Grasp the trend direction and entry timing, it is difficult for you not to make money! #币圈
"Telescope" and "Microscope": How to grasp the trend and timing with large and small cycles
I. Core principles: large cycles steer the ship, small cycles paddle
1. Large cycle: strategic lighthouse
Large cycles, such as daily and weekly lines, are the strategic framework for trading. It can clearly tell investors:
① Trend direction: determine whether the market or individual currency is in an upward channel, a downward channel or a consolidation stage, and solve the problem of "can it be done". For example, the weekly level shows an upward trend, which means that the overall upward trend makes it more reasonable to go long.
② Key positions: prompt important support and resistance levels and other key points, that is, "where is important". These positions have a significant impact on price trends and are an important reference for trading decisions.
2. Small cycle: tactical blade
Small cycles, such as 4 hours and 15 minutes, are tactical tools for trading. It focuses on:
① Entry timing: accurately capture the appropriate entry point and solve the problem of "when to do it". For example, after the upward trend is determined in the large cycle, the small cycle is used to find the time to enter the market when the callback ends and the price is about to rise again.
② Risk control: Help determine the stop loss position, that is, "how to stop loss". According to the fluctuation characteristics and key points of the small cycle, the stop loss is set reasonably to control the trading risk.
2. The secret of the interaction between large and small cycles
1. Suppression effect
When the small cycle runs to the high point of the large cycle, the large cycle will suppress the small cycle. At this time, the upward momentum of the small cycle is easily suppressed, and the price may be pulled back or stagnant.
2. Guidance effect
If the small cycle successfully breaks through the key position of the high point of the large cycle, the small cycle will guide the large cycle. This may indicate the acceleration or reversal of the trend, which is an important trading signal.
3. Pullback support
In the upward trend of the large cycle, when the small cycle pulls back to the support level of the low point of the large cycle, if effective support can be obtained, the upward trend will most likely continue. Investors can continue to be bullish and consider adding positions or holding.
4. Healthy rising characteristics
A healthy rising trend will show the characteristics of continuous highs and continuous lows in both large and small cycles. This reflects that the bulls continue to dominate and the trend has strong continuity.
