I think it's needless to say that you probably already have the answer in your heart when you enter this market.
Ordinary people can only find a few industries to turn their fortunes around:
Opening a store: Starting a business with zero experience, huge costs, slow return on investment, excessive energy consumption, and unreliable employees...
V-commerce: Limited connections, inability to make a face, fierce competition, severe product homogenization, and rampant brands with unguaranteed quality...
DY Entrepreneurship Guide: This grid store, milk tea shop, Cainiao Station, DY promoting mini-programs, hotel novelty boxes, old clothes recycling, film editing accounts... Customers - Products - After-sales.
Part-time jobs: Didi, film editing, book interpretation, maintaining public accounts, editing, translating... exchanging time for money, another way to hustle...
But trading: No need to consider customer issues, no need to consider product issues, no need to consider after-sales issues... As long as you learn the technology well, knowledge creates wealth!
If you already have a stable job, since you understand this circle, you must also want to see if there is an opportunity to become your (second career) because you know a stable job won't make you rich.
Introduction:
Many people wonder what a trading system is, and how can one find their own system among countless trading systems?
Today we will realistically discuss a trading system that is simple and effective. (I treasure not being greedy, and you treasure jade; if you take it with me, you will lose your treasure.)
This system has over 90% win rate in 100 trades, so how does it work? What you need to do now is quickly like and follow.
Indicator settings
This trading system only uses two free TradingView indicators. Friends who do not use TradingView need not worry; these two indicators are available in many software. The overall interface looks something like this:
The first indicator used is the MACD histogram. We will not discuss the underlying logic of MACD here. We will only look at its usage.
The principle is simple. When the upward or downward trend is strong, the peaks of the MACD histogram become very high or very deep. When the momentum weakens, the peaks of the MACD histogram shorten.
In this system, MACD plays a crucial role in verifying the continuity of price movements. To capture trading signals, we will closely monitor the dynamic changes in the MACD histogram, particularly patterns of continuous increases or decreases.
It is worth noting that this has a similar essence to the concept of divergence. However, success or failure often depends on a little-known detail that is unfamiliar to most investors. When looking for divergence signals, be sure to pay attention to the significant differences between peaks. This continuous and significantly varying peak divergence phenomenon often contains richer trading opportunities.
Setting One:
We set the fast line length of the parameters to 13 and the slow line length to 34, eliminating the useless golden and dead crosses.
As shown in the diagram below:
Setting Two:
The second indicator used is ATR, which is used to calculate the stop loss level in this system. We set the parameters to 13.
It's that simple. The above is all the indicators of this trading system. The entire trading system has clear and definite entry and exit points, allowing anyone to accurately judge when to enter and exit the market. Next, we will look at the actual operation of this system combined with specific examples.
3. Indicator usage
This is the 15-minute chart of Bitcoin:
Four steps:
1. First, find two or three MACD columns with significant differences that are continuously increasing.
2. Next, find the corresponding candlestick for MACD and check if the low points of the candlestick are continuously decreasing.
3. When the solid MACD column turns into a hollow one, the corresponding candlestick of the first column serves as our entry candlestick.
4. Use the low point of the entry candlestick minus the corresponding ATR value as the stop loss point.
If the risk-reward ratio reaches 1:2 as our profit target, then this trade has already exceeded its task. See the diagram below:
Look at an example of a short position; the short position also needs to meet these conditions, see the diagram below:
1. First, find the MACD columns above the zero line with significant differences between the peaks that are continuously decreasing.
2. Next, check if the corresponding candlestick high points of MACD are continuously making new highs (preferably wedge-shaped structure).
3. The corresponding candlestick when the solid MACD column turns into a hollow one serves as the entry point.
4. Use the high point of the entry candlestick plus the ATR value as the stop loss level.
Take profit can also be chosen in batches when the risk-reward ratio is 1:1, 1:2, or even higher, and as you can see, this trade quickly achieved its target.
4. Key points
Key points for opening a position:
Price shows continuous peaks, two to three.
The MACD histogram shows significant divergence.
Volume columns show signals for opening positions.
Stop loss principles:
Long: Stop loss = Low point of entry candlestick - Corresponding ATR value
Short: Stop loss = Low point of entry candlestick + Corresponding ATR value
There is another indicator that can be used. Considering that not all friends can use TradingView, the two indicators used in this article can be seen in many software. Friends using TV can add 'divergence for many indicators V4' in the indicators, as shown in the diagram below:
Automatically helps you find divergences, making it more convenient.
Finally, it should be noted that although the success rate is very good, it has also reached about 70% under a risk-reward ratio of 1:2, and a win rate of over 90% can be achieved with a risk-reward ratio of 1:1.5. As for higher risk-reward ratios, you will see this in practice.
Therefore, which take-profit method is most suitable for you, please consider for yourself. Take-profit can be done on the right side, letting profits run.
Most importantly:
Strictly set stop loss!
Strictly set stop loss!
Strictly set stop loss!
Don't get too emotional! Don't get too emotional! Don't get too emotional!
This strategy is a counter-trend trading strategy. It is unrelated to price action theory; of course, you could say that the wedge-shaped bull flag that emerges in the end is this kind of divergence.
If you are considering adopting this trading system, then conducting a comprehensive market test is undoubtedly an essential step.
Through testing, you can find the trading varieties that best fit this system, ensuring maximum effectiveness of the system.
Only after fully understanding and preparing can you participate in actual trading, which is a wise move to be responsible for your funds.
There is a saying in the market: buy spot in a bull market, and trade contracts in a bear market.
But I love to trade, enjoying the thrill of quick entries and exits.
Comment 168 brings learning to short-term trading systems.
#币安ME开盘 #加密市场回调 #币安MOVE开盘
$ME $XRP $MOVE
