The above article talked about the importance and role of liquidity. For a single benchmark, good liquidity is a prerequisite for technical analysis. Technical analysis without considering liquidity is rogue.

Technical analysis runs through the entire process of our trading, from opening a position to escaping the top, we cannot do without technical analysis; usually, the results of technical analysis will be earlier than the macro level; at present, the principles I have summarized myself are that when there are multiple external positive/negative factors, technical analysis should be taken as the basis and other news should be ignored; if technical analysis is inconsistent with other judgment indicators such as macro and liquidity, then we should wait and see cautiously or open a small position; if technical analysis and liquidity are consistent at the macro level, then we should go all in with a heavy position; in addition, we should absolutely respect the technical level, never go short when technical analysis is upward, and never go long when technical analysis is downward.

Generally speaking, the larger the K-line level, the less noise, and the more it can reflect the real trend of the market. This is why traders who use large levels as trading principles usually earn more and live longer.

So how do you conduct technical analysis? Of course, technical analysis varies from person to person. Find the one that suits you, has a high winning rate, and can make money. My method is for reference only.

One is the morphological trend (which can also be understood as a trend line): If the low point of each callback of the large-level K-line is higher than the previous one, then it can be understood as an upward trend (note that it must be a large level here)

Second, volume and price. No matter how the main force changes its operation, it will buy and sell, so the volume and price can reflect the intention of the main force. If the volume breaks through the pressure level, it is bullish; if the volume breaks through the support level, it is bearish. (Pay attention to the upper and lower shadows, you can't just look at the volume)

The third is the pressure and support levels formed by the transaction concentration area/previous high, previous low/integer. What is the transaction concentration area? It is the area where retail investors and investors change hands for a long time, but the price does not fluctuate greatly. Generally speaking, the transaction concentration area is not a specific value, but usually a range.

As long as the pattern trends upward and the volume breaks through the pressure level, you should be bullish; if the pattern trends downward and the volume falls below the support level, you should be bearish.

So what does it mean to stabilize and break through? I have personally observed and experimented many times that if it stabilizes, it mainly depends on the closing price of 3 4 hours. If the closing price stabilizes, it can be understood as a true breakthrough, and vice versa. So what is a breakout? If the pin cannot be retracted, it is called a breakout.

Technical analysis is simple, but many people still cannot make money because they lack patience.

The following will share how to use other indicators to assist in judging bull and bear markets. #token2049 #带你看看币安Launchpad