For a larger scale, please repeatedly watch the first two minutes of the latest Ethereum video.
At any level, as long as a trend type including a central point emerges, it already has the conditions for reversal, regardless of whether it subsequently hits new lows; the larger the scale, the more reliable it is. Typically, I apply this logic to the 30F, 1H, and 4-hour levels.
Theoretical Misconception: Do not treat new lows and divergences as truths! Do not treat new lows and divergences as truths! The second type of buy and sell points is the most rigorous practice. With dual central divergences, making a first type buy and sell point is safe. Making a second type buy and sell point is safe when there is no divergence.
A violent drop or rise definitely requires a consolidation to repair indicators. In the context of the Chán theory, this is a central oscillation. Many people hope that after buying today, the price will start rising today. If after two days they see no movement, they begin to doubt themselves, repeatedly open positions to stop losses, then short, and suffer significant losses. After being educated so many times, are you still holding onto this view?
Short-term trading is not impossible; it requires in-depth research and honing of skills. It requires relatively professional traders to achieve.
Central oscillation is garbage time! 80% of the market is garbage time; it’s just waiting!!