Spot international gold is traded with margin leverage, which can be magnified 100 times per month. For colleagues with large profits, the wind direction will also increase accordingly. Once a trend is formed, it will not simply reverse, and any unexpected situation cannot change the trend immediately. When the market digests the news, it will still return to its original path.

All moves in the market are to play you and trap you.

All market movements are just to play with you. This is technical analysis. And I dare say that the operation method based on this sentence is unmatched by any currently known analysis method.

For example, any very awesome market will end in the craziest way. This is a highly probable conclusion. When you look at the market at its craziest and decide to jump in after hesitating for a long time, you are destined to be thrown to the top of the mountain or to the bottom of the valley.

For another example, the start of any market is always when people believe that it is impossible. This is the principle of breaking and then building as mentioned above. There are also head and shoulders counterattacks.

How are traps formed in the market? In fact, these traps in the market are not deliberately created by humans. These traps are the most basic manifestations of human nature. All the bad qualities and bright spots of people are reflected from here.

Stop loss is not the most critical, and you don’t need to have a good mentality, as long as you have an average opening price that you can sit back and watch. And the average opening price of sitting on the mountain and watching the tiger fight comes from the market trap. This is the most awesome type of people in the market, the dancers on the trap.

How to judge whether a downward or upward trend is forming also requires the help of traps. Let me give an example. Suppose you use the price to fall below the 30-minute 60-day moving average as the basis for the end of the short-term rising market. When the price pulls back below the 60-day moving average, you sell short. If the price rebounds correctly, the decline will be very rapid. If it breaks through the 60-day line and rises quickly, there is no need to worry. There is a high probability that the price will fall back to the 60-day line again, and at that time, you can be out with at least a slight loss.

The market moves crazily every day, and no one is willing to offer a higher or lower price. If the market wants to continue, it must break out of the secondary retracement trend and attract everyone to participate. This secondary retracement trend is very harmful. For those who are familiar with the rules of the game, it is the position to build a position and add a position. Also, if you are not familiar with it, this kind of secondary retracement can definitely kill many people. The retracement trend itself is deceptive. If the retracement trend suddenly accelerates violently on a certain day, it will come to an end.

The most awesome type of people in this market are trap dancers. The dancer on the trap simply goes against the small trend and goes with the big trend. In any market, no matter how good the trend is, there will be a retracement. This is 100% true, and retracements are extremely fierce. Positions are broken, positions are increased, and indicators go bad. I like this situation very much. The more it is like this, the more opportunities there are. For me who have little money, this is the only way I can reduce my cost of opening a position and give my position a safe price that I can sit back and watch.

The most common way to kill people in the capital market is sideways trading, and sideways trading is the biggest trap. In the sideways stage, technical analysis will be invalid. Sideways trading is often a signal that a larger market is about to occur. First, the market often makes a violent false breakthrough in the opposite direction before choosing its true direction in sideways trading; secondly, after a sideways breakthrough, it often tests the sideways range. Okay, for example, if you want to open a position during the sideways trading phase, the best opportunity is when there is a false breakthrough in the reverse direction. Even if you are wrong, there is still a backtest interval for you to escape. If you have a list in your hand and there is a floating profit, then let it go. After consolidation, there is often a high probability that the original trend will continue. Even if it reverses after consolidation, there will be a false breakthrough in the reverse direction, which can stop losses.

Using market traps to trade is undoubtedly a simple and practical way. This simple way has sufficient theoretical basis. The rules of the game in the futures market determine that any market situation is inseparable from traps, and no technical indicator will tell you what the future will be like. They are just followers of the market, so they have no confidence in the minds of traders. But the trap can tell you that the market has run out of people and you must take action.