Today we will talk about the fundamental of trading,
What is trading? Is it technical analysis or pattern analyze?
After being failure, I finally found out,
the fundamental of trading is actually the market itself.
All markets have only two status: consolidating and unilateral market, one with a trend and one without a trend.
May I ask whether the current trend of BTC is unilateral or consolidating?
How can we judge a trend?
There are 3 main points in trend trading:
1. After the reversal signal appears at the Higher TF, trade the same direction in the smaller TF, and the opposite trade is not recommended.
And continue to move stop loss in the direction of higher TF trend.
2. If you want to get the unilateral trend, you must give up to frequent trading in a short period. How to avoid frequent trading?
Choose to use higher TF trends. However, entry must still be made in a smaller TF to ensure a good profit and loss ratio.
3. After entering the market in a smaller TF, move the stop loss to the open position to ensure your position safely.
Due to the strong volatility of cryptos,
Therefore, I will only look at weekly TF.
It can be found at the weekly TF:
BTC bottom W
ETH W bottom
XRP falling wedge breakout
LTC daily triangle breaks upward
There are bullish signals in mainstream cryptos.
The bullish signal comes after 3 years of consolidating after 3/12 big dump,
We have no reason to be bearish here,
and enters the market after the price retested and buy the dips.
Back to the chart,
The picture shows the BTC 4H TF chart,
It can be seen that an upward triangle is currently forming,
but what should be paid attention to is the possibility of false breakout.
The upper resistance mentioned in the previous article that the 16301 price is the weekly Fibonacci 0.786.
There is a high probability that the price will fall back from that level.
However, is it possible to complete the price drop when retail investors enter the market to chase high?
This probability is quite high.
Therefore, the W bottom neckline of BTC weekly TF is still the best entry point in the current trend.
Now that the trading strategy has been planed,
Just wait and see.
What is trading? Is it technical analysis or pattern analyze?
After being failure, I finally found out,
the fundamental of trading is actually the market itself.
All markets have only two status: consolidating and unilateral market, one with a trend and one without a trend.
May I ask whether the current trend of BTC is unilateral or consolidating?
How can we judge a trend?
There are 3 main points in trend trading:
1. After the reversal signal appears at the Higher TF, trade the same direction in the smaller TF, and the opposite trade is not recommended.
And continue to move stop loss in the direction of higher TF trend.
2. If you want to get the unilateral trend, you must give up to frequent trading in a short period. How to avoid frequent trading?
Choose to use higher TF trends. However, entry must still be made in a smaller TF to ensure a good profit and loss ratio.
3. After entering the market in a smaller TF, move the stop loss to the open position to ensure your position safely.
Due to the strong volatility of cryptos,
Therefore, I will only look at weekly TF.
It can be found at the weekly TF:
BTC bottom W
ETH W bottom
XRP falling wedge breakout
LTC daily triangle breaks upward
There are bullish signals in mainstream cryptos.
The bullish signal comes after 3 years of consolidating after 3/12 big dump,
We have no reason to be bearish here,
and enters the market after the price retested and buy the dips.
Back to the chart,
The picture shows the BTC 4H TF chart,
It can be seen that an upward triangle is currently forming,
but what should be paid attention to is the possibility of false breakout.
The upper resistance mentioned in the previous article that the 16301 price is the weekly Fibonacci 0.786.
There is a high probability that the price will fall back from that level.
However, is it possible to complete the price drop when retail investors enter the market to chase high?
This probability is quite high.
Therefore, the W bottom neckline of BTC weekly TF is still the best entry point in the current trend.
Now that the trading strategy has been planed,
Just wait and see.
