Support and resistance zone: 104463.74-106133.74
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(BTCUSDT 1W chart)
When a new candle is created, you should check if the HA-High indicator is created at the 99705.62 point.
The reason is that the HA-High indicator was created, which means that it has fallen from the high point range.
In other words, it also means that it can fall to around or below the 97705.62 point.
Since the current candle fell to around 99705.62 and then rose, it can rise like this when a new candle is created.
We have several indicators that can determine the high point.
Representative indicators include DOM (60), StochRSI 80, and HA-High.
Therefore, the high point range is 104463.99-104984.57 and 97705.62.
Therefore, in order to turn downward, it is likely to start when it falls below 104463.99-104984.57 and shows resistance, and it can be interpreted that the downtrend is confirmed when it falls below 97705.62.
If we think about it the other way around, if the price stays above 104463.99-104984.57, it will eventually create a new high.
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When we first study charts, we start to become curious about charts as we learn about price moving averages.
As such, when we look at charts, our understanding of charts changes depending on how well we understand the average value.
However, when we first learn about price moving averages in chart analysis, we start to study all sorts of different analysis techniques as we realize that there are ambiguous parts in conducting transactions.
As a result, chart analysis becomes more and more difficult, and we end up giving up on chart analysis.
If you have studied chart analysis in your own way without giving up on it, you will realize that it will eventually converge to the average.
No matter what indicator or analysis technique you use, you will eventually converge to the average and then diverge.
Therefore, we should try to analyze the chart using the easiest and most convenient method.
The reason is that chart analysis is ultimately just a means to create a trading strategy and has no other meaning.
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The basic trading strategy on my chart is to buy near the HA-Low indicator and sell near the HA-High indicator.
The HA-Low and HA-High indicators are indicators created for trading on the Heikin-Ashi chart and ultimately represent the average.
The HA-High indicator is the average value that represents the high point range, and the HA-Low indicator is the average value that represents the low point range.
Therefore, if it is supported and rises near the HA-Low indicator, it is a buying period, and if it is resisted and falls near the HA-High indicator, it is a selling period.
However, since it is an average, if it is supported and rises near the HA-High indicator, it is likely to show a stepwise upward trend, and if it is resisted and falls near the HA-Low indicator, it is likely to show a stepwise downward trend.
Because of this, we need to adopt a split trading method.
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The auxiliary indicator, StochRSI, is an indicator that moves based on the 50 point.
Therefore, when the StochRSI indicator value is below 50, we need to focus on finding a buying point, and when it is above 50, we need to focus on finding a selling point.
A decisive hint for this is when it enters the overbought or oversold zone.
The auxiliary indicator, OBV, is an indicator that adds up the difference in trading volume according to price.
If you divide the OBV indicator into High Line and Low Line and understand the movement of OBV, you can understand the movement of the price to some extent.
However, since not all indicators follow the price trend exactly, you should not try to judge everything with just one indicator.
If you express the OBV indicator in the form of an oscillator, it will look similar to the MACD oscillator.
As I mentioned earlier, this is because the chart eventually converges to the average value.
Using this characteristic, we combined the OBV indicator with a MACD-type oscillator.
If it is located below 0 based on the 0 point, it means that the selling pressure is high, and if it is located above 0, it means that the buying pressure is high.
No matter what indicator or analysis technique you study, you must have a solid basic understanding of the average value.
If not, no matter how good the indicator or analysis technique you learn, you will not be able to analyze it as you studied and create a trading strategy when you actually trade.
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(1D chart)
It is highly likely that the uptrend will resume if it rises above the HA-High indicator point of 108316.90.
To do so, it is important to see if it can receive support and rise around 104463.99-106133.74.
If it fails to rise, it will eventually show a downward trend again.
If it meets the HA-High indicator and falls, it is likely to fall until it meets the HA-Low indicator.
Currently, the HA-Low indicator is formed at the 89294.25 point, but as the price falls, the HA-Low indicator is likely to be newly created.
Therefore, we need to check if the HA-Low indicator is newly created when the price falls.
Since the OBV of the auxiliary indicator is located near the Low Line and the OBV oscillator is also located below the 0 point, we can see that the selling pressure is strong.
Therefore, we need to check whether the OBV rises above the High Line when it is supported near 104463.99-106133.74 or whether the OBV oscillator rises above the 0 point.
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I think that all indicators or analysis techniques are ultimately tools that confirm whether there is support at the support and resistance points or sections drawn on the 1M, 1W, and 1D charts.
Therefore, in order to use indicators or analysis techniques, it depends on how well you understand and draw the support and resistance points or sections according to the arrangement of the candles.
Therefore, you need to first check how reliable the support and resistance points you drew are and practice creating a trading strategy accordingly.
Ultimately, it can be seen that how well the support and resistance points are drawn depends on how well the chart analysis or trading strategy is made.
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If you look at the 1W chart and the 1D chart, you can see that the important volatility period is around June 22.
The volatility period of the 1W chart is from June 16 to 29.
The volatility period of the 1D chart is from June 10 to 14 and from June 21 to 23.
Therefore, when the HA-High indicator of the 1W chart is generated at the 99705.62 point, it is important to maintain the price above 99705.62 after passing the volatility period of the 1W chart.
Since the HA-High indicator on the 1D chart is formed at 108316.90, we need to see if it can be supported and rise near 108316.90.
In summary, we can see that the important support and resistance range in the volatility period is 99705.62-108316.90.
Among these ranges, it is expected that the wave will start depending on whether the current price is supported in the 104463.99-106133.74 range.
In other words, the 104463.99-106133.74 range corresponds to the middle range of the 99705.62-108316.90 range, the average value.
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Thank you for reading to the end.
I hope you have a successful transaction.
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- This is an explanation of the big picture.
(3-year bull market, 1-year bear market pattern)
I will explain more details when the bear market starts.
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