20 million loss makers must see the violent rolling warehouse confidential documents: learn these methods to say goodbye to liquidation: tested methods, in 4 months I spent dozens of days and made 127,000 USDT from contracts.
Step 1: First, look at the trend.
Step 2: Then find key levels
Step 3: Find entry signals. Enter, profit, close, leave—isn't it simple?
Let's explain in more detail below
Step 1: First, look at the trend. The state of a market can result in three outcomes: rising, sideways, or falling. What is a major market movement?
Look at the cycle charts of 4 hours or more, such as 4 hours, daily, weekly (my personal habit is to look at 4 hours). Go long when rising, go short when falling, do not trade when sideways.
Step 2: Find the key position. No matter whether the market is rising or falling, it will jump from bottom to top or from top to bottom like a bouncing ball. What we need to do is to enter the market at the position where it jumps.
How to find the precise step to exit at the next drop point becomes the key #Bitcoin, which is what we call the key position (main support and resistance level)
Step 3: Find signals. Generally, if you find the market trend in the big cycle, you should look for trading signals in the small cycle to enter the market.
#Ethereum Everyone is good at different tactics, so mastering one or two is enough.#CoinCircleWhat is more important is to quickly formulate a trading strategy
A complete trading strategy includes
(1) Subject matter – what is being traded;
(2) Position - how much you hold;
(3) Direction – long or short;
(4) Entry point - at what point to trade;
(5) Stop-loss – when to exit a losing trade;
(6) Take Profit – when to exit a profitable trade;
(7) Countermeasures – how to deal with emergencies;
(8) Backhand - operations after the transaction is completed.
Many traders have a pain point: they have learned a lot, but their trading is still chaotic. The reason is simple: they have learned only the "leaves" but not the "trunk".
Trading knowledge is like a tree: it needs a trunk, branches, and leaves for stable and long-lasting growth. Today, I'll show you how to systematically learn trading using the "Knowledge Tree Framework," allowing you to approach trading from a holistic perspective and improve systematically.
1. What is the trading knowledge tree?
Trunk: The underlying logic and core principles of trading (such as price behavior and probabilistic thinking)
Broad branches: main modules (such as market structure, money management, psychological discipline, strategy execution)
Details: core knowledge points under each module (trend identification, profit and loss ratio, execution, etc.)
Leaf: Cases, techniques, and experience summaries (practical details that can be quickly replaced)
Benefits of using the knowledge tree for learning:
1. Let you say goodbye to fragmented learning
2. Any new knowledge can find its place and will not be placed randomly
3. Know what to learn first and what to learn later, and have a direction for learning
2. 5 steps to build a trading knowledge tree
1. Find the trunk first
→ The first principles of trading, such as:
Markets are driven by people, and people have emotions
Trading is a game of probability
Profit and loss ratio and win rate jointly determine the profit
2. List first-level branches
→ Split into 4-6 core modules, for example:
Market structure
Fund Management
Psychology and Discipline
Strategy and Execution
3. Refine the second and third level branches
→ Continue to break down specific knowledge points under the module, but do not overfill the details yet. Establish the framework first.
4. Mark priority
→ Required / Advanced / Optional, start with the main trunk and thick branches.
5. Dynamic Iteration
→ When you learn something new, don’t just take notes, but put it in the corresponding position in the knowledge tree.
3. Trading Knowledge Tree
Trading system (trunk) │
├─ 1. Market Structure│ ├─ 1.1 Trend Identification│ ├─ 1.2 Support and Resistance│ └─ 1.3 Pattern Structure│
├─ 2. Fund Management│ ├─ 2.1 Position Control│ ├─ 2.2 Profit/Loss Ratio│ └─ 2.3 Compound Interest and Risk│
├─ 3. Psychology and Discipline│ ├─ 3.1 Cognitive Bias│ ├─ 3.2 Emotional Management│ └─ 3.3 Executive Training│
└─ 4. Strategy and Execution ├─ 4.1 Entry Conditions ├─ 4.2 Exit Strategy └─ 4.3 Replay Optimization
4. Martial Arts Analogy
Imagine you are a swordsman:
Trunk = Your Martial Arts Philosophy (Underlying Logic of Trading)
Thick branches = the martial arts of the four major schools (market structure, capital management, etc.)
Twigs = techniques of various schools (trend identification, support and resistance, etc.)
leaf= Tips for on-the-spot response (tactics and cases)
Many retail investors start by learning the techniques, but lack the inner strength, and their defense is broken after just two moves. Experts first cultivate their mind and inner strength, and the techniques are just the icing on the cake.
V. Summary and Action
Starting today, don’t blindly collect “good technical articles on trading”, but first draw a tree of your own trading knowledge.
Every time you learn something new, hang it in the corresponding position on the tree.
In this way, after a year, you will not only learn more, but also form your own trading system.
Are you tired of being overwhelmed by the "suffocating anxiety" when looking at charts for trading opportunities?
Do you long to be able to read price charts as fluently as a book, easily identifying trading opportunities based on price action without being plagued by "analysis paralysis"?
This is the essence of a price action trading strategy – making everything logical, clear and extremely simplified.
This tutorial will teach you how to "extract" price action trading opportunities from a "naked chart" without cluttering your view with all the other clutter.
We will cover this in depth in a few articles (Price Action Charting Guide).
In this series of content, you will systematically learn and master the core knowledge and practical skills of price action trading, and gradually establish clear and logical chart analysis thinking.
What you will learn include:
What constitutes price action analysis? Your journey to profitability begins here
◎ Must-know candlestick patterns
◎ A super simple method to identify sideways and volatile markets
How to Identify and Trade Trends? The Secret of Price Action
Advanced price action patterns for diligent traders
◎ Price Action Trading Entry Setup Explained
◎ Ignored "unpopular chart types"
Recommended tools for price action traders
Price Action Trading Course
What is Price Action? Where the Journey to Profitability Really Begins
Price Action is one of the most popular trading methods among us retail traders and is also a style widely used by many institutional traders - but what exactly is it?
Is it as simple as “trading candlestick patterns at support/resistance levels”?
Many people understand price action like this:
“Learning price action trading means watching the charts and waiting for your favorite candlestick patterns to appear, then quickly clicking the buy or sell button to enter the market before the opportunity disappears!”
The Internet is flooded with too much misleading information, which has led many people to develop wrong and fatal ideas.
The purpose of this guide is to fill these knowledge blind spots and help you develop the correct trading mindset!
If someone asked me, “What exactly is price action trading and how do you do it?”, I would break it down into the following four core steps:
1. Chart analysis – combining market structure with other technical factors (including top-down analysis)
2. Trading signal identification - including various candlestick patterns and breakout behaviors (some specific patterns are more effective than others)
3. "Position Assessment" - Also known as "Contextual Confirmation." Are we currently in a technical validation zone or a market inefficiency zone?
4. Predictive Ability – Based on the current chart information, can you make reasonable predictions?
These four steps are the cornerstone of my trading decisions.
Before you even consider any trading action, you must analyze the charts! Don't do anything before you understand the charts!
The essence of price action is to get information from a "naked chart" and predict future price movements without loading it with a bunch of unnecessary technical indicators. Before we go into that, let's talk about the chart itself.
Compare: a polluted chart vs. a clean, bare graph. Here's an example graph I found on a forum:
At first glance, this chart might seem quite professional, and it might be fun to play with in the short term. But in the long term, it's too complex and cumbersome. As a trading workspace, it places too much of a burden on the brain to process data, and quickly becomes tiring.
I personally prefer the following style of environment:
As you can see, this is my trading chart, very clean, minimalist, and completely price-focused. I'm trading a bearish USDCAD rejection signal here, aiming to capture a mean reversion.
Why I love price action based forex trading systems
◎ No need for fancy tools, make decisions directly from charts
◎ “Trade what you see, not what you ‘imagine’”
◎ It is easy to form a logical and clear trading idea
◎ Decisions can be made without massive amounts of data
Keep your strategy simple, logical, and easy to execute
Every time your eyes fall on the chart, the first thing you do is judge the current market state - is this a "tradable environment"? If you can't even read the chart, don't bet easily!
Remember to use your most basic technical analysis skills - many beginners fail because they skip this step!
Stick around for the rest of this tutorial as we break down every aspect of my trading strategies so you can immediately take them back to your own charts and start trading them…
Checkpoint: Price action trading strategies are more than just jumping into a trade based on a candlestick pattern or relying on isolated technical signals. Before you can make clear, confident trading decisions that won't keep you awake at night, you first need a clean charting environment and solid technical analysis skills.
Candlestick chart patterns you must understand before predicting price trends
Candlestick patterns are the most widely known part of price action trading.
Candlestick charting was first introduced to the Western world by Steve Nison in his classic book, Japanese Candlestick Charting Techniques.
Another technical analysis pioneer, Martin Pring, introduced the “Pin Bar” in his famous book (Technical Analysis Explained), which remains a popular topic among price action traders.
Next, I will show you some key candlestick patterns and the concepts behind them to help you quickly get started with price action trading systems.
Before continuing, you must be able to read basic candlestick charts. If you are not familiar with this, please check out the Traders Say article on candlestick patterns.
Long Shadow Candlesticks: A Powerful Tool for Predicting Future Trends
When a candlestick (K line) has a long upper and lower shadow at one end of its body, it means that the market has made a "rejection reaction" to the price.
This "rejection" can serve as an early warning sign of an impending reversal.
This type of candlestick with long shadows often serves as a template for the following patterns:
Pin Bar, Hammer, Shooting Star and my favorite is the Rejection Candle. Most of my trades are based on this category.
Long wicks on the candlesticks mean that the market may reverse from its current direction, either up or down, depending on which side the “rejection” comes from.
In short, it is a price action reversal signal that allows traders to predict future price movements.
This is why “reversal/rejection signals” are so popular among traders – they buy or sell decisively when they spot these long-shadow candlesticks appearing right at the key areas of interest in technical analysis.
Let’s look at some examples:
Case 1: Long-tail Bearish Rejection Signal
The above image shows a candle with a long upper shadow.
This means the market may continue to decline following this bearish rejection signal.
We can see that the market continued its downward trend, forming a profitable trade.
Case 2: Bullish rejection signal from consecutive lower shadows
After two consecutive candlesticks have long lower shadows, what do you think the market will do next?
Yes, the market did launch a beautiful upward trend, which perfectly echoed the rejection signal of the lower shadow.
However, can we enter the market blindly for every "long shadow line" signal?
Consider this clear example…
So based on what we've seen so far,
This long evil candlestick very clearly depicts the direction of the price.
With an upper shadow like this, the market will fall, right?
The above image shows a candlestick with a very large upper shadow. It looks like the market is going to fall, right?
But the reality? The market didn’t follow the script at all!
What happened? This is the forex market; nothing is guaranteed. This is why risk management plays a crucial role in your trading education. Good risk management can prevent your account from suffering significant losses when things don't go as planned.
The reason why I deliberately inserted a "failure case" here is to prevent you from thinking that price action trading is all a "dream world", but to remind you that there are uncontrollable factors in actual trading.
Summarize
A long-shadow candlestick is a very recognizable price action signal that often signals an impending market reversal. But remember, it shouldn't be the sole basis for your trading decisions!
Use these long shadow signals in conjunction with other high-value technical levels on the chart (such as support and resistance, and trend structures) to integrate this information into a logical, valuable trading idea.
This is the true power of price action trading
Don't be easily cheated out of low-priced chips, be firm in your beliefs, and prevent the dealer from knocking the market down.
It is always a taboo to chase rising prices and sell falling prices, and to enter and exit the market with full positions. The general trend is favorable, and building positions in batches when the market falls has lower risks, lower costs, and greater profits than chasing rising prices.
Reasonably distribute profits and maximize the release of funds instead of constantly increasing deposits.
When the price rises sharply, sell the money; when the price falls sharply, hold the money. At any time, you must have a positive mentality, do not speculate, do not be impetuous, do not be greedy, do not be afraid, and do not fight an unprepared battle.
In the front, ambushing or private placement of low-priced coins is to rely on experience and the dealer to bet on the future of the coin. Later, the secondary market game is a process of relying on technology and information to follow the dealer. Don't put the cart before the horse and end up in a mess.
When building positions and shipping goods, they must be layered and segmented, with prices gradually varying to effectively control the ratio of risk and profit.
You need to be familiar with the linkage effect, and when trading coins, you need to look at the market and pay attention to the movements of other coins. Each coin does not exist in isolation in the market. They may seem unrelated, but they are actually intricately connected. To understand the linkage effect, you need to understand the coins. There are many tools available now that can be used to view coin information and obtain consultation.
Make sure your portfolio is balanced, with both hot and value coins properly allocated. Pay attention to the balance between resilience and profit taking. Being too conservative can lead to missed opportunities, while being too aggressive can lead to high risks. The biggest advantage of value coins is their stability, while the biggest drawback of hot coins is their extreme volatility. They can soar in one move or plummet in another.
Having coins on the market, money in your account, and cash in your pocket is the safest and most secure standard configuration. You cannot go all in, as you will lose if you do. The grasp of risk control and the reasonable allocation of funds are the key to determining your mentality and success or failure. Investing spare money is the foundation.
Master the basic operations, learn to draw inferences from one example, master the basic ideas of trading, observation is the prerequisite, remember each high and low point as reference data, learn to record, learn to summarize materials by yourself, develop a reading habit, and cultivate the ability to screen and filter information.
1. Investment cannot rely entirely on luck
If you have more profitable orders than losing orders, and the total value of your account is growing, then congratulations, your investment is successful, and you have found the tricks and methods of investing in the cryptocurrency circle. However, if 9 out of 10 transactions are profitable, but one losing order offsets all your previous profits and the total value of your account is in a negative growth state, then you have to pay attention, you are not so lucky every time, don’t easily increase your position, if the direction is wrong, lose it in time, and start again with the next transaction.
2. Believe in yourself
Many times, the orders you originally made were correct and could help you make a profit, but because of your lack of confidence or interference from others, you changed the correct orders into wrong orders. You are very unwilling to accept such a failure, and you will think why didn’t I persist a little longer? As a good investor, you must have firm beliefs and will, and you must know that the truth is often in the hands of a few people.
3. Trading skills
There are trading skills required for cryptocurrency investment, and the market trends are regular. When placing orders, we should make judgments based on the technical aspects and follow the trend instead of going against it.
4. Do a good job of risk control
Investing in the cryptocurrency market is a high-risk, high-return investment. We should do a good job of risk control when making each order, place orders with a light position, and add to the position in line with the trend. We must not blindly place heavy positions. At the same time, we must set stop-loss and take-profit when making each transaction, and do not be greedy.
5. Be cautious when entering the market
Many investors often can't help but want to make a trade when they are making a trade, but they rush into the market without finding the right price. This often results in the failure of the trade or the awkward price. Even if they make a profit, they don't get much. Good market conditions are often waited for. Look for a wave of market conditions and enter the market at the right time. Don't be impatient and make trades at random.
6. Exit decisively
One of the most common mistakes investors make is hesitating to exit the market. This can happen in two ways. One is being greedy after making money, believing there's still room for profit. If the market reverses, this can easily turn a profitable trade into a losing one. Therefore, knowing when to stop while you're ahead and avoiding greed is an investment tactic. Another mistake is being reluctant to cut losses after losing money, believing there's still room for recovery. This is even more serious. Holding on to a trade can lead to a margin call, leaving little capital and making it difficult to recover. So, in either case, exiting the market decisively requires no hesitation.
7. Keep a calm mind
Investing is a long-term process and cannot be determined by one or two orders. So don’t be too proud when you make a profit today, and don’t be discouraged when you fail. The market is changing rapidly, and no one can guarantee that there will be no misjudgment. If you get discouraged, you will definitely not be able to do well in the subsequent orders. When facing failure, you need to keep a calm mind, sum up the lessons, adjust your state and prepare for the next transaction.
8. Pay attention to the news
There are a lot of news in the market, and sometimes a major news can change the original technical form and trend, so you must pay more attention to the news when making orders. Combining the news and technical aspects will make you more comfortable.
9. Sufficient funds
If you are investing with borrowed money, then I suggest you don't do it, because you are no different from a gambler and will only lose everything in the end. Investing is done with spare funds, so that you can be more stable. At the same time, sufficient funds can be used to cover positions or lock orders, making your operations more flexible and better able to control risks.
The market is constantly changing, but the rules remain the same. Your only goal is to survive this turbulent time. If you're feeling lost, consider saving this article as a starting point for your trading journey. It's not about getting rich quick, but about staying at the top of your game!
