Put together a simple stop-loss and stop-profit method

The price of Bitcoin broke the previous downtrend line during the day, leaving a relatively strong uptrend pattern in the short term and currently trading above 36000. From the recent trend, bulls do have a sweep of the previous signs of decline, but Yu Heng teacher still want to remind you of the currency friends, currently still do not recommend rashly chase high. Although the price is higher, for a lot of money friend, especially stock holders is a happy thing, but the currency fell from a peak above 60000, the current rebound is still not as strong, afternoon if you want to have bigger upside, or even give a return to the upward trend signal, We should at least stabilize above 40,000-41,000. So at present, afraid of empty currency friends can consider to grasp the light warehouse, but mainly to band short line.
1.png
In fact, with the current trend, a lot of friends themselves also understand that short-term will be better. But do not know how to grasp the opportunity, do not know how to control the risk. Do short term will indeed have a higher requirement for the point, especially for the volatility of specific products like Bitcoin. In recent days, the market, I believe that a lot of friends have been swept back and forth experience. Even some currency friends began to directly choose not to take a stop loss, it is true that otherwise stop luck can really carry back, but finally carry the risk of single is very large. Even if you are lucky to carry back ten times, as long as the goddess of luck did not take care of once, that is broken bones, all the work wasted.
So rather than fight, do not have a good study of how to accurately grasp the good point opportunities, the following is the teacher Yu Heng finishing some stop loss stop profit methods, you can also learn.
Use support or pressure levels to stop losses and gains
That is, buy the position in the support, stop the balance of the position in the pressure, buy after falling below the support to stop the loss, and vice versa. This is the most commonly used stop-loss and stop-profit method in trading. It applies to all trading strategies, such as intraday, short term, band, medium and long term. The premise of using this method is to fully and accurately judge the support and pressure.
U = 1746976932413626, 491 & FM = 26 & FMT = auto&gp = 0. JPG
A brief description of the meaning of support and pressure:
Support is an area where demand is concentrated, that is, where potential buying power is concentrated, and where demand is strong enough to prevent prices from falling further. It can also be interpreted that when the price reaches this point, it looks cheap, so buyers are more inclined to buy, while sellers are reluctant to sell, so demand begins to exceed supply.
Pressure is an area where supply is concentrated, and when prices reach this area, sell-side forces will emerge. Selling pressure in this area is strong enough to prevent further price increases. When the price reaches this point, sellers are more willing to sell, while buyers are less willing to buy, so supply exceeds demand and prices cannot continue to rise.
K line pressure support: intensive trading area, early high and low point, price pattern, trend line, average, etc.
Pressure support on the time-sharing chart: yesterday's closing price, high, low, settlement price, today's opening price, average price, intraday high and low point, etc.
The advantage of this method is that the stop-loss and stop-profit Settings can follow the current market fluctuations as much as possible. The disadvantage is that there are many users, so false breakouts often occur. Therefore, this approach should be applied with the ability to identify traps and be able to exit the market and re-enter at a new signal.
Technical Stops:
Stop loss orders placed at key technical levels can prevent further losses. There is no set pattern for technical stops. Generally speaking, the use of technical stop - loss method is nothing more than a small loss to bet big gains.
Its main indicators are:
1. Important EMA is broken;
2. The tangent of the trend line is broken;
3. The neck line of head and shoulder, double top or circular top and other head forms are broken;
The lower rail of the rising channel was broken;
5, the gap near the fall.
For example, after buying the lower rail of an uptrend, wait for the uptrend to end before closing and place stops near important movement lines.