The key to starting a trade is support and resistance points

Sep 16

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As you study candles, you will learn about trend reversal sections.

Therefore, rather than learning the shapes or patterns of candles, when you study them, you will be able to see the support and resistance points and sections made up of the selling area and trend reversal sections in a big picture.

Therefore, rather than trying to memorize the shapes or arrangements of candles, it is important to see whether support and resistance points and sections are formed when such shapes, arrangements, and patterns appear.

The same goes for other studies related to charts.

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As you study candles, you will find that what you have studied appears in the sections where candles are gathered.


These areas are drawn as horizontal lines to indicate support and resistance points.

However, objective information is needed to conduct trading on the horizontal lines drawn like this.

Otherwise, even the support and resistance points you drew will likely become useless lines if you conduct barrack trading because you don't trust them.

Be careful because your psychological state will interfere with analyzing the chart.

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The easiest way to obtain this objective information is the Heikin Ashi chart and the Renko chart.

The Heikin Ashi chart and the Renko chart help you check the trend because they show fewer fakes and sweeps.

(Heikin Ashi chart)


(Renko chart)


Among these, you can immediately see that the Renko chart is a bit easier to find support and resistance points.

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You can think of the points near the end of the blocks on the Renko chart as having strong support and resistance points.

Therefore, among the horizontal lines drawn on the chart above, the 2800.0 and 4000.0 points are the end points of three blocks, so they can be seen as strong support and resistance points.


If you change the Renko chart to a regular candle chart, you can clearly see that it will form support and resistance points or sections.

However, since the Renko chart changes the price in blocks, it is difficult to trade at this point.

Therefore, the Heikin Ashi chart or Renko chart is good to use when analyzing the chart, but it is difficult to trade.

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To compensate for this, we created a horizontal line at the price position using indicators (StochRSI, OBV, CCI, RSI) that have been used for a long time.

The horizontal line connected to the current candle position plays the role of the current support and resistance point.

And, since the longer the horizontal line, the stronger the support and resistance role, you can see that it plays the role of support and resistance even if it is not connected to the current candle.

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The support and resistance points drawn on the Heikin Ashi chart or Renko chart are difficult to use for trading, but you can easily check the support and resistance section by looking at only the 1D chart.

However, in order to display support and resistance points with a general candle chart, support and resistance points must be displayed on the 1M, 1W, and 1D charts.

And, the order of charts with strong support and resistance is 1M > 1W > 1D charts.

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When you look at the 1M, 1W, and 1D charts using the HA-MS indicator, horizontal lines like the above are displayed.


You can display them by changing the line type or line thickness to make them easier to see and then proceed with trading.

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The above content corresponds to the method of finding support and resistance points included in general chart-related books.

Of course, it is different from the explanation in the chart-related book, but I explained how to use indicators to more clearly indicate support and resistance points.

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Even if you trade with the support and resistance points above, it will not work well when you actually trade.

This is because you are not familiar with the most important trading strategy in trading.

In conclusion, the most important thing is to create a trading strategy, rather than finding the support and resistance points explained above, looking at the trend line, or looking at indicators.

However, it is very difficult to create a trading strategy that fits your investment style from the beginning.

So, you should practice creating a trading strategy that suits you while trading based on the information of the objective chart.

In order to trade, you need to decide on the following three things:
1. Investment period
2. Investment size
3. Trading method and profit realization method

The above three things must be determined.

No. 1 and 2 are determined according to your investment style.

Therefore, it is recommended not to change No. 1 and 2 after you start trading.

3. Based on the information of the actual chart, the buy section, sell section, and stop loss point are determined.

In addition, the profit realization method can be determined according to the investment period.

The profit realization method is:
1. How to get cash profit
2. How to increase the coin (token) corresponding to the profit
There are methods 1 and 2 above.

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In order to create a trading strategy, it is important to display all the information you want on the chart before starting the transaction.

If you do not, and then display lines on the chart after starting the transaction, psychological factors will be added and displayed, so the possibility of not trusting the lines drawn after starting the transaction increases.

To prevent this, it does not matter if you use the indicator added to the HA-MS indicator.

The reason is because it is objective information.

You should increase profits or reduce losses by adjusting the investment ratio while conducting the transaction using this objective information.

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Have a good time.
Thank you.

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Sep 18

Note

#NAS100USD

The key is whether it can rise above 19582.6 and receive support.

(The 19582.6 point is the HA-High indicator point on the 1W chart.)

If not,
1st: 19143.2
2nd: 18788.2-18072.5
You need to check whether there is support near the 1st and 2nd above.

The StochRSI indicator has changed its slope in the overbought zone.

In this case, even if the price rises further, it is highly likely that it will eventually fall.

At this time, you need to check where the current support and resistance zones are.

This is because there is a possibility of receiving support near the support and resistance zones.


Currently, the strongest support zone is 15.9K-16.3K.

The next important zone is 17854.8-18250.3.


If it rises above 19852.6,
1st: 20313.8
2nd: 21039.7-21137.6
3rd: 22497.6
You should check for support near the 1st-3rd above.

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The StochRSI indicator is created by price fluctuations.

Therefore, the StochRSI indicator is a lagging indicator.

Therefore, when the StochRSI indicator is created, price fluctuations occur before it.

However, since the StochRSI indicator creates waves, I think it is a useful indicator because it gives you time to figure out how to respond to waves.

However, you must mark the support and resistance points drawn on the 1M, 1W, and 1D charts on the chart.

This is because you can decide which point or section to respond to.

Sep 19

Note

The StochRSI indicator is located in the overbought section on the charts of most coins (tokens).

The fact that the StochRSI indicator is located in the overbought section means that it is forming a high section.

Therefore, in order to continue the uptrend, a section to reset the StochRSI indicator is absolutely necessary.

It is important to support this initialization section at a certain support and resistance point.

The initialization of the StochRSI indicator must touch the oversold section.


If you look at the ETHUSDT chart, it has fallen from the overbought zone but has not touched the oversold zone.

Therefore, it can be said that the StochRSI indicator has not yet been initialized.

In this state, it is highly likely that the previous wave will be strengthened.

Therefore, it can be seen that ETH is likely to have a sharp rise.