When reviewing the 4-hour chart, I first check whether the close is outside the range.
When looking at a BTC breakout, don't focus only on one big bullish candle.
I use three steps to judge whether a range has truly been broken:
First, mark the recent highs and lows on the timeframe you're watching. Don't mix ranges from different timeframes. Check whether the price closes outside the range, rather than briefly piercing it intraday. Then see whether volume confirms the move, and watch whether the price quickly returns to the range.
These factors can help you make sense of market movements, but they can't guarantee that the price will keep moving in a particular direction. Volume is not a standalone buy or sell signal either.
When you assess a breakout, do you focus more on the closing price or on volume?
$BTC #市场观察
When looking at a BTC breakout, don't focus only on one big bullish candle.
I use three steps to judge whether a range has truly been broken:
First, mark the recent highs and lows on the timeframe you're watching. Don't mix ranges from different timeframes. Check whether the price closes outside the range, rather than briefly piercing it intraday. Then see whether volume confirms the move, and watch whether the price quickly returns to the range.
These factors can help you make sense of market movements, but they can't guarantee that the price will keep moving in a particular direction. Volume is not a standalone buy or sell signal either.
When you assess a breakout, do you focus more on the closing price or on volume?
$BTC #市场观察