A big Yang line brings thousands of troops to meet!!!
The big Yang line here does not mean that it must rise by 10 points or 20 points to be considered
Such a situation will appear less and less on mainstream currencies, and the effectiveness will be different at different levels.
To judge whether it is a big Yang line here, we can judge from two aspects:
The first is that as most of us think, through the increase of the K-line entity column and the increase in price, that is, the space, the increase is at least 5% or more, and the effect is stronger with the increase of long volume.
The second is the time filter. If the market has been maintaining an upward trend, and there are at least three or three K-lines that rise in sequence, then its effectiveness is equivalent to that of a big Yang line.
If it is combined with the trend line of Western technical analysis indicators, Bollinger support, MACD golden cross and other auxiliary indicators.
Then the tracking of trends and the prediction of market trends will be more accurate, and the probability of winning will be higher.
This is the purpose and application of our learning and mastering technical analysis.
It helps us make trading decisions with reason and evidence every time, in line with our actual situation.
Technical analysis cannot be 100% correct every time. There is no God in this world. We must have a clear understanding of this, and we cannot be either black or white.
This is why we must not only understand the market trend and make good preparations for trading, but also formulate effective trading strategies.
When we make the right judgment on the market trend, effective trading strategies are not only to help us make profits, but more importantly, they can help us avoid risks when there are low-probability events or unknown risks.
It can make us win more when we are right, and even if there are mistakes, it can reduce the cost of trial and error. This is the real value of trading strategies. (Strategies include position management, asset allocation, stop profit, stop loss, risk control, etc. at different trading levels)
In the face of the next violent bull market, I plan to ambush some tokens that are ready to explode, and also find some potential coins to get to the end of the year. Friends who like spot trading 👉 Main business Zhi Liao Xun, get my latest strategy and detailed points!
