How to integrate technical analysis tools to form a trading system
The first step in establishing a system: determine your trading style, that is, determine which market segment you want to be in, whether you are a trend trader or a oscillating trader.
Only by determining the above two questions can you find signs in the market: change points, basis for direction judgment (moving average, trend line, K-line chart, indicators), etc., and then find the market environment.
Second, determine the entry method: left side, right side; front position entry, position entry, break position entry, so as to find trading conditions
Third, determine the position type (band, trend tracking), transaction nature (short-term, medium-term, long-term)
These three questions are to let you determine who you are, what kind of market and style of trading you want to do, and find theories, trading methods and specific tools to implement with this idea, and conduct real-time trading. If you can't determine your trading type, you can make an assumption first, set a style for yourself, go to the market to practice and test, and change one if it doesn't work, until you find the most suitable trading theory and trading tools to achieve your goals, so as to confirm who you are and determine your trading style.
When determining your trading style, you need to think about three questions:
1. Why do you do this market? What are the deep theoretical support and logical fulcrums?
2. Entry basis and benefits
3. Exit reason
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