Anyone who has done crude oil trading knows that the market is nothing more than the ups and downs of commodity prices. Understanding the market means understanding the price trajectory. Generally speaking, there are only two states of price operation: trend state and consolidation state.

From the morphological theory and K-line combination theory, we can see that the consolidation state is characterized by the price fluctuating up and down within a certain range, without rushing to the high point or breaking through the low point. It can also be divided into short-term consolidation, medium-term consolidation and long-term consolidation.

The consolidation pattern often changes from large price fluctuation to small price fluctuation. The consolidation state is only temporary, which may be a break on the way up or down, or a preparation before a round of market reversal.

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Those with strong risk tolerance can follow the trend market, and those with low risk tolerance can take short-term trading, that is, it is more effective to pay attention to daytime fluctuations, and it is also a better choice to throw high and suck low.

While reducing the risk, the income will also be reduced, so it is particularly important to pursue the accuracy of each shot. Every little makes a mickle, and the profits are considerable. At this time, the appropriate setting of stop loss point is also a problem that short-term people should pay special attention to.