Entry Methods

Using Bitcoin as an example

1. Identify the Trend

As a regular technical trader, a daily chart is generally sufficient (value investors can use weekly or monthly charts)

Daily Chart Period

Undoubtedly an uptrend; the highs and lows are moving up

Identify supply and demand

Supply Zone Previous High 73650

Demand Zone Previous Low 66822.5

4-Hour Chart Period

Undoubtedly an uptrend; the highs and lows are moving up

Supply Zone Previous High 77179.1

Demand Zone Previous Low 75714.2

1-Hour Chart Period

Supply Zone Previous High 81568

Demand Zone Previous Low 75714.2

Undoubtedly an uptrend; the highs and lows are moving up

15-Minute Chart Period

After experiencing a divergence, the new low compared to before is 78500

Supply Zone Previous High 81848

Demand Zone Previous Low 78500

How to select high and low points: use the theory of 'Chan' to distinguish segments. The connecting line between two adjacent top formations and bottom formations is called a segment. There must be at least one independent candlestick between the top and bottom formations (this candlestick does not contain the previous and the next).

The Key Comes

1. Aggressive Strategy (Strict Stop-Loss Control)

The daily, 4-hour, and 1-hour trends are all upward, only the 15-minute chart shows divergence, so look for points of divergence turning into consistency on the 15-minute chart to go long. Since it's a 15-minute entry, strictly set the stop-loss at the turning key point of the 15-minute trend, which means it cannot break 78500, the stop-loss is below 78500.

2. Conservative Strategy (Entry at Resonance Points)

What does this mean? Find overlapping areas in 4 different periods to enter long.

List all previous highs and lows and let the numbers speak (previous highs and lows are the most competitive areas)

81568

78500

77179.1

75714.2 (same point for 1-hour and 4-hour)

73650

So the result is either focus on the resonance point 75714.2 to find a turning point to go long

Or enter long when the candlestick breaks into the area between 73650-75714.2

Whether it's an aggressive strategy or a conservative strategy, the success rate depends on the strength of the candlestick at the turning point. If it's an easily visible strong bullish candlestick, then you must enter. If wrong, just take the stop-loss; if right, you get a trade with a very high risk-reward ratio.

Personal opinion, for reference only. If you have any questions, feel free to leave a message.