PointAndFigure.png Diagramming Point-and-Figure, At this point, we must have started to learn how to create a point and figure diagram on chart. The equipment needed to create a diagram is a graph book (Which has a square grid used in childhood when the teacher asks you to graph it.) But some people might say that nowadays there are computers. As well as a program to manage diagramming, Points and Figures, why do I still need it? (Is it obsolete? ) But in our opinion, Understanding the basic principles would not cause any damage. To have understanding and expertise first, then use a computer to help create a diagram later. It should be added to the user. More proficient and believes that the computer-generated diagram sometimes difficult to consider Because the image is too small for those who have used graph books to create diagrams. There might be some way to solve this problem. The first step in creating a diagram It\u0027s about setting the size of the box (box size) that each box is equal to how much. The easiest way is to set a box size equal to the price change or spread in stock trading. For example, if the stock price is between 5 euros and 80 euros , the box size will be 5 euros , which is equal to the change of price when trading stocks, etc. However, in practice, the box size is set at the trader\u0027s discretion. To be able to lead can be used for analysis effectively But there is a little reminder that the size of the box size will affect the sensitivity in change in price direction If the value is less The change in direction will be faster. Therefore, choosing the size of the box size should be related to the range used in the study on chart for trading. For example, if wanting to study price movements in the long term, choosing the size of the box size is should be larger than usual, etc. The second step should be to understand how to enter prices into the table. As well as the rules that need to be known to create a diagram in order to understand the rules. Including the rules along the way Take a look at the following example. Suppose that the stock price is now 15 euros, we record the value of 15 euros, but not as a numerical value, but instead using the X or O symbols. After the price of 15 euros, the stock price moves in which direction because the symbols X and O have different meanings, that is, if the price moves up, then the symbol X is assumed. That the price moved up to the highest price level of 40 euros and closed at this price level as well Will we really get 6 more X symbols? (Example picture) Because each box used to record the X value has a box size of 5 euros, so when the maximum price changes to 30 euros, the amount of X that has been added. So there are 6 of them. On the other hand, if the stock price falls from the price level of 35 euros to the lowest price of 10 euros and closes at this price level, the symbol O will be used to record the value. (sample image) Arrived at this point lets us know that Which symbols are used in which cases? And for ease of explanation, I would like to explain in case the stock starts with row X first, assuming that the next day the price is still rising. With a maximum price of 65 euros, we don\u0027t have to do much. In addition to further record prices up to the price level of 65 euros. But if the highest price on the 3rd day does not exceed the highest price (65), for example, at 65 euros, we must turn to consider that. Is the Day 3 Low below the High (65) for at least three price movements? In this case, assuming a minimum price of 55 euros is not less than three periods of price change. Which is worth 10 euros here, just sit there without recording anything. On the other hand, if the lowest price on the 3rd day is at 15 euros, which is below 65 euros, down more than 15 euros, in this case, start recording the O symbol in the column to the right of the X column starting. Record in the box that is one box below the highest price box X, as in the example of chart image above. You are probably wondering what 15 euros used as a criterion. Where did the change of the X symbol to O come from? Indeed, it is a popular rule. This rule is called Three-box reversal, derived from the value of three times the box size, which from the above set the box size equal to 5 euros, so Three-box reversal is equal to 15 euros, but if anyone wants to change the rule This reversal can be any value other than 3 times the box size, but it should be looked at. Once changed, does the diagram that emerges have any significance in considering price movements? Or provide a price pattern that produces a buy or sell signal at Is it reliable or not? If it works better No one would forbid it! In addition, another thing you can notice is In low and figure recording, there is nothing to do with the closing price, it follows the point and figure principle on chart in which only the highest price is taken into account. Only with the lowest price. But if on day 1 we are now in column with O instead of column X as above, this is due to the drop from 60 euros down to 45 euros and if the lowest price on that day 2 is 15 euros, we continue to record the symbol O down to 15 euros. However, if the lowest price on day 3 is 15 euros, which is not lower than the lowest price (15), it must be considered that Is the highest price a Three-box reversal? If the highest price on the 3rd day is 20 (still less than 15 euros), nothing to do, but if the highest price on the 3rd day is 70 euros, then the reversal begins. In recording, it changes the symbol from O to X, which starts recording in the column immediately to the right of column O and begins in the address field. Higher than that of the symbol O record up one channel (As shown in the example picture) However, sometimes the price dynamics are quite wide, for example, the high on the 10th day is higher than the high. Something currently recording on day 9, but looking at the lowest price on day 10, it\u0027s worth more than three-box reversal if the rules are followed. Would continue to record the number X until the maximum achieved on the 10th day, regardless of the resulting minimum, but if it did so It may seem to ignore what might turn out to be a significant reversal signal. And then move the column to the right To save the symbol O or perhaps use the method to save X until the highest price. And move the column to the right and save as a symbol, use fish to go down Instead of using the O signal as a warning that Significant reversal occurred. Appeared during the day. point-and-figure-4.jpg
1*03ly9-LoF1WLHXsxPcVEPQ.png Point-and-Figure diagram It is another method of technical analysis which has been popular for a long time. The format of the diagram for the analysis This point-and-figure is quite different from the diagrams used in most technical analysis of bar charts because in bar charts, the horizontal axis shows the time. Which when we look at the picture, we will immediately know that on some day in the past This is the highest and lowest opening and closing price of that day, and one bar chart represents trading for 1 day (in the case of a daily chart) or maybe 1 week (in the case of a weekly chart), which is of course fixed. But in the diagram The point-and-figure price action is represented by the letters O and X as shown in the example figure. Although the graphs that are seen look like bars as well. But we can\u0027t say that. Discard that bar how long does it last Because as long as there is no change or reverse direction price action is still displayed in the same bar (O or X), so one bar May display data for several days. This is like a compression mechanism. (compression) to see the price trend in another form. An important by-product is This compression mechanism It filters out price movements that are random (noise) and not related to the trend. It gives us a clearer picture. point-and-figure-chart.jpg
FWKa3IZVEAEyqnm.jpg There is another form, gaps, which some people call windows or gaps pattern. In fact, it is definitely not a continuous pattern or a reversal pattern. Well, it can be in many ways, both continuous and reversal. What will this gaps pattern look like? How to notice And what can it tell us? I\"ll take you to find out. The word gaps as we all know that it means gaps or empty spaces, which in technical analysis has the same meaning. Only there is a little more indication that The gap is a result of buying pressure (demand) and selling pressure (supply) unable to set prices. Compared to the price range of the previous day And until the buying and selling pressure meet, it will cause the agreed price. Stay away from the price range of the day before going out. And price movements that day can\"t come can close that gap Therefore, when we look at some of the graphs in the analysis, we can see that it looks like a gap. Can you imagine today\"s open price If it is above yesterday\"s high for a while, you will find that it will undoubtedly create a gap. And price movements that day did not come down to close the period or vice versa If today\"s highest price It is below yesterday\"s low for some time. You will probably know that. That range is that gaps themselves. Usually, gaps in an uptrend are a sign of market strength, while gaps in a downtrend are a sign of market weakness. However, there are different types of gaps. Some are important, some are less, and gaps can be closed in some formats. As a result, the significance of these predictions varies. I would like to explain to you the types of gaps and the meaning behind each gap. There are generally four types of gaps: Common Gap, Breakaway Gap, Runaway Gap and Exhaustion Gap. 19_4_ee371e0a7c.png
However, doing the analysis Knowing only the above pattern may not be enough Since sometimes we need to set point of buying and selling point, how do we know when to buy? While the trend is an uptrend, the answer that many people would say would be BUY ON SLOW. I would continue to ask: How much downward is acceptable in an uptrend? The main or method to solve such problems is Using trend lines, this will be your tool. Values for trend analysis From above we have separated the trend into 3 types, so there are 3 types of trend lines to be used as follows: UptrendSampleImage.png 1. Uptrend line The principle is not difficult at all. That is to say, the beginning We will draw a line from point 1 to point 3 (red dot) leaving the end of the line past point 3. This line is the uptrend line for the significance of this line. Or simply whether the leather is tough enough or not, it starts at the number 5 (red dot), which if the price can rebound at the number 5, that would indicate a significant uptrend line. If the price has adjusted down near this line again. It will use the predicted level on this line. Is the point used in Entering the spoon to receive shares again, such as number 7 (red dot) DowntrendSampleImage.png 2. Downtrend line The principle is reversed from the above in the sense that the line will use the old peak and the new peak as a point in the draw line, starting from point 1 to point 3 (red point) (if observed, it will find that the point 1 and 3 here are the vertices, as opposed to in the case of uptrends, which are the bottoms.) That\u0027s the difference in trend line formation. In terms of uptrend and downtrend, the measure of significance is looked at number 5. (red dot) If the stock price fails to cross the up downtrend line and has a downtrend following it, we call this downtrend line significant. This line again at point 7 (red dot) is the level where a sell-off is expected. If point 7 (red dot) still fails to break through the downtrend line, it will strengthen the downtrend line even more. trend-channel-780x482.png Parallel line, In addition to the trend line mentioned above There are times when it is necessary to create a parallel line for the reason that there are cases when the price is clearly moving within the framework of the parallel line. Thus giving rise to a technical term came up another word is channel (hereinafter called flow pipe) I don\u0027t know if it will make the picture clearer or not? The principle of drawing parallel lines is not difficult at all. From the picture, use point 2 (green dot) as a starting point. Then draw a line parallel to the uptrend line, as shown in the figure, using point 2 (green dot) as the starting point parallel to the downtrend line, which will act as resistance in the uptrend form and will act as a resistance line. Support for downtrend images. SidewaysTrendSampleImage.png 3. Sideways is movement without direction. Is not markedly So the trend line in the case of sideways is relatively smooth, parallel to the ground (flat) and the channel in the case of sideways is like Pipes placed parallel to the floor, see from the picture because it can be seen that the flow of prices or index will be under the formation of a flow that lies horizontally which the price movement along the flow pipe sideways horizontally like this It is the origin of the name sideways. trends-and-channels-1606726702.png
Crypto trading is a type of trading and therefore we should admit that as well as in classic trading, crypto trading has its own index. The index reflects the condition of market of crypto currencies, based on average market indicators. As in classic trading, the index in crypto trading formed on data from the most liquid tokens. The amount of taken tokens displayed in the title. If there’s a number 10, then it includes 10 different crypto currencies. The change of every of these tokens has a high effect on the index. crypto-trading-index.jpg The growth of the components of the index therefore the index will be rising. If the rate of crypto currencies is decreasing, then the index will be cheaper. Index is kind of basket of several components. Crypto trader can choose which components he wants and monitor all of them. You might need an index chart to analyse the market. If the index is most common, then the chart will be shown in the appropriate resource. But what if the index of trader portfolio investment is individual? For creating such index, the Hydra program will be indispensable. Hydra can collect the volume of each assets, calculate, and build the necessary index, moreover you can use this index in other programs just by saving it in your desirable format. The gotten index can give you detailed and comprehensive data of the market condition. Furthermore, to work with index will give traders the opportunity to analyse the market perspective and any assets. The trader gets more effective system of crypto trading and therefore to get more benefits and reduce risk. crypto-market-analyses.png