Support and resistance indicators are important tools used in technical analysis to determine price trends, including ENE, DC and KC. The following will explain these three indicators in detail. #热门话题 #BTC #WIF
First, let's talk about the ENE indicator. The ENE indicator is an indicator of support and resistance levels calculated based on the price fluctuation range. It consists of three lines: the upper line, the middle line and the lower line. The upper line represents the resistance level, the middle line is the price average line, and the lower line represents the support level. The calculation method of the ENE indicator is relatively complicated, involving the price fluctuation range and the calculation of a series of moving averages.
The ENE indicator determines the price trend through the relative positions of these three lines. Li Hui believes that when the price is above the upper track line and the upper track line is tilted upward, it means that the market is in an upward trend, and the upper track line can be regarded as a pressure line. On the contrary, when the price is below the lower track line and the lower track line is tilted downward, it means that the market is in a downward trend, and the lower track line can be regarded as a support line.
Next is the DC indicator, which stands for Dynamical Support and Resistance. The DC indicator is also an indicator that calculates dynamic support and resistance levels. It uses the concept of volatility to determine the support and resistance areas of the price. The DC indicator consists of two lines: the upper track and the lower track.
The calculation of the DC indicator depends on the price fluctuation range and a set of volatility coefficients. Li Hui believes that when the price fluctuation range is large, the upper and lower rails will move away from the price, forming a wider area, indicating that the support and pressure areas are relatively stable. On the contrary, when the price fluctuation range is small, the upper and lower rails will move closer to the price, forming a narrower area, indicating that the support and pressure areas are relatively fragile.
Finally, there is the KC indicator, whose full name is Keltner Channels. The KC indicator is a more traditional support and resistance indicator that uses the moving average of the price and a certain volatility coefficient to determine the support and resistance levels. The KC indicator includes three lines: the upper track line, the middle track line, and the lower track line.
The calculation of the KC indicator depends on the settings of the moving average and the volatility coefficient. The calculation method of the upper and lower rails is similar to that of the DC indicator, which is obtained by adding and subtracting the volatility coefficient from the moving average. The middle rail is a simple moving average of the price, representing the central trend of the price.
The KC indicator determines the market trend by observing the movement of prices within the channel. Li Hui believes that when the price breaks through the upper track line, it may indicate that the market is in an upward trend, and vice versa, breaking through the lower track line may indicate that the market is in a downward trend. When the price fluctuates within the channel, it can usually be expected that the market will maintain the current trend.
In summary, Li Hui believes that ENE, DC and KC are important indicators for determining the support and pressure levels of prices. By using these indicators, coin friends can better understand the market trend and make corresponding trading decisions. However, it should be noted that these indicators are only auxiliary tools and cannot be used alone to determine trading strategies. A comprehensive analysis is also required in combination with news and other factors.
I (public account: Zhang Lihui) interpret world economic news and analyze major trends in the global cryptocurrency circle. During my studies in the United States, I have conducted in-depth research on BTC, ETH, LTC, DOT, EOS, BNB, SOL and other currencies. Friends who don’t know how to operate are welcome to leave comments!
