Hello brothers, recently many of you have reached out to me, saying that Zhao Ge, you have a good grasp of the market, but many professional terms are hard to understand or are misunderstood, leading to missed opportunities or wrong trades. Today, I will simplify things and explain them to you.
Hello brothers, recently many brothers have come to me and said that Brother Zhao, you have a very accurate view of the market, but they cannot understand many professional terms, or even misunderstand them, which leads to missing out on the market or making mistakes. Today I will sort out and explain it to you brothers in a simple way.
What is a resistance level?
When a wave of market rises to a certain position, there will be a lot of selling orders above it, which will cause the market to be unable to rise and form a pressure, referred to as the pressure level. The pressure level is also like a level. There are the first pressure level, the second pressure level, and the third pressure level. Breaking through the first pressure level indicates strength, and the market will continue to rise. The higher it hits the second and third pressure levels, the weaker the strength will be, just like people always need to rest when running. The market will also fall back. These pressure levels are also the positions where we sell long orders or buy short orders. So brothers can combine the pressure levels given by the market I issued to place your long orders or short orders. You don’t know where to short? You don’t know where to sell long orders. Just look at the pressure given by my daily analysis.
Example: If Bitcoin stabilizes at 68800 today, it will have a four-hour rebound. The resistance levels above the rebound are: 69500 and 69900. These two levels are our selling points for long positions and buying points for short positions. If we break through these two prices, we can exit manually and wait for the next resistance level. Remember not to hold on stubbornly; a breakthrough indicates strong bullish sentiment, and holding on is futile.
What is a support level?
When a market declines to a certain level, there will be a lot of buying pressure, creating a support point. This is known as a support level, which has first, second, and third support levels, similar to checkpoints. At each support level, there will usually be a rebound. If it breaks through, it indicates strength, and the market will continue to decline towards the second and third support levels. The further it falls, the weaker the force will become. At this point, we can try to take a long position at the support level for a rebound. These support levels can also serve as points to sell short or buy long. So you can combine the support levels I provide with your short or long positions. If you don’t know where to go long or short, just look at the support levels I analyze every day.
Example: If the altcoin doesn’t stabilize at 2465, it will continue to decline, testing the support levels below: 2410 and 2383. These two levels are also our selling points for shorts and buying points for longs. If it breaks, we will exit manually and wait at the next support level. Contracts are inherently about taking small risks for large rewards. There is no absolute success; as long as we make a mistake, we should exit. Avoid stubbornly holding on.
To summarize: For intraday trades, if there aren’t any major news events, you can wait for long positions at the first support level or short positions at the first resistance level. As long as there is a slight retracement, profitability is generally achievable. For a more conservative approach, you can wait for long or short positions at the second and third support and resistance levels.
After I say this, don’t you all understand a lot? In fact, many teachers are just giving you orders based on resistance levels for shorts and support levels for longs. Why pay for tuition? They often charge hundreds for oil, making you a mere pawn. I update you every morning and evening; isn't that great? If you listen, why become a pawn?
Position Management
Don't just gamble with all your capital; many people actually understand this principle but get carried away, wanting to make quick recoveries. It's hard to control human nature. I can only say, regardless of how much leverage you use, keep your position size within 5%. If you do, you will have a chance to recover. If you don’t control it, you won’t even have a chance to recover. Don’t just look at those so-called oil gods; it’s all nonsense. What’s the point if you make money today and lose it tomorrow? They are all gamblers.
If there is anything else you don't understand, feel free to leave me a message below. I will share everything I know without reservation. The market is vast, let's play together. We are here to earn money from the market, not to induce you to make losses. If you like it, please give a thumbs up 👍 and follow me.
If you need Binance permanent fee rebates, you can use my invitation code to register: Exclusive invitation code: KZFPFHOG.