I shared the essence of it with my apprentice, and he applied it to perfection. With this method, his income increased by 300% in 3 months.
Today, I specially sorted out some useful information to share with those who are interested, please keep it well.
In addition to having solid skills, I also strictly abide by the following ten iron rules:
1. Choose altcoins in a bull market and buy BTC+ in a bear market. This is my secret!
2. Pay special attention to the coins with large volume at the bottom. This is a start signal, don’t miss it!
3. For coins in an upward trend, when they pull back to the important moving average +, it is the best time to buy. Remember to seize the opportunity!
4. Don’t trade frequently. It is enough to get the big trends right a few times a year. Greed will lead to big losses!
5. You must control your position well. Never fully invest and leave yourself room so that you can cope with market changes!
6. Don’t cover your positions for losing junk coins. It is wise to stop losses in time and don’t let yourself get deeper and deeper!
7. The news can only be used as a reference. Don’t blindly follow the trend, otherwise you will bear the consequences at your own risk!
8. Never touch coins that you are not familiar with. Focus on the track that you are familiar with, so that you can be sure of winning!
9. Don’t be swayed by market sentiment, stay calm and rational, so that you can make the right decisions!
10. If altcoins rise too much, they will definitely fall; if they fall too much, they may not necessarily rise. The choice is very important, so you must keep your eyes open!
11. When most people are optimistic, that is often when risks come. Remember this and don’t let yourself become the one taking the blame!
12. Learn to hold empty positions and wait for the market to give clear signals before entering the market. This is the only way to avoid unnecessary losses!
13. Don’t follow the hype about hot topics. Hot topics tend to come and go quickly. Don’t let yourself get trapped!
14. When trading, you must have your own trading system and strictly implement it to maintain stable returns!
15. Investing is a long-distance race. Only by maintaining a good attitude can you have the last laugh. Don’t let yourself give up halfway!
16. You may not necessarily make money from investing, and you may lose money with a high probability, so try to invest with your spare money. If you invest with spare money, you will have a good mentality and the probability of winning will increase. Remember this and don't let yourself get into trouble because of investing!
I have been speculating in cryptocurrencies for more than 10 years. I started with 50,000 yuan and now I support my family with cryptocurrencies. It can be said that I have used 80% of the methods and techniques in the market, but the following indicators are the most practical. I have caught many coins that have increased tenfold or a hundredfold! Ignore this picture and text, and you will earn at least 20% less!
If you want to make stock trading your second career to support your family, then you must study this article carefully, which will at least save you 10 years of detours!
Today, I will introduce to you how to identify the high and low points of the band, which is composed of sentences by Chinese characters. After mastering the high and low points of the band, you can understand a conversation and read a story.
The market moves up and down in waves, but at any point in time, the seemingly irregular market has its own internal rules.
Among these, the most important point is to distinguish the main trend and secondary trend of the current market, so that we can be prepared to intervene in the main trend at the end of the secondary trend.
This is also the connotation of every story.
Through today's article, I hope we can learn the following:
How to identify swing highs and lows?
What is the use of swing highs/lows in helping us determine trend strength?
How to determine the primary and secondary trends of the market?
How to determine whether the momentum of a trend is getting stronger or weaker?
How to identify swing highs and swing lows?
How to identify the high and low points of the band?
A swing high or swing low usually requires at least 5 candlesticks*, and the middle candlestick (i.e. candlestick 3) must be higher or lower than the two candlesticks before and after it. Taking the swing high as an example, ideally, the high and low points of the first two candlesticks gradually increase, and the high and low points of the last two candlesticks gradually decrease. Otherwise, it is a swing low.
1. If you are new to the industry, don’t rush to make money, and learn quickly. If you don’t even know that an exchange will collapse and run away, how to cross-chain assets, and the concept of blockchain, how can you make money?
2. Try to step into more traps, practice more, and ask less questions. There are 101 opinions among 100 people in the cryptocurrency circle. Speculators think investors are idiots, and speculators think investors are parasites. A says this project is a great innovation, B thinks it is just a concept machine, and C says they are both scammers... Who should I believe? Don't believe anyone. There are scammers everywhere in the cryptocurrency circle, who specialize in standing on the streets at various traffic outlets to provide newcomers with targeted stimulating services. And 99% of the people in the cryptocurrency circle are leeks, who should I believe?
3. Circles are very important. In my opinion, 99% of group chats are similar to those of old men in the village park, focusing on small talk and occasionally posting profit screenshots. This is actually not very meaningful. A high-quality circle can at least let you see the facts of the cryptocurrency world. What do you think?
4. Investment is your own business. How do you understand this sentence? That is, investment is ultimately up to you. Other people's analysis and thinking are only for reference. You should do more independent research to form your own investment framework. Only with a framework can you have your own ideas. Don't worry about what others say, because their level may not be as good as yours.
5. Which is better, contracts, short-term, hoarding coins, playing with money, or NFT? The best one is the one that suits you. At present, our group strategy is mainly hoarding coins. If you have enough energy, you can play with money. Some people say that contracts, short-term, and NFT, to tell you the truth, are all for you to take over.
6. How can I find a 100x coin? If you don’t even know the basic concepts and don’t understand what the cryptocurrency world is all about, and you still ask around, you will never find a 100x coin with this mentality, and you will be shot. What I want to emphasize is that it is not that easy to make money in the cryptocurrency world, and even the easy ones can’t make money. If someone wants to argue that someone bought a 100x coin and the contract is so many times, then it is likely that he is a scammer.
7. Patience is the foundation of making money. You may have to study for a long time and be cheated countless times before you know what the cryptocurrency world is like. It’s okay. Cherish every experience of being cheated. These are the lessons you should learn on the road to investment.
8. Follow the basic rules of the cryptocurrency circle. If you lose money, you must admit it. If you are cheated, you must accept it. Experts often don’t complain, but weak people like to blame others for cutting leeks and complain that the rules are unfair. If you are no longer able to make rules, stop complaining.
9. Learn and practice at the same time. Some people say, I have learned so many concepts and understand them all, but they are still very abstract. This is wrong. You should learn and practice at the same time, experience various projects. Of course, output is the best practice. You can also output content to attract friends and communicate together.
10. As long as you work hard, you can always become a big boss. I am sure many people will not agree with me. Isn't this nonsense? How many people are still leeks? Remember, it has nothing to do with you that others are leeks. What you need to focus on is improving yourself. Nothing is difficult in the world if you work hard. If you want to argue again, refer to Article 2
The last sentence is a review and summary. Don't fall in the same place a second time, then you can grow quickly.
I will use 6 parts to explain today's topic:
1. The difference between general support and pressure points and main support and pressure points
2. The role of the main support and pressure level
3. 5 tips for identifying major support and resistance levels
4. 5 mistakes in finding major support and resistance levels and how to avoid them
5. Take you to the real market and find the main support and pressure points
6. How to deal with the market reaction after the main support and resistance level: trend reversal, breakthrough and sideways fluctuation
1. The difference between general support and pressure points and main support and pressure points
I dare say that 90% of the people in the current trading market do not know how to find support and resistance levels.
Of the remaining 10%, 80% of them find the wrong support and resistance levels.
When it comes to support, ordinary people will imagine it as a floor.
When the price falls to a certain point, the opposite force begins to appear
The price's downward momentum weakens and it starts to move in the opposite direction.
Same reason
The pressure level is when the price rises to a certain position, the opposite force appears, which weakens the upward momentum of the price, or even turns around. You can imagine the pressure level as a ceiling, which prevents the market price from continuing to rise.
The above is our understanding of the support and resistance levels:
Isn’t this concept simple? If you think so, congratulations, you are one of the 80%
The two situations listed above will happen countless times on the disk every day.
If we enter the market just because the price line does not break a certain support or resistance level once or twice, we will most likely learn a painful lesson.
Because you don’t know whether this position is a truly meaningful position for the market?
It's still some randomly generated noise, so at this time we need some more advanced techniques
That is the main support and resistance level to help us filter
To avoid confusion
Next, I will explain the main support and resistance levels in this article.
Referred to as "key position" in English: Keylevel
The key position is a really sensitive place in the market. The market has expressed its position on it before, and has made a significant reaction to it. It has also been rejected by the price many times.
It may have been the market's enemy yesterday, but it has become the market's friend today.
The key position is like a magnet, there is an invisible attraction that will constantly try to approach this position
If we can accurately detect the market when it approaches this position again,
We will have a reasonable prediction for the future, that is, the price will react to some extent again.
So this is our chance to come in and make money.
2. The role of the main support and pressure points:
So what is the practical use of learning to find the exact key position? What practical help does it provide to us in trading?
We all know that there are two things that most traders do wrong, and they are also the biggest and fatal mistakes.
The first is to enter the market randomly without a plan
The second is to chase the rise and sell the fall
I will use a story to explain each of the above two points.
The first one: unplanned, random entry into the market at a certain position
Imagine if you were a sniper, you would have to make a comprehensive plan from the moment you received the mission.
For example, choosing a sniper position, understanding the target's habits and his behavior
What equipment do you need?
Your entry route
Your escape route
You need to observe the surrounding environment
The disguise you will use
And you have to wait patiently for the target to enter your range
The same is true for trading. Every successful trader
Before each transaction, there will be a comprehensive plan, rather than aimlessly and randomly entering the market.
The key position is an excellent deployment blocking point, because the market usually reacts significantly at this key position.
This is where you have the greatest chance of catching the next big trend in the market. All you have to do is make your trading plan here.
Formulate a chain of ifs:
If the price does come back here...
If the price shows a turning point Yin Yang line pattern here...
If the price forms a double top pattern here...
If this has enough profit margin from the next key position...
If the price goes there
I'm going to take profit!
If the price is wrong
If you come here
Then I'll stop loss.
When you make the above plan before each transaction
Good coordination key position
This first-class strategically located
Your chances of success are naturally greater!
The second
It's about chasing the ups and downs
I don't know if you have ever played the game of Monkey Grab Ball. The rules of Monkey Grab Ball are very simple.
One person plays the role of a monkey, and the others surround the monkey and pass the ball
At this time
The monkey will keep running around
Go grab the ball
。。。
Friends who have played this game and have been monkeys should know very well
Every time you run to the ball, it is passed to the other side, and you have to run again.
In the trading market, if you aimlessly chase the price of coins
In fact, you are playing the role of the monkey. Every time you see the price has gone up,
If you have it, you will feel that the opportunity is not to be missed and you must rush in immediately
But when you enter the market, the ball has already been passed to others, that is, after you have hit the stop loss
Then continue to walk in the opposite direction. I believe many friends have encountered this situation.
You will feel discouraged, as if you can never win this game.
The only solution to this dilemma is to let go of your excitement.
And the plan to chase the ball, combined with the sniper example just mentioned, to develop a trading plan
Instead of chasing the market, wait for the market to fall into your trap, and then strike when the opportunity arises. This way, your chances of grabbing the ball will naturally be greater.
Therefore, another meaning of the key position is that we no longer need to chase the price, but deploy your strategy, wait for the price to come back again, and look for a high-winning entry signal.
When you do this over and over again, with proper risk management and the right trading mentality
I believe that you will be more successful than 90% of people in the market.
3. 5 tips for identifying major support and resistance levels
So how can we correctly identify the key positions in the K-line chart?
Remember the following 5 conditions
1. The more contacts, the better
2. Have had a strong reaction
3. Very clear and easy to see at a glance
4. I’ve been rejected many times
5. Passing both support and resistance levels at the same time
The above 5 conditions do not need to be met in order to be called a key position.
But the more satisfaction there is, the stronger and more effective that position is.
Next, I will disassemble the above 5 points step by step:
The more contacts the better
There is a very simple way to prove whether a certain price is a key position, which is the number of times the market touches it.
In our daily life, when you find that a situation keeps happening repeatedly, you may think it is just a coincidence once or twice, but when it happens for the third or fourth time,
Do you find this suspicious? It seems like this happened for a reason.
At the same position, at different times, the price failed to exceed this position several times.
Having encountered resistance or support at this position, we will doubt one thing, that is, whether this position has any special significance for the market?
Is this position a critical position? Is it the high or low point of this year?
In summary: If a position has reacted to the price line once or twice, it may really be just a coincidence, but when this happens more and more times, the probability that it is a key position will be much greater.
There was a strong reaction
We know that history repeats itself, and if prices do not react strongly after passing a certain position, how can we have a reasonable expectation that prices will react significantly again in the same position in the future?
The market actually has memory just like humans, but we usually only remember things that are more impressive.
Everything is based on one concept, which is the reasonable expectation that when the market returns to a position where it has risen or fallen sharply,
We will have a reasonable suspicion that the price will repeat history and make a significant reaction again at the same position, and that significant reaction is our profit space.
In this position, there are actually many orders placed by investment institutions.
When the price returns to this key level again, there will be a chance to trigger their orders.
As retail investors, if we temporarily agree with institutional investors at this point, the price will quickly move in the direction you want.
Stay away from your stop loss and move towards your profit target
As the saying goes, "Follow the banker, there will be a bull market every day"
This is also one of the banker's thinking that I have learned from working in finance for many years.
Very clear and easy to see at a glance
A good key position must be clear, specific, and easy to see at a glance.
What if one day, when you open a chart, you find a position that looks like a key point, but also doesn’t seem to be?
If you see that the price has tried to encounter resistance or support there, and the price seems to have reacted, but not too much,
I advise you to give up this position immediately! Immediately! Right now!
Because even if you can barely find a reason to regard this place as a key position, in fact your confidence in this position has been affected unconsciously. Why?
Because when a trading signal actually appears, you will definitely hesitate, which will greatly affect your trading decision.
Even if you do enter the market, you will be scared as long as the price line moves slightly in the opposite direction.
Even if you have a strong WeChat account that prompted you to make this transaction, you are likely to doubt this position because of self-doubt.
And you gave up the real key position too early, causing you to leave the market early
Then you will give up your original trading plan, and the transaction will end in failure, and you will not be able to achieve the principle of consistency.
What this market lacks the most is trading opportunities. There are more than 200 currency pairs in the digital currency market for you to trade, as well as different foreign exchange, futures, and securities products.
I am never afraid of not having the opportunity to enter the market. What I am most afraid of is not following the trading plan I have made and entering the market reluctantly without confidence.
I have been rejected many times.
When we are pursuing a girl, the most painful thing is not being rejected by the object of our affection, but being rejected madly by the object of our affection.
。。。。。。
The same is true for finding key positions. We want to find the pain points of the market. We hope to see a certain position that has been repeatedly seen at different times.
Or we can create a situation where we are rejected repeatedly. Each time we repeat this reaction, we will have one more chance to enter the market.
Simply put, you will see that the K-line will be generated near this position, one or several long upper or lower leads, and the price will go in the opposite direction every time it is rejected.
This means that the price has expressed itself to the market many times, and has risen or fallen many times, but was rejected by the market and immediately pulled back by the opposite force.
This situation means that there is a strong force guarding this position.
Whenever this happens, especially if the daily price breaks through this area, we will regard it as a strong and effective key position.
Support and resistance levels
In the world of trading, there are no permanent friends or permanent enemies.
What we would like to see is that yesterday's support level becomes today's resistance level.
Or yesterday's pressure level may become today's support level. Whenever the price breaks through the past pressure level,
Many times, it will return to the same position and rebound again.
If the price is rejected at this time, it means that yesterday's pressure has turned into today's support.
This situation also means that this position has a considerable status in the underworld, and both the black and white worlds will give him face.
That is, both the bull and the bear have held on to this position. Every time we see a certain position
If we have done both support and resistance at the same time, we can judge it as a key position, and it is likely to be correct.
After explaining the conditions of the five key positions, I will now explain the five key points on application.
Mistakes that many coin friends make, and some practical tips for everyone
4. 5 mistakes in finding major support and resistance levels and how to avoid them
5 mistakes in finding the key position and how to avoid them
1. Drawing too many lines
2. Reckless entry
3. It’s an area, not a line
4. The scope is too large
5. Large cycle charts are more accurate
Too many lines
The first common mistake in finding key positions is to draw a line across all the so-called support or resistance levels seen in the chart.
The more lines you draw, it does not mean that you will have more trading opportunities, nor does it mean that you will make more money.
Because many of the lines you draw are just market noise.
According to the 5 conditions just mentioned, many of these are not qualified key positions.
If we make the chart like this, it will only dazzle us and affect our trading decisions.
Everyone should know a principle:
The basic point of looking at the chart is to keep the chart simple and clear, making sure we can clearly see the price action. What we want to see most is the price reaction.
If there are too many things covering the K-line, causing us to be distracted or hesitant, this is definitely putting the cart before the horse.
Therefore, we only need to focus on the most obvious, important, and closest major support and pressure points.
Reckless entry
The second point is to enter the market recklessly. Let's use an example from a real market. When we find a key position (as shown in the figure)
We can see that the last time the price touched this position, it reacted downwards greatly, so the price returned here again. Don't think that the price will go down again and enter the market to short immediately.
There is a high chance that you will learn a painful lesson if you do this.
We mentioned earlier that there are no eternal enemies in the world, let alone eternal friends. Yesterday's pressure level may definitely become today's support level. The key level is actually a market balance point.
Both bulls and bears will want to make a breakthrough or hold on here, so the forces of both sides usually clash at this position.
What we need to do is wait for the outcome of the market battle and observe how the price reacts to this position.
Decide whether to enter the game based on the traces left by the fight between the two sides?
Why enter the market?
When to enter the market?
When to leave?
Wait for a series of trading plans
In simple terms, the best approach is to wait for a trading signal as confirmation before you enter the market.
This signal can be a technical indicator, a chart pattern, a K-line pattern, or even a fundamental analysis.
There are thousands of different combinations that can be used as trading signals
Because of limited space
I can’t possibly say it all in this article.
So I won’t explain this in detail here today.
I will only summarize two or three trading signals in the last part of this article.
In the future, I will write more detailed articles for different entry signals.
It’s an area, not a line
Let's continue to explain the third wrong usage, that is, the real key position should be an area rather than a line
Although the market will continue to repeat itself, the process will not be 100% identical each time.
The market cycle is like the circle in the picture above. Each circle will have some differences. It is difficult to draw the same circle. It is not because I don’t draw it that way on purpose.
Rather, there are too many uncertainties in the market. Although the results are similar, there is a very small probability that the previous process can be completely replicated.
Take this as an example. The price reaches this position for the second time and a signal appears to rebound again. When it returns here for the third time,
Based on your analysis, you decide to enter the market and place your stop loss at the height of the previous retracement. However, today the price decides to go even lower, directly hitting your stop loss position.
If you draw this key position as an area, your stop loss will become here, then your transaction will be successful and bring you huge profits.
The difference between a successful and a failed trade is just a tiny area.
Drawing the key position into an area can help us avoid many failed transactions.
At the same time, the price can be driven to our profit target, which is the direction we want, and the chance of accidental exit is greatly reduced.
I believe that after reading this, friends who play contracts should be deeply touched that the overall market has not changed and is still developing in the trend they expected.
Just because of that damn needle, my account went bankrupt.
Too large a range
Sometimes we find that the key area drawn is very large
This situation is more likely to occur in large intervals.
As shown in the figure, a trading signal appears here in the K line. Normally, if a signal appears at this position, there is enough reason to enter the market and make a trade.
But because the scope of our painting is so large, we may be a little hesitant.
An area that is too large will make us feel confused. Even if there are clear signals, some unnecessary troubles will occur, making us indecisive and miss opportunities.
When this happens, we can connect as many points of the entity line as possible to reduce the area to a reasonable range, and ensure that it is connected to at least three contacts, which will make the whole event much clearer.
Large cycle charts are more accurate
Larger time period charts are more accurate. You may have heard that the larger the time period chart, the more accurate it is.
In fact, the logic is very clear. If you spend more time planning, preparing, and preparing for something, its success rate will definitely be higher than if you do it in a short time.
The number of improvisations is much higher. When we look for key positions, it is always the same. We always start from the big time chart.
Here, I share a skill I have learned from many years of experience in stock market analysis, which was once taught to me by a famous institutional trader.
From the weekly chart, to the daily chart, then to the 4-hour chart, and then to the 1-hour chart, one level down.
When analyzing each currency pair, always start with the big time chart and make a trading plan for the next week. Once you know the big trend of the market,
Your chances of being on the right side will naturally be greater.
If you are a person with little trading experience, I suggest you start with a large time chart, such as the daily or even weekly chart.
First build your confidence in trading, then slowly try smaller time charts
5. Take you to the actual market and find the main support and pressure points
Finally, I have finished talking about these 5 conditions for defining key positions and 5 application errors and secrets. You may think that what I just said is a bit subjective and it is difficult to have a clear and quantifiable condition to define it.
For example:
What is a strong reaction? How many rejections are considered many? How effective is it?
If you have this question, congratulations!
Your comprehension ability is amazing!
You have probably already started to absorb this concept and digest it.
This is why I will classify this course as advanced technical analysis.
Indeed, the key position is very subjective.
Technical analysis, including all price action, is the same chart for different people to see
The results may not be the same, so the only way is to do the backtest yourself
Practice more and observe more charts
Action is worse than thought. Next, I will take you to see a few examples and put what you just learned into practice immediately.
OK！
Before looking at the chart examples, I will first teach you how to draw a key position.
Step 1: We draw a line where most K lines touch
And this line will follow a principle: the entity is more important than the lead
Why?
Because we want to focus on the price at the end of the K-line. That is the result. The lead line means the past, not the result.
Step 2: Draw one more line above and below the previous line. The goal of these two lines is to touch the K-line as many times as possible, whether it is the body or the lead.
Step 3: Delete the middle line
This will give you a preliminary key bit area. If this area is too large
You can follow the secret I just mentioned and adjust it based on the principle of connecting to the maximum number of contacts.
Remember one principle: the entity is more important than the lead! If there is a conflict between the entity and the lead, we will choose to sacrifice the lead!
Next: Let’s start looking at some chart examples
In the first candlestick chart, guess where the key position is? How many conditions does it meet at the same time?
That’s right! It’s right here!
First, we draw a line and try to make it touch as many entities as possible.
Then draw one more line above and below it to form a rough draft.
Finally, let's make some adjustments. This area is the key position.
Do you see that this position is a bit out of bounds?
In fact, it is acceptable, because the market is usually not perfect, and there is a small probability that it will be like what is drawn in some books.
As long as the flaw is not too big, it will not affect his qualification as a key position.
This position meets three conditions
1. It has at least three contacts
No. 2: We have all seen strong price reactions in the past
3. It has been both a support and resistance level
Well, let's strike while the iron is hot and look at the second candlestick chart.
Let's try to find the key point together
How to deal with market reactions after key positions: trend reversals, breakthroughs and sideways fluctuations
1. Transactions are time-sensitive
The cryptocurrency market is changing rapidly. Even if I have told you the exact entry point, if the subsequent trend does not go as I expected,
I need to tell you to close the position immediately, from writing, to publishing, to review, and then you pick up your phone
There are too many uncertain factors that delay the timing.
No. 2: Challenging human nature is difficult
Humans are greedy, including me
Many people can make money in the process of trading, but they just think that the profit is too little.
After earning 5%, you have to wait for 10%. After earning 10%, you have to wait for 50%. After you really wait for 50%, you want to double it to 100%.
As a result, a waterfall came down and it turned directly into -30%.
Finally, seeing that things were not going well, I decided to close the position and exit with less loss. I believe this happens every day.
So, I ask you to set a stop profit, make a profit and run, it is a planned transaction, few people can do it
If you make money, you may remember my kindness. If you lose money, I will bear the title of a master of deception.
Although the truth is, in 100 transactions, I made you win 99 times and only lost this 1 time, this is human nature
No. 3: I don’t know you
My sharing is purely a hobby. I have already achieved financial freedom through the stock market. I don’t need to prove it to anyone.
I don't need to put pressure on myself by helping others make money. What does it have to do with me whether you make money or not? What does it have to do with me how much money you want to make?
No. 4: It is better to teach a man to fish than to give him a fish.
This is also the most important reason why I write and share.
Mr. Lu Xun gave up medicine to pursue literature
Claiming that studying medicine cannot save China
Because I want to improve my health
Improve your mental health first
Even now, people from all over the world continue to help Africa, donating money, materials, and people. . .
The amount of money donated is increasing year by year, but the more I donate, the poorer I become.
I believe that you in front of the screen are also smart enough, because those who can understand the cryptocurrency world and have the courage to try it must be the most outstanding elites in this society.
So I hope to teach you the techniques and the basics, and you can integrate them with your own independent thinking ability.
Form your own trading strategy and stop being at the mercy of others
all in all
What I'm going to talk about next
Its value is definitely greater than a trading strategy
Usually the price passes through the key level
There are three main results:
1. Trend reversal
2. Breakthrough
3. And sideways fluctuations
We start with the trend reversal
Generally speaking, there are three signs that will let us know that the price is beginning to turn around, making the trend have a great chance of changing.
First: The price is rejected
The most typical example is the candlestick pattern, shooting star or hammer line. The meaning of it is actually mentioned just now, that is, the price has tried to go up or down.
But it is immediately pulled back by the opposite force. It is a very classic, simple and effective turning point K-line pattern.
In addition to patterns such as shooting stars, we can also use a simpler way to help us identify, that is, the RSI indicator
Don't think that things like shooting stars and RSI indicators are useless
The accuracy of any K-line pattern, chart pattern, or technical indicator, as long as it occurs at a key position, will be greatly improved!
Let’s look at some examples:
Let's see here that within the key position, the price has tried to test upwards and tried to break through the pressure level, but the opposite force immediately appeared.
The K-line forms a shooting star pattern, and the reverse force is even stronger than the upward breakthrough force, which finally reverses the entire trend.
Let's look at an example in the opposite direction. We see that when the price enters the key position, the upward force begins to appear.
We see a long lower lead below the real body, which is the inverted hammer pattern. This long lead represents the downward center of gravity, which means that the downward force has lost control.
Until the K-line closes, it cannot continue to go down.
When the power of both parties is out of balance, the price will naturally move in the direction of the party that has control.
Of course, the RSI indicator can also be used as an entry signal. Let’s see what the actual situation is.
When the price reaches a key level, and the RSI indicator rises above 70, it means that the market is overbought, which is a sell signal.
When the RSI lights up a signal at a key position, it means that the current trend is about to change.
Or at least it will pull back downward, which will naturally have a much higher success rate than a signal generated at a random and unimportant position.
So you have to remember that all technical indicators and
The K-line pattern must not be used alone. Many friends have lost a lot of money because of this.
All trading signals must find a consensus point, which can be different forms, technical indicators with chart forms, chart forms with K-line forms, support and pressure levels, trend lines or fundamental analysis, so that your trading success rate will be higher
Financial trading is a game of probability. Whether you are trading options, US stocks, or cryptocurrencies, you must understand this to have a chance to survive. This is definitely the watershed between successful and unsuccessful traders.
After talking about the first one, let’s talk about the next two
The next two concepts are more complicated because they are not immediately apparent. Instead, they are traded by observing price behavior. The kinetic energy of the candlestick chart itself can provide some signs that indicate the likelihood of a trend reversal.
The first one is to observe how the price approaches the K-line
Let's look at this example. We can see that when the K-line approaches the pressure level, one is smaller than the other.
It represents the weakening of the upward force, and also implies the
There is a consensus among buyers:
OK! Listen up, brothers! We have come to the point where we are almost there. It is not worth it for us to continue to rush up here. Just pretend to go up! When the market shows a reversal signal, the price will immediately start to fall.
Personal experience summary:
1. Plan your funds rationally for cryptocurrency trading so that you have food in your hands and will not panic!
2. Never place orders based on emotions. Do not be overwhelmed by profits and place orders blindly.
3. Develop a good trading plan and follow the market
Use large positions to follow the trend, and small positions to follow the swings. Control the ratio yourself. If you trade against the market, you should stop loss with a light position. If you trade with the trend, you should hold on. There is no unprofitable cryptocurrency trading, only unprofitable operations. Cryptocurrency trading is a test of the correct mentality! I wish all cryptocurrency trading friends can find their own trading methods and make steady profits.$ARDR $RVN #美国加征关税 #X平台封号
