Examples of criteria for creating a trading strategy
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We analyze charts in a variety of ways to determine trends.
I think the important thing is how to create a trading strategy using these analysis methods, not whether you can match the trend or not.
Therefore, even if you know the trend, if you do not create a trading strategy properly, you may end up with small profits or even losses.
Therefore, I think it is extremely important to find support and resistance points that can ultimately create a trading strategy and how to create a trading strategy based on those points.
(Heikin Ashi 1D chart)
(Renko 1D chart)
I think the Heikin Ashi chart and Renko chart supported by TradingView charts are good charts for identifying trends.
However, since the HA-Low and HA-High indicators created using the Heikin Ashi chart are implemented, we will not talk about the Heikin Ashi chart.
The advantage of Heikin Ashi charts and Renko charts is that they reduce fakes and whipsaws.
However, it is not easy to actually trade with only two charts.
That's because it's so difficult to see.
In particular, Renko charts can be more esoteric than Heikin Ashi charts.
The reason is that the price is expressed in certain blocks.
However, if you look at the way the chart is drawn, you can see that fakes and whipsaws have been reduced more than the Heikin Ashi chart.
So, just as I created the HA-Low and HA-High indicators using the Heikin Ashi chart, I am trying to create a standardized trading strategy using the Renko chart.
We added the TS-BW auxiliary indicator used in the existing chart to verify the basic direction.
The overall direction can be verified by whether the BW indicator is in an upward or downward trend.
Additionally, you can verify more detailed direction through the movements of the StochRSI indicator and the StochRSI EMA indicator.
We added the MS-Signal indicator to the price chart section to help you see the chart trend more intuitively.
With the addition of the MS-Signal indicator, I don't think there is a need to add the superTrend indicator.
Since the MS-Signal indicator is a curve, we wanted to help create a trading strategy by adding the superTrend indicator, which is expressed as a line.
Next, in order to create a more confident trading strategy, various indicators are displayed on the price chart so that you can intuitively check support and resistance points.
By doing this, I believe that the Renko chart, which was used as a trend chart, was expressed as a tradable chart.
No matter how good an analysis technique you know, if you cannot create a trading strategy that suits you, your trading is likely to ultimately fail.
Therefore, once you have found an analysis technique that suits you, you should focus on reducing your psychological burden by investing more time in creating a trading strategy rather than trying to develop the analysis technique.
The trading strategy is
1. Investment period
2. Investment size
3. Trading method and profit realization method
I think it consists of the three things above.
Steps 1 and 2 are steps to begin with a broader observation of the coin (token, item) you want to trade rather than the chart.
Therefore, in the coin market, it is necessary to check whether the coin ecosystem is expanding and which themes it is included in.
If you decide to trade a coin (token, item) that has been confirmed in this way, you must look at the chart of the coin (token, item) and create a trading strategy.
The decisions made in steps 1 and 2 of the trading strategy are classified into intraday and medium-term investment, short-term and day trading, etc., and the appropriate investment size is determined. Accordingly, actual purchases, sales, stop losses, etc. are made in step 3. You decide.
When purchasing, it is important to try to estimate the average purchase price as much as possible.
To do this, it is recommended to proceed with split purchases at the support and resistance points expressed in the chart above.
Selling for profit is also recommended through split sales.
However, you should try to sell when the price is rising.
This is because if you sell while the price is rising and falling, it can be quite difficult to create a follow-up trading strategy.
Therefore, when selling, it is recommended to conduct split sales using auxiliary indicators such as the BW indicator and StochRSI indicator.
I think stop-loss is something that should be done when there is a possibility that the price will fall further and cause larger losses.
Therefore, how to sell at the stop loss point is very important.
I believe that you can quickly learn a clear way to practice stop loss by conducting futures trading.
I believe that the overall rate of return is ultimately determined by how well you do your stop loss.
However, if possible, it is important to confirm your profit in advance before taking a stop loss.
Therefore, I think that when deciding buy, sell, or stop-loss points, you should not rely on price issues other than the chart.
This is because issues other than charts add subjective thoughts and can interfere with creating a proper trading strategy.
Therefore, when deciding on step 3 of your trading strategy, it is best to look at the charts first and then read various articles afterwards.
Whatever the method, if you have a trading strategy standard that suits you, that standard is the best trading strategy standard.
No matter how good the trading strategy standard is, if it does not fit your investment style, there is a high possibility that the transaction will ultimately fail.
When studying charts, it is best not to try to memorize the names of patterns or various indicators.
Those names are not helpful at all in creating a trading strategy.
Therefore, when studying charts or analysis techniques, you should try to find out what the key is.
Once you understand the core content, you need to think deeply about how you can use it to create a trading strategy.
You may have difficulty understanding this article because it contains a description of what you learned while conducting the transaction.
Also, it may sound abstract.
However, since it is information obtained through actual trading, I think it can be a way for those studying charts to learn more quickly.
Have a good time.
thank you
--------------------------------------------------
If you "Follow" us, you can always get new information quickly.
Please also click “Boost”.
Have a good day.
-------------------------------------
We analyze charts in a variety of ways to determine trends.
I think the important thing is how to create a trading strategy using these analysis methods, not whether you can match the trend or not.
Therefore, even if you know the trend, if you do not create a trading strategy properly, you may end up with small profits or even losses.
Therefore, I think it is extremely important to find support and resistance points that can ultimately create a trading strategy and how to create a trading strategy based on those points.
(Heikin Ashi 1D chart)
(Renko 1D chart)
I think the Heikin Ashi chart and Renko chart supported by TradingView charts are good charts for identifying trends.
However, since the HA-Low and HA-High indicators created using the Heikin Ashi chart are implemented, we will not talk about the Heikin Ashi chart.
The advantage of Heikin Ashi charts and Renko charts is that they reduce fakes and whipsaws.
However, it is not easy to actually trade with only two charts.
That's because it's so difficult to see.
In particular, Renko charts can be more esoteric than Heikin Ashi charts.
The reason is that the price is expressed in certain blocks.
However, if you look at the way the chart is drawn, you can see that fakes and whipsaws have been reduced more than the Heikin Ashi chart.
So, just as I created the HA-Low and HA-High indicators using the Heikin Ashi chart, I am trying to create a standardized trading strategy using the Renko chart.
We added the TS-BW auxiliary indicator used in the existing chart to verify the basic direction.
The overall direction can be verified by whether the BW indicator is in an upward or downward trend.
Additionally, you can verify more detailed direction through the movements of the StochRSI indicator and the StochRSI EMA indicator.
We added the MS-Signal indicator to the price chart section to help you see the chart trend more intuitively.
With the addition of the MS-Signal indicator, I don't think there is a need to add the superTrend indicator.
Since the MS-Signal indicator is a curve, we wanted to help create a trading strategy by adding the superTrend indicator, which is expressed as a line.
Next, in order to create a more confident trading strategy, various indicators are displayed on the price chart so that you can intuitively check support and resistance points.
By doing this, I believe that the Renko chart, which was used as a trend chart, was expressed as a tradable chart.
No matter how good an analysis technique you know, if you cannot create a trading strategy that suits you, your trading is likely to ultimately fail.
Therefore, once you have found an analysis technique that suits you, you should focus on reducing your psychological burden by investing more time in creating a trading strategy rather than trying to develop the analysis technique.
The trading strategy is
1. Investment period
2. Investment size
3. Trading method and profit realization method
I think it consists of the three things above.
Steps 1 and 2 are steps to begin with a broader observation of the coin (token, item) you want to trade rather than the chart.
Therefore, in the coin market, it is necessary to check whether the coin ecosystem is expanding and which themes it is included in.
If you decide to trade a coin (token, item) that has been confirmed in this way, you must look at the chart of the coin (token, item) and create a trading strategy.
The decisions made in steps 1 and 2 of the trading strategy are classified into intraday and medium-term investment, short-term and day trading, etc., and the appropriate investment size is determined. Accordingly, actual purchases, sales, stop losses, etc. are made in step 3. You decide.
When purchasing, it is important to try to estimate the average purchase price as much as possible.
To do this, it is recommended to proceed with split purchases at the support and resistance points expressed in the chart above.
Selling for profit is also recommended through split sales.
However, you should try to sell when the price is rising.
This is because if you sell while the price is rising and falling, it can be quite difficult to create a follow-up trading strategy.
Therefore, when selling, it is recommended to conduct split sales using auxiliary indicators such as the BW indicator and StochRSI indicator.
I think stop-loss is something that should be done when there is a possibility that the price will fall further and cause larger losses.
Therefore, how to sell at the stop loss point is very important.
I believe that you can quickly learn a clear way to practice stop loss by conducting futures trading.
I believe that the overall rate of return is ultimately determined by how well you do your stop loss.
However, if possible, it is important to confirm your profit in advance before taking a stop loss.
Therefore, I think that when deciding buy, sell, or stop-loss points, you should not rely on price issues other than the chart.
This is because issues other than charts add subjective thoughts and can interfere with creating a proper trading strategy.
Therefore, when deciding on step 3 of your trading strategy, it is best to look at the charts first and then read various articles afterwards.
Whatever the method, if you have a trading strategy standard that suits you, that standard is the best trading strategy standard.
No matter how good the trading strategy standard is, if it does not fit your investment style, there is a high possibility that the transaction will ultimately fail.
When studying charts, it is best not to try to memorize the names of patterns or various indicators.
Those names are not helpful at all in creating a trading strategy.
Therefore, when studying charts or analysis techniques, you should try to find out what the key is.
Once you understand the core content, you need to think deeply about how you can use it to create a trading strategy.
You may have difficulty understanding this article because it contains a description of what you learned while conducting the transaction.
Also, it may sound abstract.
However, since it is information obtained through actual trading, I think it can be a way for those studying charts to learn more quickly.
Have a good time.
thank you
--------------------------------------------------
Note
(question)I would like to know how to set the sell range when updating the new price (ATH).
(answer)
No special criteria can be set when updating the reported price (ATH).
However, you need to select the trading time by identifying the high point using Bollinger Bands, Price Channel indicators, etc., or looking at the expected point using Fibonacci ratios, etc.
If a trend is formed that deviates above the top or below the bottom of the Bollinger Band or Price Channel indicator, there is no choice but to respond with an expected point such as the Fibonacci ratio.
There is no difficulty in drawing the Bollinger Band or Price Channel indicators because they are self-drawn indicators.
However, charting tools such as the Fibonacci ratio require you to specify a selection point, so you need to be careful because you can select the point based on your own subjective thoughts.
Therefore, when using charting tools such as Fibonacci ratios, it is best to draw on large time frame charts whenever possible.
This is because you can exclude fake or whipsaw movements or your own subjective thoughts.
Therefore, I try to draw from the 12M chart whenever possible in the following order: 12M chart > 1M chart > 1W chart > 1D chart.
It is mainly drawn with the Trend-Based Fib Extension tool.
The selection point is
1. In an upward trend
Select the low of the rising candle (1), the high of the falling candle (2), and the low of the rising candle (3).
2. In case of downward trend
Select the high of the downward candle (1), the low of the rising candle (2), and the high of the downward candle (3).
The selection point is specified based on the above criteria.
You can easily find out how to interpret the Fibonacci ratio by searching on the Internet.
In fact, the method of using the retracement rate is explained, but the key is to think of each rate point as a support and resistance point and proceed accordingly.
Note
To draw support and resistance points, you must view and draw the 1M, 1W, and 1D charts in that order.
The reason is that I believe that support and resistance play a major role in the order 1M > 1W > 1D.
To draw support and resistance points, you need to be able to see the arrangement of candles.
Therefore, if you study charts, you should start by studying candles.
Next, you need to study price moving averages.
I think that you can draw support and resistance points only if you study the above two things first.
When studying charts, it's best not to try to memorize terms or patterns.
The reason is that in most cases, actual charts are deformed, so if you get stuck in a term or pattern, the only thing you end up doing is checking after everything has passed.
In other words, it is of no help in creating an actual trading strategy.
So, you have to see the flow. We need to focus on observing and studying what kind of flow changes, or volatility, occur.
After studying this, you will be able to read the flow of the chart to some extent.
However, drawing support and resistance points directly is likely to reflect your subjective thoughts.
Therefore, it is important to draw support and resistance points in an objective way.
In that sense, it is recommended to utilize the indicator that displays support and resistance points included in the HA-MS indicator.
The indicators in the picture are private indicators, but if the chart is shared, it can be used without any restrictions.
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