Fei Yifei: How to grasp the resistance and support levels in spot investment?

　　
Often seen"To make an order on a spot, to make an order outside of a spot"Here"position"It is resistance and support level. In many people's initial trading, they first try fundamental analysis, and the results show that after all, free traders have limited effective information and cannot achieve the goal of making money in the short-term time frame by accurately grasping the fundamentals.
　　
So these traders will gradually pick up"Price reflects everything"The technical analysis creed. Therefore, using technological analysis to identify market trends and key locations for entry and exit has become a top priority. The following is an important and commonly used trading strategy in this technological trading mindset. This trading strategy can also be said to be the basis for analyzing the operation of trading systems through axis point systems, Fibonacci segmentation systems, and other resistance support systems. So I hope investors can gradually understand the trading ideas provided, and then build their own direction and position trading system.
　　
This type of trading system is generally very simple: short at resistance level (light position), long at support level (light position), backhand long after breaking through resistance level (heavy position), and backhand short after breaking through support level (heavy position). Usually, it is necessary to open positions in the opposite direction of the market movement at key positions, break through key positions, and then operate in the market direction. This type of system is both a reverse system and a trend system, suitable for both interval and trend markets. If we can use other technical tools such as candlestick charts to identify the effectiveness of breakthroughs, then we can selectively operate without blindly following through"Reverse first, then follow the trend"Operation, we will face frequent false breakouts in trading. When false breakouts occur, we need to decisively close the orders chasing breakouts. Of course, this requires the use of other technical tools for judgment.
　　
The resistance level and support level need to be determined first, and then the operational strategy is determined based on the position and direction of the price in these ranges, followed by specific execution. For the determination of resistance and support positions, we adopt the following methods:
　　
　　1The upper and lower edges of the densely traded area are the positions of resistance and support levels
　　
　　2The high and low points in the early stage are also the positions of resistance and support levels
　　
　　3When the price moves towards the previous trading intensive area, the previous trading intensive area puts pressure on the price, which is also the position of resistance and support levels
　　
　　4Fibonacci callback and extension line positions
　　
　　5Key positions determined by the axis point system
　　
　　6The highest and lowest prices from the day before yesterday, as well as today's opening price
　　
Specific operation consultation fee, Teacher Yifei's prestigefyfai8The steps are as follows:
　　
　　1When the price is in a trading intensive area, the upper edge is resistance. When it breaks through the upper edge, the traders in the trading intensive area will feel comfortable because they have made money, and the possibility of continuing to increase their positions and long positions will increase. At this time, the bearish direction in the trading intensive area will be"A heart lifted to the throat"Because he lost money, he is likely eager to stop the loss, so he will close the short order. In this way, there will be two forces to break through the upper edge, one is the power of multiple orders, and the other is the power of flat orders, both of which are the driving forces for prices to continue to rise. At this point, I will"Breakthrough resistance level, backhand long (heavy position)". Similarly, when breaking through the lower edge downwards, there will also be downward force. If the breakthrough at this point does not develop in the expected direction, it indicates that investors do not recognize this direction, and if they do not recognize this direction, they will naturally have to move in another direction, and the price will explore the other edge."When there is a false breakthrough, it is necessary to decisively close the orders chasing the breakthrough and open new positions with a backhand approach". If one direction is not recognized, the price of a book will move towards another edge or even break through. At this time, the breakthrough is usually a true breakthrough, after all, the possibility of lama form performance may be relatively small, and lama form is only generated when investors are crazy.
　　
　　2The price will break out of the transaction intensive area and rush towards a distance from the transaction intensive area. This distance is our profit. The speed of this rush will be very fast, and it is necessary to complete the closing and backhand opening actions at the beginning of the rush (breakthrough). This is faster than who strikes the order, and sometimes it is almost too late. Therefore, I suggest that investors who are timid should not hang short orders on the edge of the densely traded area, but wait for them to break through and build long orders. After the price breaks out for a certain distance, the market will return to calm and form another densely traded area. At this time, the trading volume will be much smaller than when it came out. At this time, we need to level the profit orders, rest and wait for the next profitable opportunity.
　　
　　3Breaking through the resistance level, there may be a rebound situation after reaching a high point. At this time, the rebound will have the original resistance level converted to a new support level. At this support level, you can go long. If it breaks, close the position and make a backhand.
　　
Disclaimer: The above article was written by Fei Yifei, Chief Analyst of Hubei Qianguanfeng, and is for reference only and does not constitute investment advice. Investment carries risks, investors should operate with caution. Please indicate the source when reprinting.