The bulls are dead, be wary of the possible bullish behavior of BTC 7900, and there is still a high probability of being bearish
Today I would like to talk to you about the relationship between trading indicators and signals. We usually use many kinds of "magic indicators" when we watch the market, such as the MA and EMA of the moving average system, and the RSI that shows the strength of long and short. Gold MACD, Position marking positions, and Bollinger bands, etc., to a certain extent, these indicators will help us judge whether our views are supported. For example, if you want to go short now, and then you find that the price is just hit by MA120 through observation indicators. The suppression of short positions has increased significantly, RSI also has a strong performance of short positions, MACD dead cross, etc. are conducive to the performance of short positions, which further strengthens your short-selling point of view. OK, now you are just waiting for the price to reach this area, and you will Stepping in on an empty order, looks good, doesn't it? But if I ask you a question, you may be fooled, "What price do you want to enter? Where is the stop loss? Where is the stop profit?".
You may not be able to answer, because "short selling" is just a point of view, and all indicator judgments are just for you to prove: Is your point of view correct? But just having an opinion is not enough for you to enter the market, because you don't even know at what price you want to enter the market? 8000? 8500? Or short in a certain range? Don’t know where to stop loss (stop loss at 100 pips? How much can you lose? Does it really work?) Don’t know where to stop profit? (How much money can you make?) I don’t know these things, and it’s useless to have opinions, so what you need is a key and clear signal, something that can tell you these things, it’s more like a signpost, a beacon , tell you what to do under what circumstances to trade, where to take profit and where to stop loss, this is the trading signal.
In my trading system, trading signals are a very important part. Specifically, it includes but is not limited to: Pinbar, InsideBar, engulfing, double K, FAKEY, double top and double bottom, supply and demand, they can clearly give me The entry and exit points of the transaction, if you are interested in this, you can check out the video I made today:https://www.bilibili.com/video/av73109855, which talks about the rules of using Pinbar.
In the early morning of the 23rd, BTC fell below the 8250 support area in heavy volume. As of the close at 8:00, the price closed at 8094. The current price is at the neckline of the bottom W of the rising band, testing the support at this position, and the triangle at the daily level converges, indicating that the market is about to bring From the perspective of past history, it is obvious that the large-scale unilateral movement is a bearish background. We consider the continuation of the trend more, so at a large level, we are more inclined to the continuation of the bearish position.
For the 4-hour level, it operates in a wide range of shocks. It is worth noting that the counterattack of the bulls was denied by the bears and at the same time formed an M top in the middle and upper part of the range. The confirmation of the M top means that it is very important for the market to return to this area in a short time. Difficult, especially the large-level M top, so our view on BTC is more inclined to short, and as mentioned at the beginning of the article, since it is decided to short, then "where to short?" is very important.
It can be seen from the above figure that a key W bottom was formed on the 18th-20th. After breaking through, it is currently stepping back on the neckline 8084-8095. This position is also the 618 callback level of the rising band. This position is a potential support level. But what we need to look for is the opportunity to sell short, so we look upwards, and we can find the upper red area structure, about 8200-8250, which is the neckline of the upper M top, and it is also a hold-up position for many buyers. Coming back here again is a good short position.
The one-hour level can give us a more accurate entry position. The first short position increase position is at 8204, and the second position is at 8286. Both are high profit-loss ratio trading plans worth shorting.
ETH
After the rising channel was broken, it is currently running in the descending channel, you can consider shorting along the upper edge, the space below is still relatively large, the key pressure is 175-179, and the key support is 165.53
EOS
EOS recommends waiting and watching, converging at the end, tending to converge and break through and continue to break down, you can consider a callback to short.
