How to correctly understand band operation

In band operation, there are roughly two types. One is a band operation mainly based on technical indicators, which can reveal information behind the price and judge the direction of the subsequent market trend. The other is more directly influenced by news, and the two are not contradictory but complementary. Finally, it is important to emphasize that in a trend-dominated market, whether it is technical indicators or news, it is difficult to change the overall trend.

First, let's talk about the news. Because the current cryptocurrency information spreads quickly, there are many financial news sources where you can find daily key events and news from exchange projects. Analyzing through news to determine entry and exit positions is important, but it is essential to focus on key points. For example, it is important to pay attention to the situation of Grayscale's institutional holdings, the regulatory efforts of domestic policies, the attitudes of international markets such as Europe and Asia towards cryptocurrencies, as well as international financial conferences or meetings of international organizations and the important data they release. At the same time, it is important to learn to sift through useful information and filter out junk information, and to exercise personal judgment. Otherwise, it may lead to "indigestion."

Now let's look at the technical indicators. Generally speaking, everyone has their own preferences and analysis techniques, so it is important to note that some trade-offs need to be made among common indicators. However, all indicators have limitations and lag. It is recommended to combine multiple indicators and make judgments based on the overall information environment at the time. Common and basic indicators include KDJ, MACD, volume-price relationship, moving average system, and trend analysis.

If the fundamentals, technicals, and fund flows, as well as policy decisions, all point in the same direction, then it is bold to enter the market and operate along with the trend. However, it is important to grasp profits in a timely manner to avoid losses. Conversely, if different analyses lead to contradictory conclusions, then everyone needs to make choices. This is when everyone should be cautious in their operations. Those who are prudent can wait and observe until the market becomes clear before entering.

In specific operations, it is recommended that everyone have a clear understanding of their own capabilities and choose cryptocurrencies that they can handle within their range of abilities. Remember that this is an investment market where risks and returns coexist. Some small cryptocurrencies may have a huge increase in the early stage, but they may also plummet later, so it is advisable not to touch such cryptocurrencies. If you really want to enter the market with the trend, it is best to enter and exit quickly. For investors with a certain level of proficiency in news and technical analysis, and experience in risk management, they can try more mainstream cryptocurrencies beyond Bitcoin and Ethereum. However, it is important to remember that in band operations, no matter how confident you are in the current trend, do not go all in. Risk control and capital protection should always come first.

Personal summary:

The cryptocurrency investment market follows the Pareto principle, where short-term risks and returns are relatively high. Therefore, it is recommended that everyone make choices based on their actual situation and not attempt things beyond their capabilities. Do not always try to make money beyond your capabilities. Achieving financial freedom is not an overnight success. There are not many overnight fortunes in the world. Do not expect to get rich overnight. Blindly going all in without experience in the current trend of band operations may lead to a complete loss. In the current trend of band operations, it is recommended to maintain short positions on rebounds and pay attention to resistance and support levels.

For more real-time trading signals, you can follow my public account to get more information. You can also learn about technical analysis and how to exit positions. I have been studying the market for many years, analyzing the major trends in the cryptocurrency market, and have studied and guided BTC, ETH, DOT, LTC, FIL, EOS, BCH, ETC, and other cryptocurrencies. For those who are not familiar with trading, you are welcome to study and learn together.

免责声明：本文章仅代表作者个人观点，不代表本平台的立场和观点。本文章仅供信息分享，不构成对任何人的任何投资建议。用户与作者之间的任何争议，与本平台无关。如网页中刊载的文章或图片涉及侵权，请提供相关的权利证明和身份证明发送邮件到support@aicoin.com，本平台相关工作人员将会进行核查。