Judging the trend: crocodile line: when the jaw, teeth and lips are intertwined, we enter a wait-and-see period (crocodile rest); Line 55 is flat.
When the lip kiss (green) is above the teeth (red) and the teeth are above the jaw (blue), we enter a bull market (the jaw fish will start eating beef); Tilt up 55 degrees
When the lips are under the teeth and the teeth are under the jaw, I enter the short market (crocodiles will start eating bear meat). The slope of line 55 is downward, and only homeopathic orders are made.
Entry: 1. At the beginning of the bullish trend after the shock consolidation, when the closing price of a K-line breaks through the previous fractal, that is, the highest price in the previous band, enter the market and do more. The stop loss is set at the last lower fractal below the crocodile line.
2. In the initial stage of the short-selling trend after shock consolidation, when the closing price of a K-line falls below the previous fractal, that is, the lowest price of the previous band, it enters the market to short. Stop loss is set on the upper fractal above the crocodile line.
Appearance: Look at the market. When the closing price of a K-line breaks through 15ma in the crocodile line, you can appear. When the trend is good, you can drag the protective stop loss below the red line of the crocodile line. Avoid the data market and get the profits back.
Personally, I think the two most important points in using this method.
1. Risk limit: control within 2%. That is, the stop loss must be set within 40 points. Otherwise, I would rather give up than do it.
Single.
2. Executive ability: Don't miss every good opportunity to enter the market. Even if the market does not cooperate repeatedly, we must firmly follow the fractal.
The breakthrough came into play. And strictly carry out appearances and stop losses.
Some questions about crocodile line: 1. Can you increase 144 to the 200-day moving average? The crocodile line is also an average line, and the average line has the function of supporting resistance. The longer the period of the moving average, the stronger the support resistance. Doing so may reduce some chances of entry, but will it improve the success rate of crocodile line?
2. When you go out, can you be optimistic about some key positions such as the front high, the front low and the integer mark to avoid some unnecessary profit-taking?
3. For the time being, don't consider the problem of using crocodile line to add positions for large accounts, but if the smaller account 1000 or even 500 dollars, if the crocodile line is used for trading. When carrying out risk management, does it mean that the stop loss can only be 20 points, and the chances of entering the market are less? Or is there any other way to make up for it, so that small accounts can also carry out risk management well.