Dashige
1。 There are basically only four opportunities to open positions in the market:
The first one is to turn around and confirm,
The second is homeopathy+retracement.
The third is the extreme distance from the average price (moving average)
The fourth is a rectangular form of inside two-way trading or outside breakthrough trading.
Among them, the third and fourth opportunities are suitable for short-term operation. I can understand this opportunity, but I am too timid to do it, so I have to leave it to others. The first two opportunities are medium and long-term opportunities, which are relatively easy to grasp.
2。 When it comes to homeopathy and turning point, it must be defined within a certain period of time. My definition is: a major period and a minor period.
Combine 2-3 suitable moving averages.
3。 The so-called homeopathy means that the moving average system I define+the neckline direction is clear, and the so-called retracement means that the price approaches the above two lines or passes quickly and then returns to the edge.
I would like to remind you in particular that when the two lines of defense are obvious, the price quickly withdraws from a certain distance and crosses the two lines, never turn to the operation. Instead, you should build positions along two lines of defense after the price has stabilized. What I said may be a little complicated. This is the Grammy moving average law that people often say. I suggest that friends study it again.
4。 The so-called turning point+confirmation means that the moving average+neckline has all broken through, and the price has shown resistance (callback or sideways), so it is certain that the trend has changed and it is time to trade in another direction.
5。 In particular, I would like to make two suggestions to you:
First, generally speaking, when you can't understand the direction, that is to say, when the price belongs to the shock shape rectangle or convergence triangle, try to open the position along the shape sideline in the original direction, and most of them will break through the trend.
If the reverse breakthrough, backhand. This is clear and easy to operate. Try not to operate in two directions, and finally make yourself exhausted. This is a real breakthrough, but I dare not do it.
Second, don't easily judge that the direction has changed at any time. In other words, I would rather follow the original direction than turn to trading easily. Because the real turnaround is actually rare, accounting for only 20% of the trading opportunities, others are homeopathic opportunities. Why should we give up the opportunities with high possibility and seize the opportunities with low possibility?