I believe everyone has been confused about the market in October. Whether to go long or short, there are currently two factions competing against each other.
Next, I will analyze for you that the previous big drop caused panic among many people, and from the weekly and monthly lines, the previous market trend was indeed downward. However, careful people will find that the market is gradually adjusting. To put it simply, the big market trend is upward, but the big market trend includes small market trends at all levels, and the fluctuation amplitude of small market trends is particularly large.
Due to the above reasons, many people will make mistakes in market judgment and suffer troubles, resulting in losses in October transactions.
Someone will surely ask how we can avoid this and trade more safely?
Next, I will teach you two solutions:
Take BTC as an example
1. Short-term (suitable for those who are trading all day long and have a small capital system or a heavy position)
First, you need to be familiar with the price of BTC and think about what price will put great pressure on BTC to rise, such as 65,000 and 68,000. These prices are the prices with the greatest pressure on BTC. Secondly, observe the previous low of BTC. Take the 1-hour line as an example for the short-term market. For example, if the previous low is 62,600, then you should set the price of the bottom next time to 62,700-62,800, and the stop loss is 62,600. For the short-term level, do not talk about the pattern, just look at the previous high. If the previous high was 64,400, then the current round of market will directly stop at 64,000. Even if there is more rise, it is not what we should eat. (Short-term trading should adhere to the principle of short-term trading)
2. Long-term (suitable for those with large capital system, little time and light positions)
Same as the short-term method, but the level needs to be based on 1 day
The previous low of BTC in the 1-day market is 52500-55500-57500-60000. At present, the previous low of BTC is rising, basically with a price range of about 2500. The stop loss is determined by the leverage and position size. Whether to use the previous low as the stop loss or the current opening price within 5-20% range depends on personal tolerance.
For the current contract skills above, I still recommend spot trading, at least you don’t have to worry about being stuck.
—————————————————————————
In addition, short-term trading is available at present, but the stop loss opening price must be set well. (The general direction is still upward)
My personal analysis is why the large-scale trend is upward while the selling pressure at the small level is so great. In fact, it is all a wash-out prepared for the big bulls, to wash out the high-leverage and heavy positions and to reduce the phenomenon of overtaking.
Note: I am willing to communicate analysis and share market information with you. Of course, if you have something to share, I hope you can give some convincing reasons.
Attached figure: Profit and loss data for the past seven days
I hope this sharing can be helpful to everyone!
