Example of how to determine the timing of a trade
2024-09-22

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The following is an explanation of how to use the indicators included in the chart.

If you don't need to see how to use the indicators, you don't have to read it.

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(15m chart)


Currently, it is moving sideways within the box section of the HA-Low indicator.

Therefore, in order for a trend to occur, it must break out of the box section of the HA-Low indicator.

When the support and resistance points indicated on the chart are touched, you should check the movements of the OBV, DMI, and StochRSI indicators and decide whether to proceed with the trade.

If the DMI rises above 25, there is a possibility that it will break through the box section of the HA-Low indicator upward.

At this time, you should check whether the OBV is rising along the high point line and the status of the StochRSI.

If not, you should decide whether to proceed with the trade within the box section.

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I think that the indicators I used have been organized and modified, and now they are being used more in day trading.

If possible, it is good to draw support and resistance lines on the 1M, 1W, and 1D charts and respond accordingly.

The most difficult part of any trade is whether it will go up or down right now.

For this, we refer to many things.

So, what I am going to explain is not necessarily correct, but I think it will reduce the fight with myself about whether to trade right now.

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(1D chart)


(4m chart)


The most important thing in my chart is the MS-Signal indicator.

This MS-Signal indicator was created using the MACD formula.

Therefore, to see the trend, you can refer to the movement of the MS-Signal indicator (M-Signal on 1D, 1W, 1M charts).

Then, you can immediately see the current trend on any time frame chart.

For reference, the MS-Signal indicator is made up of the M-Signal line and the S-Signal line.

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(15m chart)


(5m chart)

The next important indicator is the HA-Low, HA-High indicator.

The HA-Low, HA-High indicator is an indicator that shows the conditions for trading on the Heikin Ashi chart.

Therefore, the creation of the HA-Low indicator means that a low point range has been formed, and the creation of the HA-High indicator means that a high point range has been formed.

Therefore, if it is supported near the HA-Low indicator, it is a buying period, and the HA-High indicator is the first selling period.

A full-scale uptrend begins when it is supported by the HA-Low indicator and rises above the HA-High indicator.

On the other hand, a full-scale downtrend begins when it encounters resistance from the HA-High indicator and falls below the HA-Low indicator.

You can use this characteristic to determine the timing of trading.

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The BW line is an indicator that is displayed when the lowest point (0) and highest point (100) of the BW indicator included in the TS-BW DMI auxiliary indicator form a horizontal line.

Therefore, the creation of the BW line means that a low point or high point section has been formed.

Therefore,
1. If the BW indicator is at the lowest point (0), it means that a low point section has been formed.
2. If the BW indicator is at the highest point (100), it means that a high point section has been formed.

However, rather than looking at the BW line in this sense, it is better to think of it as a support and resistance point and focus on whether you can proceed with trading depending on whether it is supported or not.

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With the newly added OBV and DMI indicators, you can now check whether the current rise or fall will continue by following the correlation of the StochRSI indicator.

I think it was difficult to determine this with just the StochRSI indicator in the past.

The reason is that when the StochRSI indicator entered the overbought or oversold zone and tried to escape from that zone, it often led to additional rise or fall.

Therefore, your own chart analysis know-how was needed to determine this.

That does not mean that chart analysis know-how is not needed because the OBV and DMI indicators were added.

Please think of it as the concept that there is more reference material to determine this.

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(OBV indicator)

In order for the price to rise or fall, trading volume must occur.

Therefore, it is good to see whether the current rise or fall occurs and whether the buying or selling force increases.

The indicator used to confirm this is the OBV indicator.

I will not explain the concept of the indicators I am explaining separately.

The reason is that it only increases the time spent studying the chart, so I am trying to explain only the core utilization methods of the indicator.

In that sense,
- If the OBV line rises above the high point and is maintained, it means that the buying force is increasing,

- If the OBV line falls below the low point and is maintained, it means that the selling force is increasing.

By utilizing this, it can be helpful in determining whether the current rise or fall is sustainable.

The color changes when the low or high line is broken, which means that it is the trading period.

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(DMI indicator)

The DMI indicator is an indicator composed of D+, D-, and ADX lines.

Therefore, it is difficult to see and interpret it.

To compensate for this, three indicators were created as one.

The ADX indicator indicates the strength of the trend.

Therefore, an ADX line rising means that the current trend is getting stronger.

On the other hand, an ADX line falling means that the current trend is getting weaker.

Therefore, you cannot tell whether the current trend is rising or falling just by looking at the ADX line.

The correlation between the D+ and D- indicators tells you this.

The ADX line in the TS-BW DMI indicator is a comprehensive expression of this information.

If the color of the ADX line is pink (#e65100), it indicates an upward trend, and if it is aqua, it indicates a downward trend.

If the ADX line is located below 25, it is highly likely that a box section will form.

Therefore, at this time, you should check the movement of the indicators mentioned above and check whether there is support at the support and resistance lines displayed at the current price position to determine the trading point.

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By checking the correlation between StochRSI and StochRSI EMA, you can determine whether the current trend is sustainable by checking whether the previously used StochRSI indicator has entered the overbought or oversold zone.

In other words, even if OBV and DMI show an upward trend, if the StochRSI indicator shows a downward trend in the overbought zone or declines, you should determine that it is difficult to continue the upward trend and find a way to respond.


In that sense, if you look at the 1D chart, you can immediately see that even if it rises further, it will eventually fall.

Therefore, I think it is a good idea to wait until the StochRSI indicator shows an initialization (if it has entered the overbought zone, it must fall and touch the oversold zone to be determined to have been initialized).

We do not know how much the StochRSI indicator will fall, but now we can determine it by looking at the OBV and DMI indicators together.

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To comprehensively explain the OBV, DMI, and StochRSI indicators,
1. For an uptrend to continue
- OBV must show an uptrend along the high point line
- DMI must show an uptrend
- StochRSI must show an uptrend (better if it has not entered the overbought zone)

2. For a downtrend to continue
- OBV must show a downtrend along the low point line
- DMI must show an uptrend
- StochRSI must show a downtrend (better if it has not entered the oversold zone)

3. In the case of a box zone
- When OBV moves between the low point line and the high point line
- When DMI is maintained around 25 or below
- When StochRSI is maintained around 50

If you have not started a trade when a movement occurs at the support and resistance points drawn on the chart, it is recommended to check whether there is support by meeting the support and resistance points and then proceed with the trade.

Also,
- When OBV rises above the low or midline
- When DMI shows an upward trend
- When StochRSI rises in the oversold zone and becomes StochRSI > StochRSI EMA

When the above conditions are met, you can check whether there is support at the support and resistance points drawn on the 1M, 1W, and 1D charts around the price and proceed with the transaction.

If you are using my chart to trade, it is recommended to draw at least the HA-Low and HA-High indicators on the 1M, 1W, and 1D charts.

And, when the BW line is created, you can determine the trading point by looking at the movement of the indicators.

If you need more support and resistance points, you can activate the StochRSI-related (StochRSI < 80, StochRSI > 20), OBV, CCI-related (-100, +100), and RSI-related (RSI < 70, RSI > 30) indicators in the settings of the HA-MS_BW indicator.

In addition, 1, 2, 3, and 4 indicate the volume profile points by period, so they also play the role of support and resistance.

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Have a good time.

Thank you.

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- ​​Big picture

It is expected that a full-scale uptrend will start when it rises above 29K.

The area expected to be touched in the next bull market is 81K-95K.

#BTCUSD 12M

1st: 44234.54
2nd: 61383.23
3rd: 89126.41
101875.70-106275.10 (overshooting)
4th: 134018.28
151166.97-157451.83 (overshooting)
5th: 178910.15

These are points where resistance is likely to occur in the future.
We need to check if these points can be broken upward.

We need to check the movement when this section is touched because I think a new trend can be created in the overshooting section.

#BTCUSD 1M

If the major uptrend continues until 2025, it is expected to start forming a pull back pattern after rising to around 57014.33.
1st: 43833.05
2nd: 32992.55

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