Friends often ask, what should I do when the pressure level is reached? I am trapped and I want to chase back. I am afraid of retracement after making a profit and I want to hedge. Let me tell you about the four-hour Ethereum market. As shown in the figure, the four-hour Ethereum market:
First of all, I want to emphasize that you should never deliberately lock in a hedge order, and try not to have a hedge order. In the process of every transaction, technology is the support, and psychological factors are the core of a transaction. Once there is a hedge order, the psychological interference with the transaction is infinitely magnified. And once you have the idea of a hedge order, it means that your transaction is a failed plan, and you have denied your trading plan. In this case, it is better to make a profit-taking plan and exit in batches. A failed transaction is also a transaction, and there is nothing unacceptable.
The second reason is not that the hedge order is unsolvable. Unlocking the trade is a test of comprehensive ability. The key to unlocking the hedge order is to accurately grasp the price reversal point, which is both difficult and easy!
Easy: just find the reversal point to unlock
The difficulty is: it takes time and patience to wait for the key points to appear
The question is: when will it appear? During the waiting period, a large amount of storage fees may be incurred. Can the psychology that is already close to the limit still bear this?
If it is possible, let's talk about how to unlock it.
There are several key points to unlocking:
1. Judgment of trend (structural position)
2. Determination of fluctuation space
3. Determination of reversal points (key points)
4. Determination of time period
5. Analyze the long and short forces line by line
1. Judgment of trend (structural position) The source of floating loss: misjudgment of trend (structural position). There are two mistakes: buying in the supply area; selling in the demand area. As a result, the price directly reverses and does not turn back, and the investor is unwilling to cut losses, thus being trapped. When the floating loss reaches the psychological limit, the order is locked. This inherently leaves a disadvantage: the order is locked only when the psychological limit is reached, resulting in little room for operation when unlocking it later. This makes it easy to suffer a large loss or blow up the position.
2. Judgment of volatility space: Once the order is locked, there will be a volatility space for floating losses. Conversely, when it is unlocked later, without adding positions, there must be a reversal unlocking volatility space.
3. Judgment of reversal points (key points-structural positions) Distinguish between rebound points and reversal points Rebound points: bring a wave of price correction Reversal points: bring a wave of enough to unlock the fluctuation space There may be multiple key points (structural positions), some are good, some are not; some you think are good, but often are not; some you think are not good, but turn out to be very good. How to choose?
4. Judgment of the time cycle Some reversal points come from low time cycles, such as 1h, 4h, etc., which bring about a limited reversal fluctuation space to a certain extent; while relatively high time cycles, such as daily charts, weekly charts, monthly charts, etc., will have sufficient reversal fluctuation space. The problem is: The reversal point of the low time cycle has a small corresponding stop loss space; The reversal point of the high time cycle has a large corresponding stop loss space. Do you dare to use a large stop loss in exchange for a large space? This is another issue that requires a balance. Although the result of the price testing the key point (structural position) is that the price reverses almost immediately after hitting the price, there are also key points of failure. Therefore, the floating loss fluctuation space when locking the order in the early stage is crucial to unlocking it in the later stage. It is best to use a small stop loss in exchange for a large space, which requires analyzing the long and short forces of each K line.
5. Analyze the long and short forces of each K-line In summary, we have found the key point (structural position) where the trend or trend is about to reverse, and the time period is acceptable. The next step is to confirm the analysis of unlocking the fluctuation space. This requires analyzing the long and short forces of the K-line of the previous trend one by one, and further judging the unlocking space that the reversal point can bring, so as to achieve the unlocking purpose. CHATME:Good brother NCfs2015
