number, email or UID.

2. Choose your payment method, and enter the recipient’s email, phone number or Bybit UID.

Enter the amount you wish to send. Tap on the 

 to convert from fiat to crypto, if needed. Add a note (optional), avoiding special characters.

5. Review the details, and confirm your payment after completing two-factor authentication (2FA).

Once your funds are sent, your payment history is viewable at the bottom of the Bybit Pay screen or by tapping on the 

Bybit Pay makes sending crypto as easy as sending a message.

How to receive crypto and fiat on Bybit Pay

Receiving payments on Bybit Pay is simple and flexible. Users can receive crypto or fiat via either internal transfer or QR code, depending upon the sender’s preference.

The sender can use any of these details to transfer funds directly from their Bybit Pay interface.

Bybit Pay makes receiving crypto fast, flexible and borderless. The following is a step-by-step guide for requesting a payment using a personalized QR code — right from the Bybit app.

. This opens your personalized payment interface.

 to enter a fiat amount, and the amount will automatically convert to crypto.

: Your QR code updates in real time in order to reflect the specified details. Simply show it on-screen or use the 

: After the sender has completed the transfer, go to 

 to confirm receipt and track incoming funds.

Bybit Pay bridges crypto and traditional finance, offering seamless, secure and instant payments — all from one place. Whether you're sending or receiving crypto, or spending it globally, it’s never been easier to do. 

 today to experience secure, borderless crypto and fiat payments — right from your app or browser.

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How to send and receive payment using Bybit Pay

Trading

Heikin-Ashi shares some characteristics with standard candlestick charts. Still, it's different. But how does it work & is it beneficial?

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The Heikin-Ashi chart is a technique used for seeing the price action with more clarity and less 

 Mainly because its calculation comes from the average pace of prices. Therefore, providing the opportunity to spot market trends clearly and eventually better predict the future prices.

The Heikin-Ashi is reliable in the sense where it allows the traders to better translate the trends on candlestick charts. And help you to find good entry points through the displays of potential reversals or breakout. When applying the Heikin-Ashi in crypto trading, it helps users to critically analyze the intense market volatility into valuable information. That’s also because it helps define and highlight the 

 with objectivity and provides a solid base to establish an investment commitment. 

In fact, if the Heikin-Ashi patterns (such as wedges, triangles, and doji) are used in conjunction with the knowledge of the state of a trend, the results are quite impressive.

Here are the main concepts that will help you understand the Heikin-Ashi candles. Perhaps, also some useful trading strategies using the Heikin-Ashi to help you make your first pot of gold.

What Is the Heikin-Ashi Chart in Technical Analysis?

Yes, Heikin-Ashi sounds like Japanese. In fact, it is and it’s one of the oldest techniques developed in the 1700s to represent and visualize the market price data. Whereas the Heikin-Ashi chart is a form of a graph that displays derivations of high, low, open, and closing prices of a cryptocurrency for a specific time frame used for 

The main difference that differs Heikin-Ashi from the rest is it is used in how candlesticks are calculated and plotted on a chart. While the Heikin-Ashi calculation of the OHLC prices will be detailed throughout this guide.

Besides the Heikin-Ashi chart, crypto traders’ most popular chart types include the 

line chart, bar chart, and the candlestick chart

While Heikin-Ashi is excellent to spot trends, Heikin-Ashi must still be used in conjunction with other elements to unlock its potential. These elements include the price action (Heikin-Ashi Patterns) and each of the candles’ behavior within the overall context. 

It turns out that Heikin-Ashi candles by themselves don’t offer an edge. Therefore, they must be analyzed in the context of the general market trend.

Nevertheless, here are some aspects to give you an idea to fully comprehend the concept.

First of all, you need to know a Heikin-Ashi candle has a body and an upper with or without a lower shadow (wick).

 with no lower wick represents a strong uptrend. However, suppose a lower wick starts to present. In that case, the upward momentum is likely to decrease. And it is possible to signal a price reversal or at least a correction in the price of any crypto assets.

On the other hand, a Heikin-Ashi candle with a 

 with no upper wick represents a strong downtrend. Notwithstanding, just as in the previous scenario, if an upper wick shows up, then it is likely that the downward momentum is decreasing. Subsequently, a corrective movement or reversal could present shortly. 

If that happens, it represents a downtrend, and a group of green candles represents an uptrend. See the example below on the 30-minute time frame for Bitcoin against the US dollar, where both scenarios are presented.

The size of the Heikin-Ashi wick can signal possible shifts in momentum. As a general rule, small Heikin-Ashi wicks followed by wide-ranging wicks signal that the buying (selling) pressure starts to build up. 

In this case, as a crypto trader, you should look for a potential trend reversal. In the example below, we can see how the size of the lower wicks started to change. Notice how the Heikin-Ashi 

 has a significantly larger wick than the previous Heikin-Ashi candle wicks. That’ll alert you of a possible reversal coming later.

Before learning how to use Heikin-Ashi, as we’ll show a step-by-step guide, you must first understand the patterns. Ideally, combining trends with patterns presented by the price action can put the trader’s probabilities in favor. Thus, some of the most reliable “patterns” are shown below.

Before you get confused about what is a 

, here’s a guide to deciphering the mystery. 

Generally, a Doji formation is when the price closes at the same (or relatively close) as the “Open Price”. The 

 mainly represents a lack of follow-through in the direction of the trend. So when this formation forms, it is likely that a reversal from the previous movement could come.

 to only trade this reversal pattern in conjunction with the overall market trend. Below is an example of the BTCUSD 30-minute time frame where the Doji is identified.

 represent a pause within the overall trend and could evolve into a continuation or a reversal. Of course, the long or short entry depends entirely on where the pattern is formed within the overall trend.

The triangle usually converges towards a middle point in its structure. While the break out defines where the momentum is likely to keep going.

In the example above, a triangle formation is presented on the daily chart of BTCUSD; see how after the price broke the upper limit (black arrow), it continued its uptrend defined by consecutive green Heikin-Ashi candles.

Other common price formations are the wedges, which are classified as rising and falling wedges. The first one has a bearish connotation because it represents the lack of follow-through to the upside, so a corrective or reversal movement could likely come soon—for example, 

, and it has more chances of being successful if the underlying trend is robust to the upside. See the example below:

How Do Heikin-Ashi Candles Different From Regular Candlesticks?

At first glance, the Heikin-Ashi candles and the regular candles are indeed similar. However, on a closer examination, the Heikin-Ashi chart presents a smooth price action where trends tend to be more consistent than the regular candlestick charts. That shows a significant advantage of Heikin-Ashi vs. a standard candle.

In the example below, a Bitcoin chart against the US dollar (BTCUSD) in a 10-minute time frame shows how on the Heikin-Ashi chart, the price presents blocks of consecutive red candles. Meanwhile, the traditional chart shows more alternation on its candles, sometimes red, sometimes green.

Practically, this smooth action on the Heikin-Ashi Candles allows the traders to read in the market better. That’s because when any given asset is trending, the action is presented with blocks of green or red candles, for an uptrend and a downtrend, respectively. To simply put it in conclusion, it makes your life easier to identify when a market is trending or not.

Above all, with this information and some price action patterns (Heikin Patterns), the investor can build a trading plan to enter the market.

Heikin-Ashi candles should be used with trend-following strategies. Ideally, crypto traders should use the candles in trending markets. When a cryptocurrency moves in a well-established trend, the candles will show all chart patterns and trends more clearly.

The Heikin-Ashi candles’ values with the

prices are calculated based on the average price. In fact, the name Heikin-Ashi in Japanese means Average Pace. So in the markets, this kind of charting represents the prices’ average pace.

The Heikin-Ashi calculation of the prices is based on the following formulas:

By comparison, the standard candlestick chart has a much more straightforward calculation. The open, high, low, and close values are all taken as the cryptocurrency price changes over time. Another difference in the Heikin-Ashi vs. candles calculation is those past candlesticks have no material impact on the formation of current candlesticks.

How to Use Heikin-Ashi In Crypto Trading?

Essentially, it is vital to choose a market with enough volatility and liquidity so the trades can be placed. Of course, this works perfectly on the Forex market.

As the traditional market gets more matured, the room for profitability gets limited. Hence, many traders are turning their heads to cryptocurrencies. Today, the 

 is one of the most exciting markets. Despite the volatility, liquidity, and several brokers offering attractive investment vehicles to participate in this market, there are plenty of opportunities to profit from this market.

So, if you want to filter out some good trading opportunities, here’s how: 

It is important to identify the momentum in the market to place trades in favor of that momentum. In other words, apply a trend following approach.

Here the multiple time frame analysis plays a vital role because it will help us identify that momentum. In the next chart of BTCUSD on the 12-hour chart, we can see the break out of a triangle pattern with a green candlestick. Additionally, we can see two areas that can act as resistance levels (Blue lines). 

Check out this practical step-by-step guide on how to start trading with Heikin-Ashi strategies:

Example of Heikin-Ashi Chart Analysis  

First, identify the momentum on the higher time frame, for this example, we can take as the reference the previous image, where they break out of the triangle in the 

 in the BTCUSD gives us clues about the direction of the momentum/ trend (big fat green candle).

After the momentum has been identified, the idea is to look for a continuation of the 12-hour green Heikin-Ashi candle, so we zoom into the 

 to look for follow-through. Those continuations can be framed under any continuation pattern, which could be a wedge or a triangle.

For this specific example, we have two possible entries after the break out of the triangles, the entries are the black dots, and the red lines are the stop-loss order where we anchor our risk.

It is also essential to highlight the two “resistance” levels. Bear in mind that if they don’t hold as resistance, they could fuel our long position because those are the pivot points where the short sellers are likely to have their stop-loss orders.

One option for the trailing stop is to trail based on the momentum of the higher time frame. In this case, when the candle closes below the previous one, this is the exit point (green dot).

The Pros and Cons to Trade With Heikin-Ashi Candles

Everything comes with setbacks. Before you decided to try out this candle, here’s what you must know!

While things may be in your favor, but what if we tell you that the limitations are quite significant as well?

The truth is, sometimes, with the “classic charts” of candles or bars, some reversals can be spotted before any signal is given on the Heikin-Ashi candles. This happens because the latter is created based on average prices, so in a certain way has a lagging factor in its structure. However, this is a minor disadvantage because you can perfectly play continuations and take advantage of the current trend.

So, what can you do to overcome the limitations?

One of the main mistakes many novice traders tend to make when using Heikin-Ashi candles is the lack of multiple time frame analysis. That is because traders focus only on one time frame that could be in the middle of a sideways movement. 

Think about it, if you’re the trader that does that. It means when you try to play with the trend-following approaches, it’ll significantly decrease your chances of profitability.

Therefore, the best way is to look at higher time frames where momentum is present (big fat candles) and then go to a lower time frame to play continuation in the direction of that momentum. Usually, this momentum plays on the higher time frames can be found using the Heikin-Ashi strategy. For example, look at the continuation of a triangle break daily, but the timing of that continuation could be taken on the hourly chart.

What Is a Heikin-Ashi Chart and How to Trade with It

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