Friends often ask, teacher, I am doing short-term now, which cycle should I look at, or what cycle should this technology be used for, the effect is the best, and other questions about the cycle, and the primary and secondary levels are also asked by many friends, but There is no good answer to the question, let us find out together today, what is the primary and secondary level
What is the primary and secondary level?
The market is running every day, but there are always some markets that are important and some that are secondary. Then, how to distinguish which market is the main one and which market is secondary has become our top priority. If you don't distinguish, then treat all market conditions as an important level, then you will not distinguish between primary and secondary, and you don't know when to do what.
For example, in the situation in the picture above, if D has hit 1.382 of CB, then it can be confirmed that the upward trend is formed, and at this time, at the same time, point G has also reached 1.382 of FE, then it can also be determined that the downward trend is formed. At this time, If there is no distinction between primary and secondary, then how to operate the market?
Whether it is too much or not has become a very important issue in our operation.
How to define primary and secondary levels
The definition of primary and secondary levels is as simple as it is said, and as complicated as it is complicated. The principle to follow is whoever is bigger is the master, and whoever is younger is the assistant. It can also be said that whoever is included is the assistant.
First of all, let's talk about the cycle. The large cycle is the main level, and the small cycle is the secondary level. For example, if the daily line is compared with the 4-hour line, then the daily line is the main level, and the 4-hour line is the secondary level. Because the daily line contains a 4-hour trend.
Let’s talk about the same cycle. In the same cycle, the main thing is to look at inclusion.
The same cycle and the same direction include
In the figure, ABCF, this is a rising market, in which, F hits CB's rise of 1.382, but at the same time, F also hits DE's rise of 1.382. At this time, ABCF is the main level, and CEDF is the sub-level. One of the very important factors is that the big one includes the small one.
This means that the rise includes the rise, and if the fall includes the fall, then it is the same. Whoever includes who is the main level, and the included is the sub-level; but note that if the market is rising includes falling or falling includes Up, it's different.
Different directions in the same cycle include
In the above figure, we pay attention to see that ABCD is the prototype of an upward trend, but at the same time, DEFG is the prototype of a downward trend. First of all, the rise includes the decline, so it can be defined as the rise is the main trend, and the fall is the main trend. It is a secondary trend, but at the same time, it should be noted that the main level cannot end. What does it mean? Now that the rise includes a fall, then this fall cannot hit the effective point of the rise. If it hits the effective point of the rise, it proves , the rise has ended, and the fall is the beginning of a new trend, there is no containment relationship between them.
Because the primary and secondary levels distinguish trends, if there is an upward trend and a downward trend, it can naturally be divided into inclusion relationships, but if the upward trend has ended, then the downward trend is a separate trend, and there is no need to distinguish primary and secondary levels. , after all, there is only one trend left, and it cannot be both the main level and the secondary level.
After learning to distinguish between the primary and secondary levels, you must learn what kind of influence it has on the evolution of the trend when the primary and secondary levels exist, and what variables are there in determining the buying and selling points. After all, it is not important to distinguish between the primary and secondary levels , the important thing is that after knowing how to distinguish the primary and secondary levels, how to apply it to your own analysis.
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