Time-price balance

Key: time can go beyond price balance

 

 

1. If the price falls too deep (price bandwidth) within a unit cycle, the original balance of the price will be damaged, and the power to restore the balance is derived from the volume of transactions in a certain period of time. During the recovery period, if the transaction volume remains relatively stable and small within the relatively narrow price band, the balance is maintained to a certain extent, or after several cycles, the price may increase as the transaction volume increases.

 

2. If the price increases too high (price bandwidth) within a unit cycle, the original balance of the price will also be damaged. The motivation to restore the balance is also dependent on the volume of transactions in a certain period of time. During the restoration period, if the price is only within the relatively narrow price band at the original high and the transaction volume remains relatively small, the balance at this stage will be broken again after several cycles, the price may increase with the increase in transaction volume. During the restoration of balance, if the price is not maintained for several cycles in a relatively narrow price band, but an in-depth callback (price bandwidth) is performed, please refer to the analysis process in the previous section.

 

The balance discussed above refers to the balance between time and price. The analysis of the first two paragraphs applies to each cycle, which can be year, month, week, day, hour, or minute. However, it is necessary to clarify the truth here, your operations are correct only when the size and trend (equivalent to both macro and micro) are correct. Therefore, remember to use this principle to analyze the macro situation (such as year, month, and week), and then use this principle to analyze the micro-situation (such as day, hour, and minute) Before deciding to buy ), truly "go to the market "!

 

In general, the imbalance between time and price will lead to price rise and fall. When the time and price reach a balance, it is a consolidation. Both imbalance and balance are always relative. These two statuses will be broken or restored after several cycles. That's why investment (speculation) makes sense.