A supply and demand trading strategy is a trading strategy based on the trading behavior of large funds. Big money is the main force in the market, and their trading behavior often has a significant impact on the market. The core of a supply and demand trading strategy is to identify supply and demand zones and trade within them.
The supply and demand area refers to the area where large funds accumulate chips. **Grid falls back to this area, and big money will push again***
The way to identify supply and demand areas is to look for more than three large ** in a row. If these ** are in the same direction, the area can be considered to be a supply and demand area.
Trade in the supply and demand zone, with the option to enter the zone on the upper, middle, or lower edge of the zone. You can also wait for a confirmation signal to appear near the area before entering.
Here are the specific steps of the supply and demand trading strategy:
Look for more than three large ** in a row.
If these ** are in the same direction, the area may be a supply and demand area.
Select the entry point in the supply and demand area.
4.Set stop loss and take profit.
Part II: MACD+OBV Indicator Strategy
The MACD+OBV indicator strategy is a strategy that uses indicator divergence resonances to trade. The MACD indicator is a trend indicator, and the OBV indicator is a volume energy indicator. When there is a divergence resonance between these two indicators, it indicates that a trend reversal is possible.
The trading rules of the MACD+OBV indicator strategy are as follows:
Bullish rule: The MACD indicator is below the zero line and has a bottom divergence from the trendThe OBV indicator also diverged from the trend of **.
Bearish rule: The MACD indicator is above the zero line, and there is a top divergence from the ** trend;The OBV indicator also diverged from the ** trend.
When the above conditions are met, you can enter the market at the ** price corresponding to the MACD energy column body to the virtual bar. The stop loss can be set above or below the ATR line. Take profit can be selected in batches.
Here are the specific steps of the MACD+OBV indicator strategy:
Check if there is any divergence between the MACD and OBV indicators.
If there is a divergence, this area may be an opportunity for a trend reversal.
Admission is made at full entry time.
Set stop loss and take profit.
Part 3: Strategy Summary
The supply and demand trading strategy and the MACD+OBV indicator strategy are both practical trading strategies. The supply and demand trading strategy is suitable for use in ***, and the MACD+OBV indicator strategy is suitable for use in trend**.
Before using these strategies, it is advisable to backtest them to understand their long-term performance.
Risk Warning
There are risks associated with any trading strategy. Before trading, do your risk management.
Conclusion
The supply and demand trading strategy and the MACD+OBV indicator strategy are two more practical trading strategies that can help investors make profits in the market. There are a few things to keep in mind when using these strategies:
Do a good job of risk management.
Conduct backtesting to understand the long-term performance of your strategy.
Use your strategy flexibly and adapt to market conditions.
The strategy comes from the speculative lab).