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Chart Analysis and Trading Strategy (2)

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If you look at the candle that the finger is pointing to, you can see that it is a bearish candle with Open > Close.

If you look at this on a 30m chart, you can see that it moves as follows and forms lows and highs.

These candle movements come together to form a candle arrangement, and by looking at this, we ultimately set support and resistance points.

As your understanding of candles deepens, you will study charts in various ways.

The reason is that you may know it when you look at the chart, but you cannot when you trade.

That is, because the understanding of candles is not clear.

As you study the charts over and over again, you will learn that charts tend to converge to the median and average values.

You learn that they converge to the median and average values while studying various indicators, but you end up not knowing what you can learn from them.

What is important in the arrangement of candles is that the arrangement of the Open and Close bodies and the Low and High tails that make up the candles play an important role in setting support and resistance points.

I recommend that you understand this explanation through the Internet or a book.

The reason is that it is something that requires a lot of time investment to acquire.

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The HA-MS indicator was created to quickly display support and resistance points as objective information.

Therefore, you can see that when the channel composed of the HA-Low indicator and the HA-High indicator is broken, a trend is formed, and if not, a sideways movement is shown.

The HA-Low, HA-High indicators are indicators created by combining the arrangement of candles and the RSI indicator on the Heikin-Ashi chart.

Therefore, the trading strategy is used to create a trading strategy depending on whether there is support near the HA-Low, HA-High indicators.

The other indicators, BW(0), BW(100), DOM(-60), and DOM(60), are used as support and resistance to create a detailed response strategy.

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Based on this information, trading should be divided into trading in the sideways section and trading in the trend to create a trading strategy.

This trading time is created based on whether there is support in the HA-Low, HA-High indicators.

Since it is made of indicators, I think it provides objective information for chart interpretation with others, reducing the room for controversy.

This is the fundamental reason for using indicators.

It is because we can share objective information with each other.

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In trading within the sideways section, information about the trend is not particularly necessary.

If you set the sideways section with your own indicator or support and resistance points, you can trade based on whether there is support at the end of that section.

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However, when you leave the sideways section, information about the trend is necessary.

That is why we use the M-Signal indicator and Trend Cloud indicator on the 1D, 1W, and 1M charts as indicators for the trend.

For short-term information, you can use the M-Signal indicator and Trend Cloud indicator on the 1D chart.

If the Trend Cloud indicator is displayed in green and the price is maintained above the M-Signal indicator on the 1D chart, it can be interpreted that there is a high possibility of a turn to an uptrend.

If not, it can be interpreted that there is a high possibility of a downtrend.

The mid- to long-term trend can be identified by checking the arrangement status of the M-Signal indicator on the 1W chart and the M-Signal indicator on the 1M chart.

That is, if the M-Signal on the 1W chart > the M-Signal on the 1M chart, it can be interpreted that the mid- to long-term trend is maintaining an uptrend.

Therefore, in order to continue the uptrend from a long-term perspective, the price must be maintained above the M-Signal indicator on the 1M chart.

If not, it is recommended to make short trades if possible.

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To better set the support and resistance points, look at the 1M chart > 1W chart > 1M chart in that order and draw a horizontal line on the indicators (HA-Low, HA-High, BW(0), BW(100), DOM(-60), DOM(60)) displayed on the chart and mark them on the chart.

Mark the support and resistance points on the chart as above.

This marks the support and resistance points with the low and high points.

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It is not easy to start trading at the low or high points every time.

Therefore, as I mentioned earlier, it is important to create a detailed response strategy based on the median and average values.

For this, the StochRSI 50 indicator is displayed.

In addition, the Close of the Heikin-Ashi chart of the 1D chart, which can be usefully utilized when trading below the 1D chart, is added.

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The information I mentioned above is ultimately information that can be obtained through chart analysis.

You can create a trading strategy by deciding whether to check it directly with your eyes and indicate support and resistance points, or to use an indicator that can be checked more quickly.

Chart analysis is about understanding the movement of the chart, and actual trading is conducted according to the trading strategy.

You may think that chart analysis is the trading strategy, but it is not.

No matter how well you analyze charts with your eyes, if you analyze charts when your psychological state is unstable due to subjective thoughts based on various information other than the chart, as I mentioned earlier, you may end up trading in the wrong direction.

To prevent this, it is necessary to use indicators so that subjective thoughts are not applied.

Even if you start trading at the support and resistance points created by the indicator, and it goes in the opposite direction and you suffer a loss, the influence will be weak.

The reason is that you created a trading strategy with the support and resistance points created by the indicator in advance.

Things to consider when starting a trade in a trading strategy are:
1. When to buy or how to buy
2. When to cut loss or how to cut loss
3. How to realize profit

For this reason, it is important to set support and resistance points through chart analysis.

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It is better to do chart analysis briefly.

If you spend too much time analyzing charts, you may end up being trapped in your own subjective thoughts, so be careful.

I think you can tell whether you will do chart analysis in an analyst-like manner or in a chart analysis necessary for trading by looking at how the support and resistance points are marked on the chart.

The ideas of chart analysis often do not include things that need to be considered when starting a trade.

Therefore, in order to apply them to actual trading, you need to create a trading strategy through chart analysis.

The chart analysis for trading reduces the need for separate chart analysis because the information necessary for the trading strategy is displayed on the chart.

However, it may need to change depending on your investment style or the time frame chart you are actually trading on, but it can be advantageous for trading because the support and resistance points are marked.

To ensure this, you need to create an indicator and receive support and resistance points as objective information.

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Thank you for reading to the end.
I hope you have a successful trade.

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6 days ago

Note

#GALAUSDT

I think you will be able to understand the basic methods of how to analyze charts and how to create a trading strategy.

Now it's time to put it into practice.

If you have created a trading strategy, you should trade accordingly.

If you want to continue trading the current coin (token) in the mid- to long-term, you can realize profits by increasing the number of coins (tokens) corresponding to profits.

In other words, when the price rises, you sell a certain portion of the purchased amount.

If you sell in multiple installments like this, the original purchase amount will eventually be cashed out, and only the coins (tokens) corresponding to profits will remain.

If you increase the coins (tokens) corresponding to profits like this, you will be able to trade without any fluctuations no matter how large the volatility is.

If you want to make cash profits, you can sell them in quantity.

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