Basic trading framework for beginners (2)
1. Price trend judgment
I personally think price trends are like "stacking boxes"
📈The upward trend is unilateral rise - box shock - unilateral rise
📉Downward trend is unilateral decline - box shock - unilateral decline
So when you are in a downtrend, how do you think the downtrend has reversed?
That is - "Generate a new cabinet with a support area higher than the old cabinet in front"
What if the uptrend reverses?
That is - "Producing a new cabinet with a lower resistance area than the old cabinet in front"
Take Figure 1⃣️ as an example. If BTC wants to rebound in the short term, it needs to break through 43300 and stand firmly above it, because this is the prerequisite for "generating a new box with a support area higher than the previous old box."
Summary: The "box" is the price balance between buyers and sellers. A breakthrough in the box (up or down) is the price imbalance between buyers and sellers. The entire market cycles between "finding balance" and "breaking balance", thus forming a cycle. The market of sex: you can come down as you go up, and you can go up as you go down.
Only extract valuable information and share useful knowledge｜Yu Sanshui🎣
