Investing is one of the ways many people get wealth, but it needs to be treated with caution. ** Don't just take shortcuts, but think about long-term resource allocation and wealth growth. Successful investors will form a set of trading patterns that suit them and gradually become proficient. This article will explain how to use the indicator to trade, and turn it into a strategy to raise a family in the face of losses.
There are many indicators that mark the movement of stock prices in trading, among which ** is an important indicator. Different lengths have different effects, such as 10 days**for **, 30 days** for the middle line, and 250 days **for the long line. However, few people know that the 60-day ** also plays an important role as a medium to long-term transition line, especially in revealing the intentions of the bookmaker. Once the stock price falls below the 60-day**, it can be considered that the entire rally is over and the decline is about to begin. This is a law that exists in many **. Therefore, we need to pay close attention to the situation where the ** in our hands falls below the 60-day line, especially after a large rally. After falling below the 60-day line, the decline in stock prices tends to last for a longer period of time. In the case of uncertainty whether the stock price has started to decline after falling below the 60-day line, there are other important auxiliary techniques to determine the top.
Before preparing for one, it is usually necessary to judge the general trend of the entire market, that is, to determine whether the market is in a bull market, a market or a bear market. Everyone's criteria may be different, but I often measure them by the relative positions of the 30-day and 60-day lines. When the 30-day line and the 60-day line are towards the upward inflection point, and the 30-day line crosses the 60-day line to form a golden cross, we can consider it to be a "swing bull market", on the contrary, when the 30-day line and the 60-day line have no clear direction, basically flat or slightly upward, and continue to stick, we can consider it as a "swing market";When both the 30-day and 60-day lines are pointing downward, and the 30-day line crosses below the 60-day line to form a death fork, we can consider it a "swing bear market".
After a long period of stock prices, there is often a situation where the stock price stops falling and rises. When the stock price crosses the 60-day **, it means that the stock price has entered an upward channel, which can also be called the "take-off line". Only when the stock price stands above 60 days will it be possible to get out of the trend and enter a sideways or uptrend. Therefore, we call "unreasonable operation" under 60 days*** and "reasonable operation" above 60 days***. It is worth mentioning that if the stock price is moving more than two times in parallel during the upward process, especially running to the upper right, it means that the market is in a stable bull trend, which is a safe signal to hold shares.
Transactions are not made every day, there must be a reasonable reason and proper timing. In addition to trying to make money, traders must also try to avoid losing money. Therefore, probabilistic thinking is essential for traders. Actively participate in high-probability events while working to prevent low-probability events from occurring. Even if a trader has made a lot of money in ** before, if this probabilistic thinking is lacking, the next black swan event in the market may beat him in one fell swoop. Therefore, traders need to constantly learn and Xi and think, and establish their own trading system and decision-making basis.
To sum up, trading needs to be treated with caution and cannot be just opportunistic. The use of indicators for trading can better guide the judgment of trends and trading decisions. At the same time, traders need to master probabilistic thinking and strive to participate in high-probability events to avoid low-probability events. Only by taking long-term resource allocation and wealth growth as the idea, shorting positions at the right time and seizing the bottom opportunity, can we obtain reliable profit opportunities.
* It is the possible, if not the best, way for ordinary people to achieve class leapfrogging. However, it should not be a speculative mentality, but an idea of resource allocation and wealth growth. Everyone who is good at speculation will form a set of trading models that meet their own personality and risk preferences, and then become more and more handy. ** Waiting for the short position is to wait until the empty gas is exhausted, and then boldly enter the market to absorb, which will be the best choice to get twice the result with half the effort. Frequent trading is not an investor, especially not a small and medium-sized investor, so patience and observation are required.
First of all, it has a guiding role in the trend. It is a commonly used technical indicator that reflects the basic trend by calculating the average stock price over the past period of time. Different lengths** are suitable for different investment periods, such as 10 days** for short-term trading, 30 days** for medium-term investments, and 250 days** for long-term investments. In particular, 60 days** play an important role in revealing the bookmaker's intentions. Once the stock price falls below the 60-day**, it means that the entire rally may have ended and the decline is about to begin. As a result, the decline in the stock price usually lasts for some time after the stock price falls below 60 days**.
Secondly, you can use the 60-day **to judge** the trend. Before making a ** trade, it is usually necessary to determine the general trend of the entire market, that is, whether it is in a bull market, a ** market or a bear market. It can be judged by looking at the relative positions of the 30-day and 60-day lines. When both the 30-day and 60-day lines are towards an upward inflection point, and the 30-day line crosses above the 60-day line, it can be considered a bullish trend;When the 30-day line and the 60-day line have no clear direction, are basically flat or slightly rising, and continue to stick, it can be considered as a ** market;When both the 30-day and 60-day lines are pointing towards a downward inflection point, and the 30-day line crosses above the 60-day line, it can be considered a bearish trend.
Finally, you should pay attention to buying and selling skills and operational points when trading. When the stock price is in the long-term **, there is often a situation where the decline stops falling and rises. When the stock price crosses above the 60-day level, it means that the stock price has entered an upward channel. Only when the stock price stabilizes above 60 days will it be possible to get out of the trend and enter a sideways or uptrend. Therefore, less than 60 days*** can be considered "unreasonable operation", while more than 60 days*** can be considered "reasonable operation".
When it comes to trading, the basis for making decisions and thinking is also very important. Transactions are not made every day, there must be a reasonable reason and proper timing. Traders need to be mindful of probabilistic thinking, actively participate in high-probability events, and strive to avoid low-probability events. Only by establishing their own trading system and decision-making basis can they obtain reliable profit opportunities in ** trading.