Futures trading, a good approach to buy points, generally need to follow two points:
Graphic from Zhihu @ Josilag
① Anti-weakness.
② Counter-quilt traders.
Trading logic and principles:
Behind the price movement is the result of the game between human nature and emotional power, not the cause.
When people are in a state of tension, the predictability of people's decision-making and behavior is greatly improved, and they are generally more desperate and full of urgency. This is precisely the research essence of price behavior behind naked K trading → imbalance between supply and demand.
In fact, the imbalance between supply and demand does not necessarily mean that there are more parties and fewer parties, but a desperate and urgent imbalance.
Imagine that on the beach, the behavior, location and walking route of tourists are basically unpredictable. However, when the red alert at sea suddenly sounded, whether it was a tsunami or a shark attack ... at this time, their walking route began to become easy to predict.
Find out the weakness, find out the quilt trader, enter the market against the trend, make your order a part of the order flow that triggers the trap, and make the quilt trader a price-driven fuel, so as to make a big profit from it.
As long as you have some basic understanding of the relationship between quantity and price and the concept of supporting resistance, anyone can effectively see the contents behind some charts from the disk (K-line chart).
The so-called analysis does not need complicated research, fancy forms or even staring at the disk day and night. You only need to understand the meaning of each K-line, and combine these K-lines, and you can naturally calculate some probabilities and directions.
With these basic knowledge, you can avoid misfortune ... in your investment trip.