Today we are going to talk about line drawing

Trading must follow the principle of consistent trading, and the same applies to line drawing. In short, the principle of consistency means that the line you draw needs to be consistent with everyone else's. If your line is different from the line drawn by others, then you will not be able to see the key position that others can see, so the principle of consistent line drawing is very important.

First, keep the chart above 250 candlesticks. I personally prefer to take about 400 candlesticks and draw the chart from top to bottom. Be sure to analyze the charts of different time dimensions.

I basically don’t look at the weekly-daily-4-hour-1-hour chart. The 15-minute chart has too much noise and the long and short positions are unpredictable. I only observe price behavior in special market conditions and positions.

I draw the line to include all prices (including shadows), and only take the left side instead of the right side.

For example, the following figure

Let me take BTC as an example. Let’s first draw the weekly line, which is the location of the most critical turning point.

Just mark the most critical corner position on the weekly line. You won’t need to use it for a long time if you draw it once. Next is the daily line.

When a line is pierced by the price entity more than 3 times, it means it is invalid, so I don’t draw it in the charts of the daily and 4-hour charts where the lows move down, except for some special key positions.

In the next 4 hours,

Then an hour

Then there is the method of drawing trend lines. Two contact points can draw a trend line. The more contact points there are, the more effective the trend line is. The effect of horizontal support and resistance is greater than that of trend lines. Trend lines are just a representation of the increase and decrease of high and low points, allowing you to feel the changes more intuitively. When we talk about the Dow 123 rule later, we will talk about trend lines in detail.

When drawing lines, sometimes a position needs to be extended forward. Positions with many contact points are more important as support and defense positions, especially where support and resistance are interchanged. It is best to mark them out.

Even if you have great skills in drawing lines, the price will not necessarily go to the point where you draw the line. It will only go near the support and resistance points you draw. Therefore, we often use an area to represent the pressure and support levels.

Then when you draw the trend line, support level, and resistance level, you can go long against the support and go short against the pressure. There is no need to explain the effective breakthrough and the stop loss. What is an effective breakthrough? It is called an effective breakthrough when 3 real K-lines stand above or below.

Finally, you also need to follow aesthetics when drawing. You can't draw a messy picture without any aesthetic feeling. If there are many overlapping points in a picture, you should delete those repeated points to make the chart clearer. If the picture you draw is messy and makes you dizzy, then you need to practice drawing more.