On the evening of December 12th, AICoin researchers conducted a live graphic and textual sharing of "Mastering Trend Lines: 2B & 123 Rule" in the AICoin PC End-Group Chat-Live. The following is a summary of the live content.

I. Use of Trend Lines

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2. Constructed 2 trend lines

3. Drawing of trend lines

For smaller time frames, you can choose to connect nearby tops and bottoms to form a line segment; based on the connected tops and bottoms, corresponding trend line segments can be constructed.

II. Components of the 123 Rule

1. As shown in the figure: the corresponding components of the 123 rule

2. Elements include

• Trend line breakthrough
• No new highs in an uptrend, or no new lows in a downtrend
• In an uptrend, price crosses the previous short-term pullback low

2. Combining BTC analysis, the selling point in the figure is 3; if 3 appears, it indicates a fundamental change in the trend.

Breaking the trend line forms 1, but subsequently breaking through the trend line without forming 2, we then adjust the trend line.

4. Explanation of using the 123 rule

   (1) The following figure shows the changes in the 123 rule, while still meeting this condition

   123 General Rule:

   Trend line breakthrough No new highs in an uptrend; no new lows in a downtrend In an uptrend, price breaks below the previous pullback low; in a downtrend, it breaks above the previous rebound high

   

   (2) In the following figure, 123, pay attention to the positions of 2 and 3

   In fact, when breaking through the trend line to 2, it is an early entry of the 123 rule; 3 of the 123 rule can be considered as an additional position, and the current 3 indicates a trend reversal; this is also the basic form of the 123 rule.

   

   (3) The following figure shows a very small oscillation pattern

   

   As indicated in the figure, 123

   

   Sufficient if it meets 3 elements:

   Trend line breakthrough No new highs in an uptrend; no new lows in a downtrend In an uptrend, price breaks below the previous pullback low; in a downtrend, it breaks above the previous rebound high

   (4) Reversal of the trend on a large time frame is shown in the following figure

   

III. 2B Rule

1. Trend line trading

Regarding trend lines, AICoin's latest version has launched trend line trading

Enter the relevant amount for crossing the trend line to place an order, and you can automatically place an order to cross the trend line to avoid missing out on the market

2. Formation of 2B and the possibility of breaking 2 new highs

2B is generated due to a change in the trend.

There are several possibilities for breaking 2's new high:

Breakthrough of the new high, but unable to continue, may form 2B; The new high fails to break through, forming 2; Strong breakthrough of the new high forms a true breakthrough, creating a new trend.

3. Basic explanation of the 2B rule in the schematic diagram

Point B in the figure is the 2B of this structure, and also the structure of the 123 rule.

Using the 2B rule to find entry points in advance, specific operational methods:

When the trend forms 1 and 2; Find the previous high point before the new high; When the pullback from 2 falls below the previous high point before the new high, this 2B point is a very good selling point and the initial entry point; In the 123 rule, 3 is the related selling point, but relatively late.

4. How can smart money entering the trend use the 2B rule to obtain earlier selling points?

Step one, explore the relevant previous high points

Step two, draw a horizontal trend line

Step three, if it falls from 2 and touches the horizontal trend line, it is the first selling point

After entering the position, continue to pay attention to

If it reaches 3, it can be considered as an additional position

You can click the link below to update the latest version of the PC end to experience trend line trading: https://a1coin.info/zh-CN/download

IV. Q&A

1. How effective is using the parameters 24, 52 EMA?

   24 and 52 EMA have a certain effect on market prediction, especially focusing on the 30-minute, 45-minute, 1-hour, 4-hour, and 8-hour time frames.

2. Are the 2B & 123 rules applicable to all candlesticks?

   Yes, this rule is applicable to any candlestick and is also extended from the traditional market.

3. When building a position by falling below the previous high point before the new high, will it continue to fall below the position of 3?

   It is possible. If this situation occurs, it means that the trend has not yet formed a major reversal. Any technical analysis is based on high probability events, and this rule uses low stop-loss to seek high returns!

Recommended Reading

1. Recognizing market trends through liquidation charts and estimating future trends by main forces

2. Opening a new era of automated trading in oscillating markets with the TD indicator

3. Bomei Academy: Exploring on-chain DeFi to obtain excess investment returns

For more live content, please follow AICoin's "News/Information-Live Review" section, and feel free to download AICoin PC End

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