If you are a newbie or a semi-novice, this article will give you a new understanding of the cryptocurrency world and will improve your trading ability to a higher level.
Is there any K-line technology that can accurately predict the direction of shipping conditions?
K-line, various commonly used technical indicators, such as: Fibonacci, Bollinger Bands, moving average (MA), various trends, trends, forms, M tops, dojis, popular lines, hammer lines, three red soldiers, etc.
If you want to learn trading techniques, K-line disk technology is still the best way to improve your winning rate and judge the trend. But if you don’t use it well, if you use it blindly, or even mix all indicators together, it is easy to lose all your money.
Technology is a tool, and if it is a tool, you should use its skills and methods, rather than sticking to it. The conclusion is that there is no 100% accurate technical indicator, only a method that can help you avoid losing money and increase your winning rate!
First of all: let me talk about the few that I like to use most in daily transactions.
In my personal trading system, the core is the combination of Chaos Theory and Wave Theory.
Assisted by other indicators, of course, I won’t talk about these two in this article. If you understand, you will understand. There is no book that cannot explain it all. Just read the book yourself.
Today I will mainly talk about several auxiliary indicators that Doug often uses for judgment.
1、macd。
This is known as the king of indicators, suitable for all levels, simple and easy to use,
Look at the picture below,
Three lines: the white line with large fluctuations is the fast line, the yellow line with small fluctuations is the slow line, and the middle of red and green is the zero axis.
usage:
When white crosses yellow from above, it is a death cross, and when white crosses yellow from bottom to top, it is a golden cross. Death cross is bearish, while golden cross is bullish.
If the death cross occurs below the zero axis, the bearish force is strong, but above it, the bearish force is weak and easy to reverse.
The same applies to the golden cross.
But if the death cross occurs above, but continues to rise through the zero axis, the bearish force will be strong.
Used to judge trends.
The line is above the zero axis, rising, and the line is falling.
Okay, the article is limited, so I will just say this much. For beginners, it’s already great if you know this. If you want to learn more detailed knowledge, please come to me or watch the video.
For example, the key points, deviation: relatively complex articles are limited.
2. MA moving average:
This is an indicator that operates on the market, and it is also an indicator that Doug thinks must be used and can be used.
Let’s first talk about the settings for the grid: 20, 50, 120, and 200.
See the picture below
Based on the price behavior, you will find that every price callback and rebound is most likely related to the moving average.
For example, looking at the picture, the big pullback rebound point at the one-hour level fell on the purple line 200 three times.
Small pullback, at 120.
Of course, the charts displayed at each level are different, but the usage of the moving average is the same. You just need to find the current level to support the line. Of course, other lines can also be used as potential support points and callback points. If the 15-minute support line is 200, then the one-hour support line may be 50.
You will understand this by yourself and you will know it by using it more.
Just use it, as for the golden cross, dead cross, and divergence of the moving average, you can watch the video to learn.
Personally, I use the golden cross of moving average as the basis for entry.
That way, maybe halfway up the mountain, I would have a better way to enter.
3. Fibonacci Retracement
This is also a very useful indicator, and it is also an indicator that most traders will use.
Moreover, it is simple and easy to learn! It is also applicable to all levels. The higher the level of personal practical experience, the higher the accuracy, such as four hours.
But you can pull at all levels to determine the support points.
How to use it:
Look at the picture below. Select the level you are about to do.
In another trend, from the lowest point of the shadow line to the highest point of the shadow line, each line is a potential support.
Generally speaking, 38.2%, 50%, and 61.8% of these three
50% and 61.8% have the highest probability, which is the potential support level.
If you also open the MA moving average, you will find that the 50 line may overlap with a certain moving average.
The same operation is used to look at the rebound in the falling band (simple or not)
Of course, this is not absolute support, but potential support.
So where does the Fibonacci retracement support fail? Generally, it is the 78% line.
That is, you enter the market at the 50 line and can lose money at the 78 line.
You can also chase more, when the stop loss is below 50%, right? There are many uses
You can also use the 50 line as the profit target, right?
For more specific usage, I will not write them one by one. You can watch videos, read books, or directly contact Doug for strategies.
Note: Any indicator is the basis for judging the market, but a good entry point is not a golden cross or a dead cross.
To learn K-line, you must know the various forms of K-line. Shooting star line, engulfing, morning star. Pregnant line, piercing waiting, is a good entry signal. W low, head and shoulders breakthrough is also a very good judgment.
Where can I learn these? There are a lot of them on the Internet, and even children can learn them by watching them.
4. Volume: The most useful, depends on experience, high difficulty. I won’t go into details here, if you are interested, please contact me to learn.
5. Bollinger Bands, Kennett: and other channel indicators.
This is the indicator that novices often use for the first time when learning, and it is also the indicator that new kols like to use for analysis.
But there are many pitfalls
Regarding the channel indicator, I can only say that it has certain reference value, but it is not recommended to use the channel indicator for trading.
Most experienced traders like to call it the hindsight channel because it will change with the market.
Old traders who are good at using it will set the indicator value by themselves. At the daily level, it is indeed of reference significance, such as the possible bull top. Of course, this is generally used by some KOLs who only analyze but do not operate in real time. Because I analyzed that the big cake may fall after 11w, it is indeed correct, saying it every day, but it may fall after 3 months.
At a small level, it has little reference value for situations where there are major changes in the overall market trend, and can only be used as a secondary reference.
When there is a market trend, such as a sharp rise or fall, I generally don’t look at the channel.
But for example, in a bear market, when there is no market, the market is fluctuating sideways, and the trend is in a straight line channel, it can be used.
If you want to go short at the current position, look at some moving averages, suppress, and the position is also above the oscillation range, then open the Bollinger channel, and the position is also on the upper track, then go short
For me, this is the only function, it can be used or not, just to increase confidence. Maybe there are some good ones, welcome to introduce.
Many traders who specialize in short-wave contracts and only use channel indicators are generally novices.
From the channel, we can see that the range oscillation trend basically goes up and down in the channel range.
Well, there are too many indicators to cover in one article. Mastering the first three is already a good start.
Knowing the Chaos Theory and price behavior will open the door to a new world of trading.
So the most critical question is, if you learn these K-line indicators I mentioned, can you apply them? Yes, but if you learn them incorrectly and rely on them too much, it will hinder your cognition and increase your greed.
This is the biggest difference between ordinary newbies and professional traders.
For example: Bollinger Bands, according to technical indicators,
The first and second positions have effectively broken through the upper track, but there was not much increase upwards, and instead it fell back quickly.
So in actual operation, how should we do it to correctly judge the K-line and market conditions?
The length of the article is limited, so there is not much to say. Here is a brief description of the basic logic:
First point: Try to follow the trend, there are not so many reversals in the world.
Newbies like it. This coin has gone up. Damn, I missed it. It has gone up so much. Is it going to fall back? I’ll go short. ??? Then I die.
First, look at the macro-trend and determine a general direction:
For example, the current 9.24BTC daily level trend has begun to show a reversal trend (although it has not yet fully formed). The last daily level bottom is higher than the previous one. As long as it breaks through the 68,000-70,000 range and stabilizes, it may really enter the next wave of upward trend. This depends on the end of the year. The macro level is bullish.
Knowing the big level, we should be cautious to go short with a heavy position, or go short for a long time. (Note that the big trend is composed of countless small trends. When choosing the market, play short waves and cannot directly copy the big trend, unless you have a lot of money and don't mind being trapped)
First of all, there are many major trends, but as it is Sunday, the market liquidity is low, so there are not too many fluctuations. If we look at whether there is any major negative or positive news in the market today, we checked and confirmed that there is none. Then we look at the long-short ratio, which is basically the same. We also look at the volume, which does not fluctuate much. Knowing these four points, we can basically determine that today is a short-wave market.
So the current position is 63000,
Line 9.23
As soon as the Fibonacci average opens, the 30-minute line and the oscillating price range oscillates between 62500 and 65000. The trend is in the rising consolidation stage, the rising trend, so we will mainly fall, then we will directly support the 625 strong support of the channel to hang more, as long as there is no strong break, basically we will wait for the rebound market! Of course, I usually enter the market from the right side when playing the entanglement theory, because as a professional trader, I watch the market all day!
As we expected, the market has continued to rise recently. See the picture below↓
Line 9.23.
In the 1-hour main trend, the market has just changed, and the indicators are not obvious, but they also point to 63,000.
Conclusion: Big trend → small trend → current market trend (up, down, sideways, or high-amplitude fluctuation) → find support and resistance positions. Find the opening point, stop loss point, and target point. Calculate the loss-profit ratio.
Find the approach signal, open the hatch, and wait for the result.
That's the deal.
Trends are the result of market competition, supported by factors such as supply and demand, capital flows, and investor psychology. These factors will not be easily changed in a short period of time.
The big trend is made up of small trends, and small trends are subject to the big trend. When the trend reverses, the sensitivity of the small trend is higher than the big cycle!
Then about the long-short ratio:
Then one day, I posted a magic pill based on the liquidation value, which was very accurate. As a result, many fans went to learn it. As a result, someone posted the same website, using the liquidation value to teach how to make orders. See this magic order → Click to see the post
You can tell whether it is a miracle or not by looking at the candlestick chart. Everyone was shouting short on that day. Obviously, the trend is rising. The short liquidity above has slowly formed, and the price is closer to the short liquidity. The aggregate long-short ratio is already unbalanced. Still falling? Did you make more than 600 million from the short position? ?
As soon as this post came out, fans of the skirt pushed people to learn it the next day. I was really impressed.
So as I said at the beginning of the article, any method is useful, but no routine can be applied all the time because the market is changing.
My judgment on liquidity is based on the long-short ratio. I don't just look at this.
It does not mean that if there is more short liquidity, the stock price will definitely rise, and if there is more long liquidity, the stock price will definitely fall.
Any performance on the market is a reflection of the emotions at the time.
If liquidity is not seriously unbalanced, it will follow the trend. For example, if it rises, short positions will be cleared first. We should judge it in combination with the indicators we learned earlier.
All we can do is to increase the winning rate, ensure profitability, and make periodic profits. Waiting for the market and not being cleared out by the market is the way to make money!
