How to build a trading system

Trading logic: scale up and scale down— a 5/20/60 double moving-average, double-period resonance trading system

Step 1: Determine the trend

An N-shaped structure, Elliott Wave Theory, Dow Theory: higher highs and higher lows, lower highs and lower lows, ranging and consolidating; use the 5, 20, and 60 moving averages to judge.

Step 2: Find key levels

Identify support and resistance levels, high-volume (most-concentrated) areas, supply-and-demand zones, and draw trend lines.

Step 3: Confirm the signal

Candlestick patterns: engulfing, PB breakout, strong bearish candle/strong bullish candle, head-and-shoulders top/bottom, W bottom/M top, and continuation patterns.

Step 4: Find the stop-loss

For long positions: stop-loss at the low point; for short positions: stop-loss at the high point—strong bullish/bearish candles, and the respective higher/lower highs and lows.

Step 5: Find take-profit

In an up move, look for a pullback to buy; in a down move, look for an upswing to sell.

Content is for educational purposes only and not investment advice#交易 #芝麻开门 #超短线 #ETH