Putting aside levels to discuss trends is just playing the fool!!

If someone often asks you whether to go long or short now, then they are a big fool. If you often answer their questions without thinking, then you are an even bigger fool. Why? Because putting aside levels to discuss trends is just playing the fool.

For example, if you open the daily chart of Bitcoin, the three moving averages show a bullish trend. The theory of trading tells us that we are not at the end, and the MACD has not diverged, which indicates that we should go long; going long is the wisest choice. We should follow this big trend and go against this small trend.

However, when we open the 4-hour chart, the market begins to become unclear, the three moving averages are neither bullish nor bearish, and start to intertwine. Those who have studied our system’s naked K course know that this is one of the trading ranges in the market where there is no trend, so both going long and short are possible, which means within the trading range, you can short high and long low, treating every rise or fall in the trading range as an absolute reversal. Drawing a trend line to indicate the reversal from short to long at position 1 aims to capture the profit from the upcoming rise at position 2, while the reversal at position 2 from long to short aims to capture the profit from the upcoming fall at position 3.

Similarly, now that the market has once again reached the bottom of the trading range, we need to go long on the upcoming fall at position 5, where the reversal from short to long aims to capture the profit from the unseen rise at position 6, so going long now is the wisest choice.

If we open the 20-minute chart, we will find that the three moving averages are in a very clear bearish arrangement, and this falling power is also very strong, representing a good trend. This is what we often refer to in our recent training camp as "good big brother," and the most recent bullish trend is showing weakness, in line with the characteristics of a corrective trend. Thus, the bias we derive from this 20-minute chart should now be to go short, as going short is the wisest choice. We should follow this big trend and go against this small trend.

So, you see, the cycles and levels we discuss are different, leading to different biases for going long or short. This is what it means to say that putting aside levels to discuss trends is just playing the fool, and putting aside levels to discuss going long or short is being very clever.