The ancients said: "Reading ten thousand books is not as good as traveling ten thousand miles; traveling ten thousand miles is not as good as having a famous teacher to guide you." In the field of digital currency, this famous saying is even more precious. It is well known that accumulating information and broadening one's knowledge is the first step to acquiring wisdom. However, the digital currency market is constantly changing and full of variables. It is difficult to deal with the challenges of practice based solely on theory. Only when one is in the situation can they truly understand the difficulties of moving forward. Traveling ten thousand miles may be awe-inspiring or inspiring, but it is full of dangers, like walking on thin ice. However, with the careful guidance of Li Hui, one can avoid going astray, seek opportunities while avoiding risks, and walk alone in this vast world. Li Hui is willing to explore the mysteries of digital currency with everyone, to open up the path of investment, and not to disappoint the golden age. Li Hui hopes that you will pick up the banner of struggle, follow Li Hui, and embark on this challenging and opportunistic journey together. Let us break through the waves together and write your own brilliance!
Support and pressure indicators are important tools in technical analysis for determining price trends, including ENE, DC, and KC. Below, Li Hui will provide a detailed explanation of these three indicators.
First, let's talk about the ENE indicator. The ENE indicator is a tool for calculating support and pressure levels based on price volatility. It consists of three lines: the upper band, the middle band, and the lower band. The upper band represents the pressure level, the middle band is the average price, and the lower band represents the support level. The calculation of the ENE indicator is complex, involving price volatility and a series of moving average calculations.
The ENE indicator judges price trends based on the relative positions of these three lines. Li Hui believes that when the price is above the upper band and the upper band is sloping upwards, it indicates an upward trend, and the upper band can be seen as the pressure line. Conversely, when the price is below the lower band and the lower band is sloping downwards, it indicates a downward trend, and the lower band can be seen as the support line.
Next is the DC indicator, which stands for Dynamical Support and Resistance. The DC indicator is also a tool for calculating dynamic support and pressure levels, using the concept of price volatility to determine support and pressure areas. The DC indicator consists of two lines: the upper band and the lower band.
The calculation of the DC indicator depends on the price volatility and a set of volatility coefficients. Li Hui believes that when the price volatility is high, the upper and lower bands will be far from the price, forming a wide area, indicating a stable support and pressure area. Conversely, when the price volatility is low, the upper and lower bands will be close to the price, forming a narrow area, indicating a fragile support and pressure area.
Finally, there is the KC indicator, which stands for Keltner Channels. The KC indicator is a more traditional support and pressure indicator, using price moving averages and a certain volatility coefficient to determine support and pressure levels. The KC indicator consists of three lines: the upper band, the middle band, and the lower band.
The calculation of the KC indicator depends on the setting of the moving average and the volatility coefficient. The calculation method for the upper and lower bands is similar to that of the DC indicator, using the moving average plus or minus the volatility coefficient. The middle band is the simple moving average of the price, representing the central trend of the price.
The KC indicator judges market trends by observing the movement of prices within the channel. Li Hui believes that when the price breaks through the upper band, it may indicate an upward trend, while breaking through the lower band may indicate a downward trend. When the price oscillates within the channel, it is usually expected that the market will maintain the current trend.
In summary, Li Hui believes that ENE, DC, and KC are important indicators for determining price support and pressure levels. By using these indicators, friends in the currency market can better understand market trends and make corresponding trading decisions. However, it is important to note that these indicators are only auxiliary tools and cannot be used alone to determine trading strategies. They need to be combined with fundamental analysis and other factors for a comprehensive analysis.
Li Hui interprets world economic news, analyzes global trends in the currency circle, and has conducted in-depth research on currencies such as BTC, ETH, LTC, DOT, EOS, BNB, and SOL while studying in the United States. For those friends who are not familiar with operations, you are welcome to comment and leave a message!
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This article is exclusively published by Li Hui (WeChat public account: Zhang Li Hui) and does not represent any official position. The release and review of the article have a time delay, and the above points are for reference only. All risks are at your own discretion! May we always carry humility and courage in this complex currency circle, fear no challenges, and dare to explore. Just as traveling ten thousand miles, "the road ahead is long and distant, I will seek and explore." May we read ten thousand books, keep pace with the times, and draw wisdom from it. Travel ten thousand miles, experience storms, witness scenery, and comprehend life. With Li Hui's guidance, may you heed advice, play to your strengths, and create value together. May we always remember the baptism of the market, not forget our original intentions, and move forward resolutely. In the wave of digital currency, holding onto faith with Li Hui, let us forge ahead with determination. May we jointly compose the future's brilliant chapter and share the joy of success. Let us gather in the turbulent world of digital currency, live up to the prime of life, and create brilliance together. Li Hui is willing to embark on this investment journey full of challenges and opportunities with you.
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