Example of how to select a volatility period

7 hari yang lalu

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The date that I am talking about as a volatility period refers to a period in which there may be a movement that may change the trend.

In other words, it means that there is a high possibility of creating a new wave as the volatility period passes.

Basically, the volatility period is expressed as an issue regarding the coin (token) or a global issue, but the volatility period that I am talking about is expressed by the support and resistance points and trend lines drawn on the chart.

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The support and resistance points refer to the points drawn on the 1M, 1W, and 1D charts.

In other words, they refer to the points of the HA-Low, HA-High, BW(0), BW(100), and OBV indicators displayed on each chart.

When indicating support and resistance points, indicators connected to the current price candle are unconditionally drawn.

Also, indicators that are not expressed up to the current price candle are drawn starting from the one with the longest horizontal line.

Among indicators that are not expressed up to the current candle, horizontal lines expressed less than 5 candles are not drawn if possible.

If there are support and resistance lines that are expressed too closely, the support and resistance lines that are closest to the current candle are used.

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The StochRSI indicator is used to draw a trend line.

When the StochRSI indicator enters the oversold or overbought zone and reverses, that is, when a peak is created, those points are connected and expressed.

Therefore, the peak created in the 20~80 range of the StochRSI indicator is ignored.

Therefore, the trend line is created by connecting the high and low points of the StochRSI indicator.

However, the high point connection line connects the opening price of the falling candle.

If there is no bearish candle at the peak of the StochRSI indicator, move to the right and use the first bearish candle.

When drawing the trendline for the first time, it is better to draw it from the vicinity where the current wave started.

If the StochRSI indicator has two peaks in the overbought or oversold area, use both when it leaves the overbought or oversold area and then re-enters it.

Otherwise, use only one peak at a time.

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Draw support and resistance points and trendlines on each chart.

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Find and mark points where trend lines or support and resistance points intersect at least two times.

The importance is determined in the order of trend lines drawn on the 1M chart > trend lines drawn on the 1W chart > trend lines drawn on the 1D chart.

Therefore, in order to express a period of volatility with a trend line drawn on the 1D chart, there must be at least two intersecting points.

In other words, there must be at least two intersecting points when indicating a period of volatility, such as when trend lines intersect each other or when trend lines intersect support and resistance points.

In addition, support and resistance points are also important in the order of 1M > 1W > 1D charts, so when they intersect with support and resistance points, they are selected according to this importance.

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Then, if you hide the trend line, you will complete the chart showing the period of volatility.

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When drawing for the first time,
1. When indicating support and resistance points, if you do not understand the arrangement of candles, it may be difficult to select.
2. It may be difficult to select the peak and candle of the StochRSI indicator.
3. It may be difficult to select which intersection point to select when indicating the volatility period.

Since you cannot get used to everything at once, it is recommended to draw and observe one by one and try to solve the difficulty of the next step once you get used to it.

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The StochRSI indicator on this chart is an indicator whose formula has been changed from the basic StochRSI indicator.

Therefore, if possible, it is recommended to use the StochRSI indicator on my chart.

If you use your own StochRSI indicator,
Settings: 14, 7, 3, 3 (RSI, Stoch, K, D)
Source value: ohlc4
If you change the values ​​above, it will be expressed similarly.

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Thank you for reading to the end.
I wish you successful trading.

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