Chart Analysis and Trading Strategy
2024-09-24

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(Trend-related)

The M-Signals on the 1M, 1W, and 1D charts have converged and are showing an upward trend, and are currently showing signs of converging again.

Therefore, if it falls this time, the key issue is whether there is support near the M-Signal on the 1M chart.

Currently, the M-Signal indicator on the 1M chart is passing around 52K.

Before that, we need to check whether there is support near the M-Signal on the 1D and 1W charts, which are passing around 60K.

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(Trading-related-1)

HA-Low, HA-High indicators are indicators created to conduct trading on the Heikin Ashi candle chart.

The creation of HA-Low means that a low point range has been formed.

Therefore, if it shows support near HA-Low, it is a time to buy.

If it falls below HA-Low, there is a high possibility that the low point will be renewed, so a step-down trend is likely to occur.

The creation of HA-High means that a high point range has been formed.

Therefore, if it shows resistance near HA-High, it is a time to sell.

If it rises above HA-High, there is a high possibility that a step-up trend will occur, so a step-down trend is likely to occur.

Therefore, you can receive a basic range to start trading.

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(Trading-related-2)



In order to conduct a transaction, support and resistance points drawn on 1M, 1W, and 1D charts are required.

To do this, we used various indicators to display support and resistance points.

The support and resistance lines provided in this way indicate that the longer the horizontal line, the more faithfully it can perform its role as support and resistance.

The horizontal line displayed on the bottom chart among the three charts above is displayed by the BW indicator.

The BW indicator is an indicator that comprehensively evaluates the MACD, StochRSI, CCI, PVT, and suerTrend indicators.

Therefore, I think it is highly reliable.

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(Trading-related-3)

The BW indicator mentioned near Trading-2 is actually an indicator included in the TS-BW DMI indicator.

This BW indicator is designed to draw a horizontal line on the price candle when it forms a horizontal line at the lowest point (0) or highest point (100).

Therefore, you can proceed with trading depending on whether there is support at this horizontal line.

If the BW indicator is created at the lowest point (0), it is likely to form a bottom section, and if it is created near the highest point (100), it is likely to form a high section.

At this time, you can check whether the StochRSI indicator is in the oversold or overbought section and the correlation between StochRSI and StochRSI EMA to gain time to respond to an uptrend or downtrend.

Since the BW line is currently created below the candle, it must fall below the BW line in order to turn into a downtrend.

Therefore, when it falls below the BW line, you need to check whether the StochRSI indicator has fallen in the overbought zone or is maintaining the state of StochRSI < StochRSI EMA.

If so, you need to determine that there is a higher possibility of a downtrend and create a response strategy.

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(Trading-related-4)

The auxiliary indicators added this time are DMI and OBV.

However, it is not easy to check these two indicators separately.

When interpreting the two indicators, subjective thoughts are constantly added, leading to incorrect interpretations or taking a long time to interpret, making it difficult to respond quickly in real time.

Therefore, we have comprehensively presented the important interpretation methods of the DMI and OBV indicators.

If it rises from the 0 point, it means that the upward trend is strong, and if it falls, it means that the downward trend is strong.

Among them, the -2 ~ 2 section can be interpreted as forming a box section, that is, a sideways section.

Therefore, the newly added DMI+OBV can be considered as a method of interpreting the CCI indicator.

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Looking at the above, you may think that you can trade well, but when you actually trade, you may feel that it is not going well.

I think this is because you do not have a trading strategy that fits your investment style.

To create a trading strategy that fits you, you must have a concept of the three things above:
1. Investment period
2. Investment size
3. Trading method and profit realization method.

In other words, you start trading thinking that you will conduct day trading as the investment period, but as the trading time passes, the problem is that the investment period is gradually extended to the short term and beyond, not day trading.

In addition, you should distribute your investment funds according to your investment period, but if you do not do so, investing a lot of investment funds in one coin (token, stock) and creating an imbalance in your trading is also a problem.

The investment scale of scalping or day trading and the investment scale of the mid- to long-term are bound to be different, but by using the same concept, you will create a situation where you can no longer proceed with the transaction.

In other words, this refers to the phenomenon where you end up with 0 cash, which prevents you from proceeding with the transaction you intended and ends up proceeding with the wrong transaction.

To do this, you need to think about how to buy, sell, cut losses, etc. when trading and how to make a profit.

To do this, you need support and resistance points drawn on the 1M, 1W, and 1D charts.

Then, you use various auxiliary indicators or chart tools to check whether there is support at these support and resistance points and whether it is a time for trading.

The most commonly used ones are the price moving average, trend line, and Fibonacci ratio.

Since these indicators and chart tools are created after the price movement, they can all be considered lagging.

So, I would not say that auxiliary indicators such as RSI, StochRSI, MACD, CCI indicators are lagging indicators and therefore do not need to be used.

Ultimately, the decision to proceed with a trade is determined by how well it reflects your investment style.

Therefore, even if the chart analysis is interpreted in a completely different direction, you can reduce losses or even gain profits depending on your trading strategy.

Therefore, rather than investing a lot of time in chart analysis, you should figure out how it fits your investment style and think about how to reflect it in your trading.

So, rather than worrying about whether the current price will rise or fall, you should think about how to respond when you start trading at the support and resistance points drawn on the 1M, 1W, and 1D charts.

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Have a nice time.
Thank you.

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- ​​Big picture

The real uptrend is expected to start after rising 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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