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Vegas Channel is a technical analysis tool based on the exponential moving average (EMA), which is mainly used to determine market trends and trading opportunities. (There are many EMA moving average combinations, but today we only talk about Vegas).

📌Origin of Vegas Channel:

It was originally proposed by a hedge fund manager named Vegas. The construction of the Vegas channel does not rely solely on subjective judgment. I believe everyone can solve the theoretical knowledge on Baidu and I will only talk about my own usage.

First of all, the parameters: 144-169 576-676. The four EMA moving averages form two channels.

Open the indicator settings of the trading interface, find EMA, and set the parameters.

🎈Vegas channel level promotion and confirmation:

📌We can see from the above picture that the 4-hour BTC trend is completely driven and confirmed around (144-169).

How to explain the push: Let’s look at the far left side. In the rising stage, the retracement confirmed the 144-169 channel, and there was an obvious price reaction. After the price broke the channel, every pullback to test the channel formed an effective resistance.

Definition: Judging from the 4-hour trend on the left, the current (144-169) channel can still be judged as resistance.

For any opening level of (576-676) that is not mentioned, the (576-679) channel is used as the final stop loss position. In plain words: as long as the price completely breaks through and closes above the (576-649) channel line, your order should be stopped in time, and re-observe before entering the market!

Only 4 hours? Not 1 hour? Wrong! ❎ #BTC

Let’s go back to the interpretation of level push: What we need to judge first is at which level the price of the currency is confirmed in this round of trend. See the picture below👇🏻👇🏻👇🏻

Definition of the above picture: Let me cut the time period to 1 hour later, and we can see that the trend in the picture is a trend verified by the dual channels (144-169, 576-679). However, in the right part of the picture, the trend is confirmed by the channel (576-679).

ps: If you are doing it at the 1-hour level, your perspective will be on the (576-679) channel!

📢Here is a fatal mistake❎: When you look at the 1-hour chart to trade, do not switch to the 4-hour or larger time period to look for resistance when the price breaks through. This will cause you to have the intention to resist the order invisibly!

There are thousands of cases. As long as you have set the indicator parameters, you can track the trend of the individual coins you want.

Some friends also asked me whether it is possible to use Vegas Channel to trade in 15 minutes?

The answer is yes✅But you also need to understand that since you are trading at the 15-minute time level, your stop-profit and stop-loss should also be set at the 15-minute level. ⚠️And the smaller the level, the lower the error tolerance.

Looking at the current 15-minute market, I don’t see any trend confirmation in 15 minutes. The only subjective thing is that the current (144-169) channel has a small double bottom, that’s all.

Below 👇🏻👇🏻👇🏻 is a case interpretation of a 15-minute Vegas double-channel driven decline.

If you follow your trading system and the Vegas channel, there is no chance to enter the market until the price breaks through the channel at the level you are looking at. However, many traders cannot stick to their trading system.

I always think that the price has fallen so much, I just don’t believe it, I want to buy at the bottom, I want to buy at the lowest price, thus forming a vicious cycle.

Every transaction requires: trend identification, confirmation of support and resistance, trading decision (aggressive or conservative), stop loss and take profit.

Insist on using your own trading system to make more than 20 transactions, and then calculate the profit and loss ratio and winning rate of your trading system.

Instead of using EMA for three orders, Bollinger for five orders, harmonics for seven orders, and lines for five orders, you will eventually think that trading is based on guessing rather than cognitive judgment.

Conclusion: Trading technology does not make us 100% profitable, but allows us to use tools to judge the market and make reasonable arrangements for opening and closing positions.

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