Meaning of buying when falling and selling when rising
Updated
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#BTC.D 1D
#USDT.D 1D
#BTCUSDT 1D
I think the Renko chart is a chart that can somewhat complement fakes and whipsaws.
This chart allows you to see at a glance which section the trend or current price position is contained in.
Looking at this chart, I think it can be broadly divided into two sections.
The current price is in the 36000-43500 range.
In that range, support and resistance areas are formed between 39000 and 40500.
Therefore, if it fails to rise above 43500, I think there is a possibility of touching the 39000-40500 range.
For signs of decline to appear, it must fall below 42000.
Additionally, the upper line of the Price Channel indicator will be created.
BTC dominance is falling to around 50.
Accordingly, the possibility of fakes or whipsaws occurring in BTC volatility is increasing.
Therefore, I think you should not react sensitively to BTC movements until there is a clear movement.
A decline in BTC dominance means that funds are moving away from BTC and towards altcoins.
Therefore, if you react sensitively to BTC movements, you may proceed with trading in the wrong direction, so caution is required.
#USDT 1D
In order for the coin market to turn into a downward trend, it must be accompanied by an outflow of funds.
Otherwise, I don't think there could ever be a downward trend.
The representative stablecoin for fund inflow and outflow in the coin market is USDT.
Therefore, if the USDT chart begins to show a gap decline, then I think there will be a higher possibility that the coin market will turn into a downward trend.
However, since we need to check the correlation between the movement of USDT dominance and BTC dominance, if there are signs of a downward trend, then we will tell you again.
As it fails to renew the high point on the general candle chart and touches the 42K range, it seems that talk of a gradual decline is starting to emerge.
If the price starts to fall, it is expected that more funds will flow into the coin market, leading to more purchases.
If you look at the current USDT chart, you can see that funds are continuously flowing into the coin market due to the rising gap.
Therefore, now is the time to buy.
It is possible to sell some of your coins (tokens) in installments to prevent losses, but if the price falls, you must repurchase them again.
Because the gap between the short-term moving average line and the mid- to long-term moving average line is large, fatigue from the upward move is high.
So, the market is naturally trying to correct prices.
However, if you reduce the number of coins (tokens) you hold by selling in a situation where funds are continuously flowing into the coin market, you may regret it a lot in the future, so you need to be careful in responding.
If you currently have some cash reserves, you will have a good opportunity to buy more when a price correction occurs.
If you think your cash holdings are low, you should secure cash by selling the coins (tokens) you currently hold that have either converted to a loss or are likely to record a loss.
When a price adjustment occurs with the cash secured in this way, the average purchase price must be lowered and the number of coins (tokens) held must be increased by repurchasing.
BTC's 43160-43823.59 range is a psychological split selling range.
Therefore, in order to reduce the upward fatigue that has risen to the 43160-43823.59 range, it is recommended to secure profits by selling in installments.
In that sense, split selling when it falls below 42053.66 can be considered a stop loss.
There is a big difference between split selling when the price rises to the 43160-43823.59 range and can no longer reach the high point, and split selling at the point where the downtrend is likely to begin.
First of all, there is a big psychological difference.
When the price rises and you can no longer reach the high point, you sell it in installments, and you feel psychologically relieved that you have succeeded.
This relief gives you the power to buy back again when the price falls, creating a pull back pattern.
However, if you split and sell with a stop loss, even if the price falls and shows a pull-back pattern, you will hesitate to repurchase due to psychological anxiety about further decline.
In addition, since the stop loss point and the area that creates the pull back pattern are likely to be close, you will be more hesitant to repurchase.
That location is the current location, 42053.66-42278.03 section.
If it falls from this range, it will hit the support and resistance range of 39845.44-42053.66.
However, the important support and resistance point for this decline is the 41350.0 point.
Therefore, there is a high possibility that the price will shake up and down around the 41350.0 point.
Since this fluctuation is likely to lead to an upward trend during the volatility period around January 1-5, choosing to sell the split at the current price can be considered risky.
You should buy when prices fall and sell when prices rise.
This is one of the most basic trading strategies in trading.
However, these basic trading strategies are not followed.
Buying when the price is falling means buying when the price is falling and moving sideways within a certain range or showing support at a certain point.
Therefore, through chart analysis, you must select the corresponding support and resistance points or sections and check the price movement.
Selling when the price rises means selling when the price rises and can no longer reach the high point or shows sideways movements within a certain range.
You may think that chart analysis is a very important part of trading, but this is not true.
Chart analysis is just one part of trading, the most important thing is trading strategy.
This is because the success or failure of a trade depends on how you create your trading strategy.
trading strategy
1. Investment period
2. Investment size
3. Trading method and profit realization method
You can think about it by dividing it into parts 1-3 above.
Step 3 involves creating a trading strategy by checking the information learned from chart analysis, that is, price movements at support and resistance points or sections.
This means that steps 1 and 2 are very important in creating an actual trading strategy.
The first thing you need to do is decide which coin (token) to invest in, for what period of time, and at what size of investment.
To do this, you need to step away from the chart for a moment and check the ecosystem of the coin (token) you want to trade or check aspects such as community scalability.
Next, analyze the chart to see how support and resistance points or zones are formed at the current price position.
You must create a trading strategy based on the confirmed information and proceed with trading.
However, as you invest all your time in chart analysis and create all kinds of scenarios in your head with that information, you add your own subjective thoughts and psychological factors, which causes trading to proceed in the wrong direction.
Therefore, chart analysis should be done with as objective information as possible.
In order to exclude your subjective thoughts and psychological factors from this objective information, appropriate indicators must be set in the chart.
Otherwise, your subjective thoughts and psychological factors will eventually be included in the chart analysis without your knowledge.
I believe trading should be done by trend following.
However, trends may vary depending on your perspective.
Therefore, there is no need to criticize or call out anyone else's thoughts for being different from mine.
This is because the investment period is different depending on your perspective.
One thing I would like to say here is that when looking at trends, if possible, you should first check the trend in a time frame longer than a 1D chart.
If you always trade with the trend of the time frame chart below the 1D chart, there is a high possibility of making a mistake due to fake or whipsaw.
Therefore, before starting a new trade, you should check the trends on the 1M, 1W, 1D charts and mark the support and resistance points on these time frame charts on the charts.
Then, by looking at the time frame chart that you mainly view and trade, check the movement at the corresponding support and resistance points and proceed with the transaction, you will be able to reduce the number of times you are caught by fakes or whipsaws.
--------------------------------------------------
- The big picture
The full-fledged upward trend is expected to begin when the price rises above 29K.
This is the section expected to be touched in the next bull market, 81K-95K.
-------------------------------------------------- -------------------------------------------
** All explanations are for reference only and do not guarantee profit or loss in investment.
** Trading volume is displayed as a candle body based on 10EMA.
How to display (in order from darkest to darkest)
More than 3 times the trading volume of 10EMA > 2.5 times > 2.0 times > 1.25 times > Trading volume below 10EMA
** Even if you know other people’s know-how, it takes a considerable amount of time to make it your own.
** This chart was created using my know-how.
---------------------------------
If you "Follow" us, you can always get new information quickly.
Please also click “Boost”.
Have a good day.
-------------------------------------
#BTC.D 1D
#USDT.D 1D
#BTCUSDT 1D
I think the Renko chart is a chart that can somewhat complement fakes and whipsaws.
This chart allows you to see at a glance which section the trend or current price position is contained in.
Looking at this chart, I think it can be broadly divided into two sections.
The current price is in the 36000-43500 range.
In that range, support and resistance areas are formed between 39000 and 40500.
Therefore, if it fails to rise above 43500, I think there is a possibility of touching the 39000-40500 range.
For signs of decline to appear, it must fall below 42000.
Additionally, the upper line of the Price Channel indicator will be created.
BTC dominance is falling to around 50.
Accordingly, the possibility of fakes or whipsaws occurring in BTC volatility is increasing.
Therefore, I think you should not react sensitively to BTC movements until there is a clear movement.
A decline in BTC dominance means that funds are moving away from BTC and towards altcoins.
Therefore, if you react sensitively to BTC movements, you may proceed with trading in the wrong direction, so caution is required.
#USDT 1D
In order for the coin market to turn into a downward trend, it must be accompanied by an outflow of funds.
Otherwise, I don't think there could ever be a downward trend.
The representative stablecoin for fund inflow and outflow in the coin market is USDT.
Therefore, if the USDT chart begins to show a gap decline, then I think there will be a higher possibility that the coin market will turn into a downward trend.
However, since we need to check the correlation between the movement of USDT dominance and BTC dominance, if there are signs of a downward trend, then we will tell you again.
As it fails to renew the high point on the general candle chart and touches the 42K range, it seems that talk of a gradual decline is starting to emerge.
If the price starts to fall, it is expected that more funds will flow into the coin market, leading to more purchases.
If you look at the current USDT chart, you can see that funds are continuously flowing into the coin market due to the rising gap.
Therefore, now is the time to buy.
It is possible to sell some of your coins (tokens) in installments to prevent losses, but if the price falls, you must repurchase them again.
Because the gap between the short-term moving average line and the mid- to long-term moving average line is large, fatigue from the upward move is high.
So, the market is naturally trying to correct prices.
However, if you reduce the number of coins (tokens) you hold by selling in a situation where funds are continuously flowing into the coin market, you may regret it a lot in the future, so you need to be careful in responding.
If you currently have some cash reserves, you will have a good opportunity to buy more when a price correction occurs.
If you think your cash holdings are low, you should secure cash by selling the coins (tokens) you currently hold that have either converted to a loss or are likely to record a loss.
When a price adjustment occurs with the cash secured in this way, the average purchase price must be lowered and the number of coins (tokens) held must be increased by repurchasing.
BTC's 43160-43823.59 range is a psychological split selling range.
Therefore, in order to reduce the upward fatigue that has risen to the 43160-43823.59 range, it is recommended to secure profits by selling in installments.
In that sense, split selling when it falls below 42053.66 can be considered a stop loss.
There is a big difference between split selling when the price rises to the 43160-43823.59 range and can no longer reach the high point, and split selling at the point where the downtrend is likely to begin.
First of all, there is a big psychological difference.
When the price rises and you can no longer reach the high point, you sell it in installments, and you feel psychologically relieved that you have succeeded.
This relief gives you the power to buy back again when the price falls, creating a pull back pattern.
However, if you split and sell with a stop loss, even if the price falls and shows a pull-back pattern, you will hesitate to repurchase due to psychological anxiety about further decline.
In addition, since the stop loss point and the area that creates the pull back pattern are likely to be close, you will be more hesitant to repurchase.
That location is the current location, 42053.66-42278.03 section.
If it falls from this range, it will hit the support and resistance range of 39845.44-42053.66.
However, the important support and resistance point for this decline is the 41350.0 point.
Therefore, there is a high possibility that the price will shake up and down around the 41350.0 point.
Since this fluctuation is likely to lead to an upward trend during the volatility period around January 1-5, choosing to sell the split at the current price can be considered risky.
You should buy when prices fall and sell when prices rise.
This is one of the most basic trading strategies in trading.
However, these basic trading strategies are not followed.
Buying when the price is falling means buying when the price is falling and moving sideways within a certain range or showing support at a certain point.
Therefore, through chart analysis, you must select the corresponding support and resistance points or sections and check the price movement.
Selling when the price rises means selling when the price rises and can no longer reach the high point or shows sideways movements within a certain range.
You may think that chart analysis is a very important part of trading, but this is not true.
Chart analysis is just one part of trading, the most important thing is trading strategy.
This is because the success or failure of a trade depends on how you create your trading strategy.
trading strategy
1. Investment period
2. Investment size
3. Trading method and profit realization method
You can think about it by dividing it into parts 1-3 above.
Step 3 involves creating a trading strategy by checking the information learned from chart analysis, that is, price movements at support and resistance points or sections.
This means that steps 1 and 2 are very important in creating an actual trading strategy.
The first thing you need to do is decide which coin (token) to invest in, for what period of time, and at what size of investment.
To do this, you need to step away from the chart for a moment and check the ecosystem of the coin (token) you want to trade or check aspects such as community scalability.
Next, analyze the chart to see how support and resistance points or zones are formed at the current price position.
You must create a trading strategy based on the confirmed information and proceed with trading.
However, as you invest all your time in chart analysis and create all kinds of scenarios in your head with that information, you add your own subjective thoughts and psychological factors, which causes trading to proceed in the wrong direction.
Therefore, chart analysis should be done with as objective information as possible.
In order to exclude your subjective thoughts and psychological factors from this objective information, appropriate indicators must be set in the chart.
Otherwise, your subjective thoughts and psychological factors will eventually be included in the chart analysis without your knowledge.
I believe trading should be done by trend following.
However, trends may vary depending on your perspective.
Therefore, there is no need to criticize or call out anyone else's thoughts for being different from mine.
This is because the investment period is different depending on your perspective.
One thing I would like to say here is that when looking at trends, if possible, you should first check the trend in a time frame longer than a 1D chart.
If you always trade with the trend of the time frame chart below the 1D chart, there is a high possibility of making a mistake due to fake or whipsaw.
Therefore, before starting a new trade, you should check the trends on the 1M, 1W, 1D charts and mark the support and resistance points on these time frame charts on the charts.
Then, by looking at the time frame chart that you mainly view and trade, check the movement at the corresponding support and resistance points and proceed with the transaction, you will be able to reduce the number of times you are caught by fakes or whipsaws.
--------------------------------------------------
- The big picture
The full-fledged upward trend is expected to begin when the price rises above 29K.
This is the section expected to be touched in the next bull market, 81K-95K.
-------------------------------------------------- -------------------------------------------
** All explanations are for reference only and do not guarantee profit or loss in investment.
** Trading volume is displayed as a candle body based on 10EMA.
How to display (in order from darkest to darkest)
More than 3 times the trading volume of 10EMA > 2.5 times > 2.0 times > 1.25 times > Trading volume below 10EMA
** Even if you know other people’s know-how, it takes a considerable amount of time to make it your own.
** This chart was created using my know-how.
---------------------------------
Note
There are a lot of typos in the article, so I don't know if it was translated properly.In the future, I will write an article, check it, and publish it.
Have a great year-end and a happy new year.
Note
Before volatility occurs, you must select the trend, support and resistance points on the chart and create a trading strategy.If you look at what I'm saying, you can see that I've been talking about the current volatility before.
Therefore, if an appropriate trading strategy has been previously created, you can respond according to that trading strategy.
If you try to create a trading strategy while experiencing the current volatility, that is, a decline, it will be difficult to create a proper trading strategy because your subjective thoughts and psychology will come into play.
Therefore, you only need to check for support and resistance at selected support and resistance points before volatility occurs.
In any case, if you made a profit by splitting and selling around 43160.0-43823.59, the current movement is not very important.
Because if it falls further, you can just repurchase it.
If the average purchase price is close to the current price, you may be concerned if the price falls.
However, if you control your investment proportion well, this will not be a problem.
This is because you will eventually have an opportunity to lower the average purchase price.
If you buy right now and the price falls further, you don't have to worry too much.
However, if the investment proportion is high, there is bound to be concern.
In this way, we face the problem of how to determine the investment proportion, that is, the size of investment number 2 of the trading strategy I am talking about, depending on the current price position.
When you decide to invest in an item (coin, token), you must consider the investment period and investment size in advance.
You can then create a big-picture trading method and profit realization method and respond to price volatility by creating or modifying a detailed trading strategy.
If you are worried about whether or not the price will fall to the range you think, there is definitely a problem.
If you feel scared when you start or are about to start a trade, you should not actually proceed with the trade.
Investing is a psychological battle, so no matter how good the purchase price is, if your psychology is unstable, you can end the transaction in a wrong way.
Since the price is currently below 42053.66-42278.03, we need to see if it can rise quickly in the next candle.
If not, you can check if there is support around 41350.0.
If you do not receive support around 41350.0, check again to see if it is supported around 39845.44, which is the next support point.
And, if you see support from somewhere, then you can start buying in installments.
If you think it will drop to 40.5K, just wait until then.
What is important here is what investment proportion to use when buying or selling.
This trading strategy actually requires you to try many trades to find what works for you.
In my case, before I start trading, I think in advance about how many split purchases I will make and select support and resistance points accordingly.
And, I place a pre-order for purchase in advance.
So, even if prices fluctuate, you will be less psychologically affected.
The same goes for this case.
The 43160.0-43823.59 section is a psychological resistance section, and it is a split selling section where compensation for the increase so far must be received, so when resistance appears in this section, I split the sale.
Also, I set a reserve buy order at the 42278.03 and 41350.0 points that I mentioned as support and resistance points.
It has currently fallen below 42278.03, so it has been purchased.
If it falls below the 41350.0 point, I will buy again.
And I'll just wait.
If it falls below the 39845.44 point, there is a possibility of a downward trend, so at this time, you will check the movement and take a stop loss.
Otherwise, if it rises above the purchase price, we will report the movement at that time, calculate the purchase price, and sell it for the amount of the purchase principal.
In other words, if the purchase amount purchased at the 41350.0 point rises above 41350.0 and shows resistance, the price will be sold equal to the purchase amount.
And, if it rises above the 42278.03 point, it will also be sold for the amount purchased at the 42278.03 point to increase the number of coins equivalent to profit.
Ultimately, I think there will be a big increase in the BTC halving next year, so I am using a profit realization method that increases the number of coins (tokens) rather than the immediate cash profit.
If you need immediate cash returns, you can get cash returns.
If you think the current price is high, you cannot make any trades.
Therefore, there is no need to trade through this psychological state.
If you are thinking about an aggressive purchase, it is recommended to purchase at an amount that does not matter if the stock falls by more than -20%.
Buying such a small amount will serve as an intuitive indicator when the price falls and then rises.
This is because the movement of yields provided by the exchange will serve as such an indicator.
At the same time, you can continuously observe the movement around the support and resistance points you have selected.
Then, you will get a sense of selecting support and resistance points and a sense of checking whether support or resistance exists.
At the same time, whenever support appears, additional purchases are made aggressively.
As you become familiar with these trading practices and trading methods, you will become familiar with the sense of adjusting investment proportions according to split transactions.
When you first practice driving, you may experience sudden stops or sudden starts due to the lack of feeling in your feet or adjusting the pressure on the accelerator and brake.
Then, through many experiences, you finally find a feeling for your feet.
That's why you shouldn't rush until you find your trading sense.
If you rush and your losses increase or your psychological state continues to become unstable, you may end up leaving the investment market altogether.
I need to think carefully about why I am currently anxious or excited.
In most cases, people often feel anxious due to price volatility by setting a high investment proportion.
Therefore, you must first become familiar with adjusting your investment proportion.
Then, no matter how much the price falls by more than -20% or rises by more than +20%, psychological fluctuations will not occur.
Until that happens, you should practice trading with a low investment proportion.
Once you have a sense of the investment size, which is number 2 of the trading strategy, you can then draw up number 3, the trading method and profit realization method.
Note
#BTCUSDT 1DThe bottom line of the Price Channel indicator is drawn only through December 25th.
So, you can see that a bottom has not yet formed.
Therefore, you must be careful to shake until the bottom line is created.
#BTC.D
Again, since BTC dominance is approaching 50, the likelihood of fakes or whipsaws will increase in BTC.
Therefore, you should not be too sensitive to BTC movements.
The significant fluctuation range for BTC so far is the 39845.44-45135.66 range.
And, in the volatility period starting around January 1st, the range of change is in the range of 41350.0-46431.50.
Therefore, it is necessary to check whether the price is rising along the upward trend line.
Note
#BTCUSDT 1DThe bottom line of the Price Channel indicator has been created.
Accordingly, I think one more standard has been added.
The key is whether it can receive support and rise in the 41350.0-42278.03 range.
The next period of volatility is around January 1-5.
Therefore, the volatility period lasts up to December 31 - January 6.
At this time, the expected fluctuation range is 41350.0-46461.50.
If there is a deviation from this range of fluctuation, a trend is expected to form.
Accordingly, since the Price Channel indicator has begun to converge, it is necessary to check in which direction it deviates from the Price Channel indicator range of 41792.71-43837.34.
Note
#BTCUSDT.P 1DNote
(Coin Market Cap Chart)If you feel that the trend on the BTC chart is not moving as expected, you should first check the money flow in the coin market.
This is because, no matter how much a trend is formed on the chart, there is always a possibility that the chart trend will change depending on the flow of funds.
Currently, funds are continuously flowing into the coin market.
If a price correction occurs in this situation, it will be a good buying opportunity.
Therefore, I think it is not easy for a price adjustment to occur.
A price adjustment can only occur if someone starts selling in a big way, but I don't think there is any force to sell in a big way in the coin market where funds are continuously flowing in.
If a price adjustment occurs, you will use the method of printing and pressing through futures trading and buying coins in spot trading.
In any case, since individual investors have FOMO, I think such a method will not be easy.
Note
“It looks like it will fly. When will I buy it?”Most fundamentally, first check whether the candle on the 1D chart is a downward candle.
Breakout trading is a trading method that occurs when an important support and resistance area is broken upward, so if it is difficult to determine the importance of the support and resistance area, it is not recommended to be attempted.
In an upward trend or bull market, it is psychologically better to buy when the candle on the 1D chart is a downward candle rather than when it breaks through.
“It looks like it will go down. When should I sell?”
When the price rises or moves sharply but fails to reach a new high, you should start selling in installments.
If not, you should take a stop loss when the price falls below the support and resistance areas.
If you sell at the stop loss point, the next response is uncertain, so if possible, it is best to wait until the next wave.
The above is the most basic way to respond when trading.
Note
A movement in which BTC rises more than -10% or +10% in a day is not a movement that comes easily.Altcoins seem to occur more often than expected, but this is also not an easy movement.
Accordingly, efforts must be made to obtain good opportunities by purchasing when the price falls by more than -10% and selling when it rises by more than +10%.
To do this, specific gravity control is necessary.
This is because if you purchase too large a proportion, you may suffer from further declines.
When selling, you must also be careful because if you sell too much, you will be very disappointed if the stock rises further.
If so, the question is what the standard for the appropriate investment proportion is.
The appropriate investment proportion refers to the proportion at which cash will not be depleted even if purchases are made continuously.
Therefore, if the price rises after purchase, a trading strategy is needed to re-establish some of the cash by selling it in installments.
When selling, if possible, it is best to sell at a level that does not sell 100%.
However, if the purchase was made for day trading, it is recommended to sell 100% when the price rises to make a cash profit.
Unlike the stock market, the coin market allows purchases in decimal units.
Accordingly, if you sell 100% when an uptrend or bull market is in progress, you will end up buying at the highest point, so you need to be careful.
Therefore, unless it is day trading, selling 100% is not a good choice in the coin market.
Therefore, in conclusion, it is a good idea to gain an advantage in subsequent transactions by leaving a number of coins (tokens) equivalent to a certain level of profit.
Due to price volatility, you may take a stop loss or sell to realize profit.
Stop loss and take profit may seem the same in the sense of selling, but there is a big difference.
Taking profit involves selling when the price rises sharply or no longer reaches a high point.
Stop loss refers to a method of proceeding when it appears that a large loss will occur if the price falls any further.
Therefore, a big psychological difference occurs.
Therefore, when you make a stop loss, it is best to check the flow of one wave rather than trading right away, if possible.
Once you take profits and the price falls, you can buy from anywhere.
This is because you have that much psychological freedom.
Determining these things is not done through chart analysis.
Chart analysis simply gives you a point from which to make these decisions.
Therefore, what we need to practice the most is creating a trading strategy, which is what I mentioned above.
A trading strategy is your own know-how that can be created regardless of whether the price on the chart is high or low.
Therefore, even if the price is at a high point, trading is possible if you can create a trading strategy.
When creating a trading strategy, you are creating countermeasures to prevent losses.
This is because if a response plan to prevent losses is created, profits can be naturally made.
If you only focus on whether the price will rise or fall by analyzing charts every day, you may end up not being able to do anything or trading itself becomes burdensome due to fear of loss, so you must be careful because there is a possibility that you may end up leaving the investment market altogether.
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