What is your basis for entering trades in the cryptocurrency market?
#交易核心 First, look at larger time frames (such as daily or weekly charts) to determine what stage the market is in. If the larger time frame is in a consolidation phase, then when a 'battle' signal appears on the next smaller time frame (such as 4-hour or 1-hour), you can enter the market, but the likelihood of a 'second battle' is relatively low, and the holding period should not be too long.
Finding opportunities in smaller time frames:
After determining the larger time frame, consider time and space factors, and observe what stage the smaller time frame (such as 15 minutes or 5 minutes) is in, only taking clear signals like 'momentum has ended', 'battle', 'second battle', etc.
You must understand the market language.
1: Candlestick patterns show the path and outcome of the bull-bear battle:
Candlestick patterns not only display the specific combat paths of both bulls and bears but also reflect the battle outcomes through price action. Additionally, candlestick patterns can indicate the accumulated 'momentum' during the battle (similar to the role of moving averages, but with lower lag).
2: Trading volume is the intensity of the bull-bear battle:
Trading volume represents the intensity of the conflict between bulls and bears, which can be understood as the 'casualty count'. Different stages paired with different trading volumes convey completely different information in the market.
In the cryptocurrency market, you can understand that each trader is a general, and capital is your soldiers. The market is filled with various 'legions' fighting:
Some areas have small units of hundreds engaged in battle (short-term trends).
Other areas have millions of troops in combat (long-term trends).
Your small unit might win a battle in a short time, but suddenly, due to a shift in time and space, your small unit gets pulled into a larger battlefield, becoming part of a million-strong legion. This represents the worldview where smaller time frames fit into larger time frames.
Why is the larger time frame more certain? However, retail funds are small, and playing with larger time frames will become market fuel.
Uncertainty in smaller time frames:
In smaller time frames (like short-term movements lasting a few minutes), market fluctuations can easily be manipulated by large players. Large players' short-term actions can lead to sudden reversals, such as insider trading entering the market.
Trend power in larger time frames:
In larger time frames (like daily or weekly charts), even with large players intervening, it is difficult to change the overall trend. As the saying goes, 'The great trend of the world is vast and powerful; those who follow it will prosper, while those who resist will perish'.
Summarize in the comments section.
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