Chart analysis and trading strategy are different
Updated
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(BTCUSDT 1D chart)
The key is whether it can receive support around 36426.87 and rise to the first resistance zone.
This period of volatility will be around November 16 (November 15-17).
If it fails to rise above 36426.87, it is important to see whether support can be found around 32917.17-34110.32.
In order for this upward trend to be maintained, the price must be maintained above 29850.45.
If you have analyzed the chart with the above information, the important question is how to start trading, that is, how to create a trading strategy.
First, I decided that I could start buying when I saw support at a certain point or section through chart analysis, but I realized that I had to make several more decisions to actually buy.
1. Should I buy it in installments? If I buy it in installments, how many installments will I buy it in?
2. How much investment should be made when purchasing?
3. How to set the investment period between day trading and long-term trading.
4. When starting a transaction, how will you decide on a trading method, such as a stop-loss point or target point, and how will you realize profits?
As in the example above, in order to make a transaction, you need to think about and decide on many things.
However, when the chart analysis is completed and the time to buy comes, buy with a rough investment amount, roughly think about the stop-loss point and target point, and start trading.
And then, if the chart moves as expected, it's good, but if it doesn't, then you have to worry about the above.
Then, I think that because your thoughts are influenced by price fluctuations, you end up trading in the wrong direction, increasing the chances of your trading failing.
Therefore, you must have some basic understanding of trading strategy to be able to trade quickly.
The concept of a basic trading strategy can be customized to suit you using the example below.
1. The purchase principal, purchase method, selling method, stop-loss point determination method, and profit realization method must be standardized for each investment period.
Therefore, the basic concept of investment period from day trading to long-term trading must be determined in advance.
However, since each coin (token) responds differently, it is not easy to divide them accurately.
Therefore, you must first consider the size of the purchase principal and stop loss point for each investment period.
2. Trading must ultimately proceed with a contrarian approach.
Therefore, you should not proceed with trading by thinking the way you normally think.
Therefore, when the price rises, you must choose a point to sell, and when the price falls, you must choose a point to buy.
However, if you are new to trading, you want to buy when the price is rising and sell when the price is falling.
Since trading requires such a change in thinking, it is not easy to get used to it.
Therefore, it is necessary to take time to become familiar with trading by making many transactions with small investments until this change in thinking occurs naturally.
3. Trading is a psychological battle.
Therefore, if you start trading psychologically, you will feel psychologically anxious and burdened, and there is a high possibility that you will proceed with trading in the wrong direction.
Therefore, when you are about to start trading, you need to determine what your psychological state is like.
If you are judged to be psychologically excited, that is, anxious, you should not start trading.
Even if you start trading once or twice and make a profit, if you continue to trade while you are in a psychologically anxious or excited state, you will end up incurring large losses.
4. Additionally, trading is a game of probability.
Therefore, you must select a trend by combining various information obtained through chart analysis.
Therefore, the information obtained from chart analysis must contain a lot of objective information.
The analysis techniques that you study, such as wave theory or other patterns, ultimately have no choice but to be applied to your own psychology.
Therefore, rather than such information, you should start trading by selecting a higher direction or trend by combining the basic information obtained by using the chart indicators, that is, objective information.
There are a ton of chart analysis techniques out there.
However, I think that analysis techniques that have a selection point that you must choose are essentially useless if you are not prepared for the three psychological warfare mentioned above because it is highly likely that your psychology will be applied in the end.
Looking at the ideas currently published on TradingView, there seem to be a lot of wave theory and harmonic pattern analysis techniques.
These analysis techniques are excellent analysis techniques and have been proven by many users.
However, if you do not have a trading strategy like the one I mentioned earlier, you have no choice but to analyze charts and conduct other transactions.
Therefore, before studying various chart analysis techniques, you must first study the concepts of candles, moving averages, support and resistance.
Then you need to practice creating a trading strategy.
Once you are able to create a trading strategy to some extent, I think it would be a good idea to study various high-level chart analysis techniques.
In fact, if you can create a trading strategy, there is no need for advanced chart analysis techniques.
As I have said repeatedly, the more time you invest in chart analysis, thinking that chart analysis is the same as a trading strategy, the more you will inevitably feel the limitations of your trading skills.
This is because there are many cases where you cannot proceed with trading as you analyzed, so you have no choice but to be negative about trading.
-------------------------------------------------- -------------------------------------------
** All explanations are for reference only and do not guarantee profit or loss in investment.
** Trading volume is displayed as a candle body based on 10EMA.
How to display (in order from darkest to darkest)
More than 3 times the trading volume of 10EMA > 2.5 times > 2.0 times > 1.25 times > Trading volume below 10EMA
** Even if you know other people’s know-how, it takes a considerable amount of time to make it your own.
** This chart was created using my know-how.
---------------------------------
If you "Follow" us, you can always get new information quickly.
Please also click “Boost”.
Have a good day.
-------------------------------------
(BTCUSDT 1D chart)
The key is whether it can receive support around 36426.87 and rise to the first resistance zone.
This period of volatility will be around November 16 (November 15-17).
If it fails to rise above 36426.87, it is important to see whether support can be found around 32917.17-34110.32.
In order for this upward trend to be maintained, the price must be maintained above 29850.45.
If you have analyzed the chart with the above information, the important question is how to start trading, that is, how to create a trading strategy.
First, I decided that I could start buying when I saw support at a certain point or section through chart analysis, but I realized that I had to make several more decisions to actually buy.
1. Should I buy it in installments? If I buy it in installments, how many installments will I buy it in?
2. How much investment should be made when purchasing?
3. How to set the investment period between day trading and long-term trading.
4. When starting a transaction, how will you decide on a trading method, such as a stop-loss point or target point, and how will you realize profits?
As in the example above, in order to make a transaction, you need to think about and decide on many things.
However, when the chart analysis is completed and the time to buy comes, buy with a rough investment amount, roughly think about the stop-loss point and target point, and start trading.
And then, if the chart moves as expected, it's good, but if it doesn't, then you have to worry about the above.
Then, I think that because your thoughts are influenced by price fluctuations, you end up trading in the wrong direction, increasing the chances of your trading failing.
Therefore, you must have some basic understanding of trading strategy to be able to trade quickly.
The concept of a basic trading strategy can be customized to suit you using the example below.
1. The purchase principal, purchase method, selling method, stop-loss point determination method, and profit realization method must be standardized for each investment period.
Therefore, the basic concept of investment period from day trading to long-term trading must be determined in advance.
However, since each coin (token) responds differently, it is not easy to divide them accurately.
Therefore, you must first consider the size of the purchase principal and stop loss point for each investment period.
2. Trading must ultimately proceed with a contrarian approach.
Therefore, you should not proceed with trading by thinking the way you normally think.
Therefore, when the price rises, you must choose a point to sell, and when the price falls, you must choose a point to buy.
However, if you are new to trading, you want to buy when the price is rising and sell when the price is falling.
Since trading requires such a change in thinking, it is not easy to get used to it.
Therefore, it is necessary to take time to become familiar with trading by making many transactions with small investments until this change in thinking occurs naturally.
3. Trading is a psychological battle.
Therefore, if you start trading psychologically, you will feel psychologically anxious and burdened, and there is a high possibility that you will proceed with trading in the wrong direction.
Therefore, when you are about to start trading, you need to determine what your psychological state is like.
If you are judged to be psychologically excited, that is, anxious, you should not start trading.
Even if you start trading once or twice and make a profit, if you continue to trade while you are in a psychologically anxious or excited state, you will end up incurring large losses.
4. Additionally, trading is a game of probability.
Therefore, you must select a trend by combining various information obtained through chart analysis.
Therefore, the information obtained from chart analysis must contain a lot of objective information.
The analysis techniques that you study, such as wave theory or other patterns, ultimately have no choice but to be applied to your own psychology.
Therefore, rather than such information, you should start trading by selecting a higher direction or trend by combining the basic information obtained by using the chart indicators, that is, objective information.
There are a ton of chart analysis techniques out there.
However, I think that analysis techniques that have a selection point that you must choose are essentially useless if you are not prepared for the three psychological warfare mentioned above because it is highly likely that your psychology will be applied in the end.
Looking at the ideas currently published on TradingView, there seem to be a lot of wave theory and harmonic pattern analysis techniques.
These analysis techniques are excellent analysis techniques and have been proven by many users.
However, if you do not have a trading strategy like the one I mentioned earlier, you have no choice but to analyze charts and conduct other transactions.
Therefore, before studying various chart analysis techniques, you must first study the concepts of candles, moving averages, support and resistance.
Then you need to practice creating a trading strategy.
Once you are able to create a trading strategy to some extent, I think it would be a good idea to study various high-level chart analysis techniques.
In fact, if you can create a trading strategy, there is no need for advanced chart analysis techniques.
As I have said repeatedly, the more time you invest in chart analysis, thinking that chart analysis is the same as a trading strategy, the more you will inevitably feel the limitations of your trading skills.
This is because there are many cases where you cannot proceed with trading as you analyzed, so you have no choice but to be negative about trading.
-------------------------------------------------- -------------------------------------------
** All explanations are for reference only and do not guarantee profit or loss in investment.
** Trading volume is displayed as a candle body based on 10EMA.
How to display (in order from darkest to darkest)
More than 3 times the trading volume of 10EMA > 2.5 times > 2.0 times > 1.25 times > Trading volume below 10EMA
** Even if you know other people’s know-how, it takes a considerable amount of time to make it your own.
** This chart was created using my know-how.
---------------------------------
Note
There are times when what chart analysts say is important: where to buy, where to sell, where to stop loss.This is when you are not familiar with understanding charts and creating trading strategies.
If you start trading with information determined by someone else, most of the time the transaction will not go well.
This is because you created a trading strategy that suited you and started trading blindly without thinking about how to respond.
Therefore, when you buy at a point or section that is said to be a purchase point, you are lucky if it goes up, but if it goes down, you have no choice but to panic because there is no way to respond.
Therefore, you keep trading erratically and end up losing a large portion of your investment.
When someone tells you a buy point, a sell point, a stop loss point, etc., you must understand why you should start trading at that point.
Keep this in mind, and if you don't understand what the people you are following are telling you, it's important to get it explained again.
That way, if I can't contact that person, I can respond on my own.
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