Cycle and sequence of currency market trading system
1. Cycle is the time cycle. It is roughly divided into 1 minute, 5 minutes, 15 minutes, 30 minutes, 60 minutes, 4 hours, daily, weekly, monthly, and annual lines. Most indicators and strategies are also applicable to different cycles. Why should we track and study different time cycles? 2. I think the most important significance of tracking and studying time cycles is that the low points in many cases will be triggered by the buying points of a small-level cycle. For example, sometimes the structure at the daily level is not formed, but the 60-minute structure is formed. "Structure" has position weights, and obviously this 60-minute structure can also be operational. But if you don't track and study the current structure of each cycle, it is easy to miss it.
3. One of the situations we most want to see is: at a certain moment, structures appear in each cycle, which is called "cycle resonance". This is an exciting sign, which will be much more successful and powerful than the structure triggered by a single cycle. But this situation can only be encountered. The market reversal force corresponding to the large cycle structure is large, and the market reversal force corresponding to the small cycle structure is small. The trend and structure under different cycles constitute the basis for buying and selling. 4. As mentioned before, "structure" is a left-side indicator and must be used in combination with the trend. It is not meaningful to use it alone. The greatest significance of "structure" is: with the help of the turning force generated by the structure, the K-line breaks through the trend.
So is the word "relay" more appropriate? The problem is that the trigger frequency of large-cycle structures such as daily lines is too low. At this time, it is necessary to look for opportunities from smaller cycles, although the strength and impact time of small cycles are not as good as those of large cycles.
5. If the price is very close to the trend, then the structure formed by any cycle may eventually form a breakthrough in the trend; what if the price is a little far from the trend?
Maybe the structure of the small cycle will not eventually form a breakthrough, but the structure of the large cycle can; what if the price is particularly far from the trend? Maybe the structure of any cycle cannot form a breakthrough. But the appearance of "structure" is the standard for buying, and I have to buy it. How to break it?
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