The market has been relatively volatile in the past two days. Many friends in the comment area will share with me the status of their delivery orders. I noticed that the stop loss settings of some friends can be more perfect, or it can be said that it can be easier to avoid interfering with the market. Knock out the needle~
In fact, there is a very simple formula for stop loss setting: higher, lower;
To put it simply, set it a little higher or lower than the target position, rather than setting it at the exact position. Keep this principle in mind, this article will help you find some common support/resistance as target levels.
01丨Price integer off
Take the recent market as an example. #BTC The recent market has an integer price of 27,000. To trade around this area, I used 4 tradable areas as an example. The upper one is long, the lower one is short, and the opening price. At 27,000, if you only need to set the price at 27,000 even 50 points higher (actually it will be a bit higher), it will be difficult to hit the stop loss directly;
In other words, if you set a low point for long stop loss and a high point for short stop loss, this reference point can be an integer mark.
🏁The principle is that the integer area is usually the trading consensus area, and many people like to place orders in this area. Therefore, the integer price usually has intensive trading volume, so it is usually difficult to break through at once, which forms a trading stop loss. "Price Shield";
02丨Intensive transaction area
This is a support and resistance area that is easier to find. The stop loss still follows the principle of setting it higher and lower. The so-called intensive trading areas are also easy to find. They are either stage integers or golden section values. But no matter what, they all have a characteristic that is easier to detect: sideways! 🏁
Let me take the recent #BTC market as an example. The three areas drawn in the picture above all have more or less K lines moving sideways, and these sideways areas constitute the market. Support and resistance levels. Support and resistance are related to each other. If the market breaks through the current resistance, it can act as support in the future market.
The essence lies in transaction, which is the natural law of the secondary market.
Look at the three places I drew, the resistance in the top and middle two areas has very obvious characteristics, plus the top one is still near the integer level.
In the middle area, during this period of rising market, the K-line has also become smaller, which means that resistance prevents the upward trend from continuing.
The intensive trading area at the bottom has also become a periodic bottom of the recent market. It is difficult to break through without the promotion of events.
Finally, the effectiveness of the intensive trading area is not always effective. If a dense trading area is repeatedly tested, the orders in this area will continue to be consumed until the power is exhausted.
🎊This is also the reason why sideways breakthroughs are often accompanied by big market trends.
If the content of this article is helpful, thank you for your likes and attention, thank you for reading~ #SJCrypto