Relationship between trendline and StochRSI

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I think that everything used in chart analysis should be objective so that everyone can understand it.

If not, I think that if we start complaining about the different interpretations used in chart analysis, the essence may be damaged.

Therefore, I am trying to present a method that anyone can understand and draw in the same way.

In that sense, I have talked about the method of drawing trendlines several times.

Today, I will explain additional parts that were not covered in the previous drawing methods.

To set it like the StochRSI indicator on this chart,
- Source value: ohlc4
- Setting value: 14, 7, 3, 3 (RSI, Stoch, K, D)
You can set it like this.

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A trend line is literally a line drawn to find out the trend.

It can also be used to predict how the current trend will change in the future.

However, since a trend line is drawn for chart analysis, what we need to draw importantly is the support and resistance points on the 1M, 1W, and 1D charts.

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The trend line currently drawn is as follows.

Trend line (1): Trend line between lows drawn on 1W chart
Trend line (2), (6): Trend line between lows drawn on 1D chart
Trend line (3), (4): Trend line between highs drawn on 1D chart
Trend line (5): Trend line drawn on 1M chart

Therefore, in order to continue the uptrend in the medium to long term, the price should be maintained above trend line (1).

Similarly, in order to continue the uptrend in the long term, the price should be maintained above trend line (5).

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The trend line is drawn by connecting the points between the highs or lows of the StochRSI indicator.

The StochRSI indicator creates waves in any case.

However, when creating waves, you should consider that the points necessary for drawing the trend line have been formed by touching the overbought and oversold areas and draw them.

Therefore, the points of the A and B sections of the StochRSI indicator are ambiguous points for drawing trend lines.

The solution to these points is the same as the trend line drawn above.

That is, the trend line is operated by connecting the points of the A section or the B section based on the last point created by touching the overbought or oversold section.

At this time, the important thing is that it must have escaped the overbought or oversold section.

The trend line (3) and trend line (4) drawn in this way form an expansion channel.

Therefore, once the decline begins, you can see that there is a possibility of a large decline.

However, as I mentioned earlier, the trend line was drawn to analyze the chart.

Therefore, you need to check the importance of the support and resistance points drawn in the area to see if it will actually lead to a decline.

Currently, the important support and resistance range from a short-term perspective is 76322.42-78595.86.

And, from a medium- to long-term perspective, the important support and resistance range is 69000-73499.86.

Therefore, even if it falls below trend line (4) and shows a large decline, it is expected that it will not be easy to touch trend line (3).

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Trend line (2) and trend line (6) are trend lines drawn between low points on the 1D chart.

Therefore, even if it falls, it is highly likely that the area around trend line (6) will be the maximum.

In other words, even if the decline begins, it is highly likely that it will re-confirm the support around 76322.42-78595.86.

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In any case, this volatility period ended without any significant movement.

The next volatility period is around April 25-29.

Since the StochRSI indicator is clearly showing a downward trend in the overbought zone, the key is whether there is support around 83423.84-84591.59.

If the price is maintained above the 1D chart, there is a high possibility of maintaining a short-term uptrend.

However, from a trading perspective, it should show support near the HA-Low indicator on the 1D chart to be a trading period.

Therefore, whether there is support near 89294.25 is important.

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Therefore, we are troubled.

Should we buy when it is supported in the current zone, 83423.84-84591.59, or should we buy when it is supported near 89294.25?

If the StochRSI indicator rises above the 50 point, it is better to focus on finding a time to sell, and if it falls below the 50 point, it is better to focus on finding a time to buy.

If you look at the chart again with this information, you can decide that it is better to wait a little longer rather than proceed with the current transaction.

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In the previous idea, I said that if it rises to around 89294.25, there will be a psychological feeling that it will rise further, and you will try to make a breakout trade.

At this time, what we should be interested in is whether the trend line between the lows and the trend line between the highs are formed in the same direction.

And, whether the StochRSI indicator shows an upward trend below the 50 point.

If it does not show such a movement, it is highly likely that it will shake up and down with a large fluctuation range.

Therefore, it is absolutely necessary to check whether it is supported near 89294.25.

Checking support and resistance is a tedious and difficult task.

Checking support and resistance requires checking the movement for at least 1-3 days.

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The fact that the HA-Low indicator was created means that it rose from the low point range.

Since it has currently fallen below the HA-Low indicator, it can be interpreted that it has fallen back to the low point.

Therefore, in order for an uptrend to begin, the trading volume must increase when confirming support near the HA-Low indicator.

If the trading volume does not increase and it rises, it may not rise much and turn into a downtrend, so you should think about a countermeasure for this.

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Thank you for reading to the end.
I hope you have a successful transaction.

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