1, break through the opening position
Breaking through the opening is a common method of homeopathic trading, using support and pressure to break through, that is, when the market price breaks through the previous high or low, choose to enter the market to do long or short.
This method is mostly used in markets with obvious trends, that is, when there is a market. The advantage is that you are sure of the trend, but at the same time there are hidden disadvantages here, and there may be false breakthroughs. So stop loss is necessary.
Commonly used tools are trend lines and channels.
2. Call back to open the position
Callback opening is a common method of contrarian trading, which is often used to shock the market. Most of the time, the market is in a volatile market, and learning to find opportunities to open positions in the volatile market is the real way to promote trading.
The so-called callback opening, in fact, is that after the breakthrough occurs, there will often be a callback phenomenon, waiting for the market price to break through the opening position in the same direction for the second time. This method can also verify the false breakthrough to some extent.
Commonly used methods include chart entry and opening with Fibonacci callback line, and usually there are pending orders. We will analyze pending orders later.
3. Open positions with impact indicators
The last method is to open positions through shock indicators, which I can't classify into the above categories. Even the shock indicators are indeed lagging behind, and they often signal after the market highs or lows.
Commonly used shock indicators include MACD indicator, RSI indicator, KDJ indicator, Williams percentage and CCI indicator.