The three-step principle
Step 1: Identify the trend
Looking at the daily trend, we can see bulls. From the perspective of naked K, the price has gone through two complex adjustments and has no downward momentum.
Moving average bullish trend, bullish trend
The 4-hour white line is a bullish structure
After the first step of analysis, the conclusion is that both levels are bullish, so go long
Start the second step: draw the key position
The purpose of drawing key positions is to find that the market may be supported at these positions and there are trading opportunities, but it does not mean that there will be opportunities. Analysis is analysis, but trading and analysis are two different things.
The analysis is done, but it does not mean that the market will give opportunities, that is, there may not be trading opportunities at this position.
Whether it can exist depends on the signal, don't make blind guesses.
The third step is to wait for the confirmation of the signal and then you can enter the market.
You see, analyzing the market is not difficult, it’s just that simple.
Then why is it that everyone can do good analysis but are so bad at placing orders?
Because you don’t know what cycle your order is in.
For example, you originally made a 4-hour order and followed the trend of the daily chart.
But as you go along, you start to break the rules and start buying at the bottom in 5 or 1 minute.
But at this time, the price trend callback has not been completed, so you will continue to lose money.
When the real market comes, your principal has been completely depreciated, and you have no money to operate.
Therefore, when we are trading, we should analyze the market and wait patiently, and avoid over-analysis and over-trading.
The above is the buying point of ETH 4-hour contract. It does not constitute investment advice. You are responsible for your own profits and losses.
I am Coach Panda, who is good at explaining complex issues in a simpler way. See you next time.
