Trend lines are also lagging(?)Hello, traders.
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I think trend lines are drawn to find out the trend that appears when candles are formed.
Therefore, since they are drawn after candles are formed, they can be called lagging.
However, since there is a characteristic of moving along a trend that has been formed unless there is a special issue, chart analysis is done by referring to trend lines.
To draw trend lines, you need to understand the arrangement of candles.
If not, there is a high possibility that it will be a meaningless line, so you need to study candles in advance to draw trend lines.
The point to use as a reference when drawing trend lines may vary depending on your investment style.
When drawing a trend line, I draw it according to the following rules.
1. Connect the opening price of the falling candle among the price candles corresponding to the high point of the StochRSI indicator (indicated by the blue line)
2. Connect the low point of the price candles corresponding to the low point of the StochRSI indicator (indicated by the light green (#00FF00) line)
The setting values of the StochRSI indicator are 3, 3, 14, 7 (K, D, RSI, Stoch).
However, the source value is the value of the Heikin-Ashi candle (Open + Close) / 2.
The difference can be confirmed by the StochRSI indicator and the Stoch RSI indicator of the TS - BW indicator on the chart.
1. Use the high point formed when the StochRSI indicator rises above 80,
2. Use the low point formed when the StochRSI indicator falls below 20.
Exclude any low or high points formed other than these.
The trend line connecting the low points can be connected by connecting the low points of the price candles.
However, the trend line connecting the high points must connect the opening price of the falling candle among the price candles, so when the price candle where the high point of the StochRSI indicator is formed is an upward candle, the opening price of the first falling candle among the right candles is specified and used.
Therefore, since there is a difference between the StochRSI indicator of the TS -BW indicator and the general StochRSI indicator, it is recommended to use the StochRSI indicator formula of the TS - BW indicator if possible.
When the StochRSI indicator entered the oversold zone and formed two low points, the trend line was not drawn by connecting the two low points.
Therefore, the trend line is drawn as shown on the chart.
Both the most recently drawn trend lines (1) and (2) are down, so it seems likely that a change in trend will occur.
However, since it is virtually impossible to know with just the trend line, it is recommended to comprehensively evaluate by adding auxiliary indicators.
Therefore, it is recommended to refer to the BW indicator, which displays MACD, StochRSI, CCI, PVT, and SuperTrend indicators.
If the BW indicator is rising from the 0 point, it means that the trend is rising.
On the contrary, if it is falling from the 0 point, it means that the trend is falling.
Since the BW indicator is currently above the 0 point, we can see that the trend is rising.
Therefore, when looking at the trend line and the BW indicator comprehensively, we can respond by selling when it falls from the recently drawn trend lines (1) and (2).
However, since the BW indicator is in an upward trend, it is recommended to respond with a split sell rather than a 100% sell.
It is still difficult to determine the timing of trading with the trend line alone.
Therefore, it is recommended to select the timing of trading by indicating the support and resistance points.
In that sense, it is a good idea to add HA-Low, HA-High indicators and use them to select the trading period.
Even if you do not use HA-Low, HA-High indicators, you should draw support and resistance lines according to the arrangement of candles on the 1M, 1W, and 1D charts and mark them on the chart to select the trading period.
The good thing about using indicators that indicate support and resistance points is that the support and resistance points do not change depending on your psychological state.
When you start trading, your psychological state may become unstable due to price volatility, and if you are in an unstable psychological state, you may draw a line incorrectly, which may result in an unreliable line.
Have a good time.
Thank you.
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- Big picture
It is expected that a full-scale uptrend will begin when it rises above 29K.
The next expected range to touch is 81K-95K.
#BTCUSD 12M
1st: 44234.54
2nd: 61383.23
3rd: 89126.41
101875.70-106275.10 (overshooting)
4th: 13401.28
151166.97-157451.83 (overshooting)
5th: 178910.15
These are points that are likely to receive resistance in the future.
We need to check if these points can be broken upward.
We need to check the movement when this range is touched because it is thought that a new trend can be created in the overshooting range.
#BTCUSD 1M
If the major uptrend continues until 2025, it is expected to start forming a pull back pattern after rising to around 57014.33.
1st: 43833.05
2nd: 32992.55
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