Recently, the market has rebounded in the past two days. Seeing the strong trend at the small level, even the altcoin market has begun to show signs of activity. However, in terms of price, the price of Bitcoin has not broken through 44,000, which is relatively weak. From a technical perspective, the large time frame is still dominated by the bears, and the short-term rebound is just the final ripple of the bulls.
Let's first look at the daily chart level:
The downward retracement at the daily chart level may be a short-term three-wave, but before the exhaustion of bearish energy at the daily chart level, the market is still bearish, with the main focus on the large time frame retracement.
To assess the trend at the large time frame, we must have enough patience. Many times, situations that are too fast to react to often occur at the small level (30 minutes or lower), but not at the large level. Whether it's a bottom or a top, the large time frame will give us enough time to react. The key lies in the process of building the bottom and top. As traders, can we react to the signals of the strength of the bull and bear market.
4-hour chart level:
The upward trend can be considered a trend divergence (refer to the previous article). Currently, there is a confirmation of a short position at this level, which basically declares the end of the upward trend on the left side. The right side trend may be a downward trend, or it may only form a larger consolidation before continuing upward (the strongest market situation). Therefore, those entering short positions at the moment must pay attention to the exhaustion signal of the bearish energy at the 4-hour level. Because shorting is riskier than going long.
Let's look at the 30-minute chart level:
The upward trend shows a clear expectation of consolidation divergence. If there is another confirmation of a short position (the current downward movement has already touched the highest point of the 30-minute center GG, indicating that if a confirmation of a short position occurs, it will be an excellent opportunity to add to the position), most of the position can be entered.
When trading at the large time frame, position management must be emphasized. Large positions must be taken when the trend is relatively clear and opportunities on the right side have appeared. Corresponding to the current market, it is an opportunity for a 30-minute confirmation of a short position, which will probably occur in the next two days.
Simple terminology explanation:
Level: A unique concept in the study of the market, representing the market in two dimensions of time and space. The larger the level, the longer the time and the greater the fluctuation space, generally including 4-hour level, 1-hour level, 30-minute level, etc.
Trend type: Divided into consolidation and trend, with rising and falling trends; each level has corresponding trend types.
Segment: The composition of the trend type at a lower level, "a segment of a certain level" specifically refers to a segment.
Divergence: Refers to the end of an upward or downward trend, where the price reaches a new high/low, but the momentum clearly weakens. Usually judged with the help of MACD.
The views in the article are for learning and reference only and do not constitute investment advice.
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