Interpretation of support and resistance points and Fib ratios

21 Jan

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There was a change in the chart while I was writing the idea.

Therefore, please refer to the chart attached below.

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(TRUMPUSDT.P 1D chart)

Since the chart was created not long ago, it is practically impossible to analyze it.

However, I will take the time to explain it as an extension of the explanation of Fibonacci ratios.

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(1D chart)

You can check the retracement ratio using the Fibonacci retracement tool on the 1D chart.

(30m chart)

You can check the Fibonacci ratio on the 30m chart and analyze the chart.

However, I think the Fibonacci ratio is a chart tool for chart analysis, so in order to trade, you need to draw support and resistance points by the arrangement of candles.

As I mentioned earlier, since the chart is created not long ago, you can select support and resistance points on the 1M, 1W, and 1D charts, so even if you draw support and resistance lines, their role is likely to be weak.

Therefore, I think it is better to trade these coins (tokens) in short-term transactions such as scalping or day trading.

If the trading period is long, the psychological burden is likely to increase, which can lead to incorrect trading.

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The HA-MS indicator was activated to indicate support and resistance points.

If you activate the Fibonacci ratio drawn on the 1D chart, it is as follows.



You can see that the maximum range we can trade is 28.0-70.654.

If we go outside this range, a new wave will be created, so new support and resistance points are needed.

At this time, a chart tool that can help interpret the chart is the Trend-Based Fib Extension.

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Since the HA-Low indicator was formed at the 40.245 point, we can see that the low point has been formed.

Therefore, if it shows support near the HA-Low indicator, it is a time to buy (LONG).

Since it has currently fallen below the HA-Low indicator, it is highly likely that it will update the latest low, so it was possible to enter a sell (SHORT) position when it fell from the HA-Low indicator.

As the price falls, I think it is better not to make a new transaction until the HA-Low indicator is newly created or the existing HA-Low indicator rises and shows support.

If it is supported by the HA-Low indicator and rises,
- 46.618
- 63.882-70654
You should check for support in the above section.

If it is not supported, it is a time to sell in parts.

In my chart, the MS-Signal indicator is an important indicator in terms of trend.

Therefore, in order to turn into an uptrend, the price must be maintained above the MS-Signal indicator.

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(12h chart)

The current chart is so new that it is virtually impossible to see the trend.

If you want to draw with the Trend-Based Fib Extension tool, the largest time frame chart you can draw is the 12h chart.

The point where the finger points is the selection point.

(30m chart)

The chart above is drawn with the Trend-Based Fib Extension tool.

The circles marked on the far right correspond to important support and resistance zones.

When interpreting Fibonacci ratios, the 0, 0.5, 0.618, and 1 ratios can be interpreted as key ratios.

Therefore, if it falls below 1, it may fall to around 1.618 (2.198), so caution is required when trading.

The 0.618 (35.663) ~ 0.5 (39.612) section can be interpreted as an important support and resistance section.

Since the HA-Low indicator is formed within this section, it can be interpreted that the role of support and resistance is emphasized.

Even if the Fibonacci ratio is drawn in this way, it can be helpful in setting the timing of trading only when it is interpreted in accordance with the support and resistance points drawn on the 1M, 1W, and 1D charts.

Otherwise, it is likely that your subjective thoughts will be included and the transaction will proceed in the wrong direction.

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The support and resistance points must be drawn by looking at the arrangement of candles on the 1M, 1W, and 1D charts to be activated as support and resistance points.

The support and resistance points drawn on the time frame chart below may have a weak role, so caution is required when trading.

In that sense, I hope you understand the content of this idea as how to comprehensively interpret the Fibonacci ratio and support and resistance points.

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Thank you for reading to the end.
I hope you have a successful trade.

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25 Jan

Trade aktif

No matter what trading method you study, the one that fits your investment style is the best.

No matter how famous someone's trading method is, if you are not sure what your investment style is, that trading method cannot be applied properly.

The same goes for chart analysis.

Chart analysis should also be conducted according to your investment style so that you can create a trading strategy based on it.

For example, if your investment style is to conduct quick transactions, but you conduct chart analysis from a mid- to long-term perspective, it will not be helpful at all.

Therefore, you need time to find out exactly what your investment style is.


In that sense, we used several indicators to minimize the time spent on chart analysis and invest more time in creating a trading strategy.

The 5EMA and MS-Signal (1M, 1W, M-Signal on the 1D chart) indicators on the 1D chart allow you to see the overall trend of the chart.

The HA-Low and HA-High indicators are good indicators for creating trading strategies.

The BW(0) and BW(100) indicators help you create detailed response strategies.

Currently, the MS-Signal (1M, 1W, M-Signal on the 1D chart) indicators for TRUMP coins (tokens) have not been formed for long since the chart was created.

Therefore, since the 5EMA on the 1D chart has started to form, you should use the 5EMA indicator on the 1D chart to see the trend at this time.

Therefore, in order to turn into an uptrend, the price must be maintained above the 5EMA indicator on the 1D chart.

Since it has fallen below the HA-Low indicator, it is an ambiguous time to make a new transaction.

Therefore, I think it is a good idea to create a trading strategy based on whether or not it supports when you meet the HA-Low indicator.

Since it is highly likely that the 30m chart will turn into an uptrend only when the MS-Signal indicator formed on the 30m chart rises above it, it is a good idea to wait for the trading time while keeping this in mind.

7 hari yang lalu

Catatan

#TRUMPUSDT.P

A volume profile section has started to form around 27.397.
Accordingly, support around 27.397 is an important issue.

6 hari yang lalu

Catatan

#TRUMPUSDT.P

TRUMP coin (token) is expected to have an important volume profile section at 27.397.

Therefore, we should create a trading strategy based on the 27.397 point and respond accordingly.

Since the chart was created not long ago, it is not possible to select support and resistance points.

However, since support and resistance points were created on the 1D chart for the first time, the 27.397 point is expected to be a meaningful point.

5 hari yang lalu

Catatan

#TRUMPUSDT.P

The point to watch is whether the volume profile point created on the 1D chart is horizontal for at least 3 days.
The key is whether it can maintain the price by rising above 5EMA.