Core of Trading Practice: Three Windows + Key Positions + Go with the Trend
Sharing the three major trading logics I have verified through practice, avoiding noise, focusing on effective trading, making it easy for beginners to get started, all based on solid review summaries.
(1) Market Triple Structure/Three Windows: Dow Theory divides the market into primary movements, secondary corrections, and intraday noise. I combined Wei Qiangbin's 'Momentum Position State' theory (first look at the trend, then determine the position, and finally look at the shape to enter) and adjusted the analysis period. Previously, I also monitored the 5-minute chart, tortured by noise every day. In the past month, I switched to three windows, adjusting from the initial 5min, 1h, daily to 1h, daily, weekly, making it easier to see the market context. Large funds entering and exiting have a process, just like driving has starting and stopping distances. The 5-minute chart often reflects retail investor speculation, while 1h and above periods can reveal trends and find safe operational spaces.
(2) Key Position Decision: Many people trade frequently, chasing highs and cutting losses, simply because they only focus on candlesticks. High-quality trading requires high probability and high risk-reward ratio. I switched from naked candlesticks to relying on Bollinger Bands. When the candlestick touches the upper and lower bands, these are key positions—here is likely to be a point of emotional reversal, with a high probability of success; it also allows for easy stop-loss setting and sufficient profit space, while naturally avoiding low-quality opportunities in the middle area, preventing the numbness and negative emotions brought by frequent trading.
(3) Go with the Trend: Short-term traders can easily feel lost just by looking at daily candlesticks, but can apply Bollinger Bands to daily and weekly charts. If the daily candlestick falls back a distance from the upper band, only short positions should be taken in the 1h period; daily candlesticks are more stable than 5min and 1h. If you don't understand the daily candlestick, look at the weekly candlestick, relying on the trend of a larger cycle, combined with the position and shape of the 1h period to enter, and not to go against the trend, so as to step accurately to the market rhythm. $BTC $ETH #哈佛增持以太坊 #PEPE突破下行趋势线