Bitcoin trading technique

Bitcoin Trading Technical Analysis (Beginner) Trading based on trend line
Want to invest in Bitcoin, but don't know how to get started? I will share with you my experience and lessons in the Bitcoin trading market for the past 2 years. If you don't have basic market analysis knowledge, it will be very bad to start operating Bitcoin. I suggest to start with 1% of the investment funds that you can afford, and then increase the chips after at least 50 transactions. First you need to master and understand Bitcoin Trading Technical Analysis (Beginner).

Now that we understand the most basic concepts, we can start using these tools to start trading. In order to make the trading method easier to understand, we will introduce it in two parts: rebound and breakthrough.

Rebound
The first method of operation is to use price rebound to operate when it touches the support and resistance levels.

The mistake that many small retail investors often make is to hang the purchase order directly on the support and resistance level and wait for the transaction. This kind of operation is actually assuming that the support and resistance levels will hold on when the price has not yet reached that point, and the risk is high.

Why do we generally not set the price on the trend line? The price on the trend line is the theoretical value. When we use the rebound to operate, we need to first determine that the support and resistance levels have been held. Therefore, we will wait for the price to rebound first, and then operate, instead of taking action when the rebound has not yet begun, in order to avoid the fierce price changes leading through the support and resistance. You will be hurt if you buy before the big sell-off and before the big sell-off.

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breakthrough
In the real trading market, because people always jump in to buy or feel that they have earned enough to leave, support and resistance are often broken because of a large number of buys and sells.

Rough practice

If there is an explosive ups and downs in the market, the easiest way is to operate immediately if the price breaks through the support or resistance. The key words here are powerful, and we need to make sure that the price does offset the channel. The method of judging can be that in a few time periods, the price gradually moves away from the support and resistance levels, and the head does not return. When we think that the price has started an explosive break, set the order and set the stop loss line as shown below:

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The price did not return to the support level, this time immediately sell the order, and set a stop loss line above the support level, if the price suddenly rises again, we will buy back the stop loss line.

Conservative approach

Imagine a scenario where you decide to buy a BTC for a long line and hope it will rise after the support level rebounds. After a while, the support for the sad reminder has been broken. Now that you are in the state of losing money, the value of BTC in your account is constantly decreasing. Will you:

Accept this failure, sell all, make a break
Or, always hold, expect the price to rise again
If you choose the second method, this is the conservative approach. The point to be explained is that holding a trade that has already lost money is on the opposite side of the trend. Once there are some sell orders under the support level, the market psychology will be affected. After the price pulls back, people can't hold back. A large number of sells, forming resistance to the rise, the original support level has become the resistance level of the downtrend. This phenomenon is the main reason why the support position will turn into resistance once it breaks through.

Using this phenomenon, we are best to wait patiently, not to sell when the sell order has just appeared, but to wait for the first pullback and set the price between the downside and the support. At the same time, we must set the stop loss. If the support level is not broken because of the panic sell order, we will buy it back at the stop loss.