How to identify a short-term trend?
I was bored, so I happened to use this afternoon’s $BTC trend at home to do a five-minute trend identification method.
Although the example chart is for five minutes, because this trend is very classic, it is also applicable to large levels.
The first step is to find an interval. In Figure 1, we regard the decline of BTC in the morning as a range.
The second step is to find the rebound high point and observe whether there will be a higher point.
The third step is to observe the position of the small-level rebound high point. When the second rebound high point is lower than the first high point, we confirm that this is a downward trend, which can lead to a short entry near the second high point. . The magnitude of the rebound in the next three periods has continued to increase, which means that the trend has continued to strengthen.
The fourth step is to reach the interval boundary and the trend ends. In the face of a trend that is not more powerful, the range boundary usually means that a shock consolidation is needed to make a breakthrough. At this time, the winning rate of the order will be reduced, and the trend order should choose to take profit and leave the market.
😂What’s interesting is that because the K-line level I chose is too small, I drew the K-line while walking, and it really came out at the bottom)))
If the subsequent breakthrough of the range boundary means the beginning of a new trend, I will not go into details here.
