#比特币波动性 Study of Gann Theory on the second day, organize some practical valuable insights.
The basic logic of this trading style is extremely strong—the market does not move randomly, but operates according to mathematical and natural laws. We must take cycles seriously: a short cycle may last a few days, while a long one can extend up to 30 years. History may rhyme but it will never repeat exactly; the key is to capture the balance point between time and price, which is often a signal that the trend is about to turn.
The most prominent tool in the toolkit is geometric analysis. The 1×1 line at a 45-degree angle is the reference line for determining strength and weakness, and combined with the wheel within a wheel and drawing nine squares, key areas of support and resistance can be identified. There are also methods for price retracement ratios: 50% is the basic equilibrium level, and both 33% and 66% are also worth watching. Once these levels are broken, the probability of a trend reversal increases.
However, no matter how powerful the theory is, without risk management it is useless. A single trade should not exceed 10% of the capital, and a stop-loss should be set in advance. When you profit, you can increase the trade size in a pyramiding style; if you lose, admit defeat and exit—don't think about averaging down, as that's a surefire way to lose money. Another easily overlooked point: don’t let emotions drive you. Fear and greed can make you make stupid mistakes, and real opportunities require triple confirmation: time, price, and trend. Waiting patiently is better than acting in confusion.
$BTC These trending types fluctuate greatly, making them suitable for testing the effectiveness of this methodology.
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#比特币波动性 Study of Gann Theory on the second day, organize some practical valuable insights.
The basic logic of this trading style is extremely strong—the market does not move randomly, but operates according to mathematical and natural laws. We must take cycles seriously: a short cycle may last a few days, while a long one can extend up to 30 years. History may rhyme but it will never repeat exactly; the key is to capture the balance point between time and price, which is often a signal that the trend is about to turn.
The most prominent tool in the toolkit is geometric analysis. The 1×1 line at a 45-degree angle is the reference line for determining strength and weakness, and combined with the wheel within a wheel and drawing nine squares, key areas of support and resistance can be identified. There are also methods for price retracement ratios: 50% is the basic equilibrium level, and both 33% and 66% are also worth watching. Once these levels are broken, the probability of a trend reversal increases.
However, no matter how powerful the theory is, without risk management it is useless. A single trade should not exceed 10% of the capital, and a stop-loss should be set in advance. When you profit, you can increase the trade size in a pyramiding style; if you lose, admit defeat and exit—don't think about averaging down, as that's a surefire way to lose money. Another easily overlooked point: don’t let emotions drive you. Fear and greed can make you make stupid mistakes, and real opportunities require triple confirmation: time, price, and trend. Waiting patiently is better than acting in confusion.
$BTC These trending types fluctuate greatly, making them suitable for testing the effectiveness of this methodology.