Trends and oscillations
In the trading market, many investors adopt a strategy where they first assume that there is a clear trend in the symbol they are currently operating on, and then try to buy and sell following this trend. However, I don't think it's always wise to do so. On the contrary, a better strategy should first assume that any symbol being operated is in an oscillating state, that is, repeatedly fluctuating between highs and lows.
When we take such assumptions, we need to carefully observe and analyze the market data to determine if this variety is really trending or if there are signs of developing into a trend. Once we confirm the existence of a trend, we can assume that all *** are only temporary corrections, and each correction is a good opportunity to rejoin the trend.
We can't easily abandon a developing trend just because there are some. We need to be patient until the trend is clearly over. During this period, we should remain vigilant and pay close attention to market dynamics in order to react in time when the trend changes.
With such a strategy, we can operate more steadily in the trading market and avoid losses caused by blindly following the trend. At the same time, we can also better grasp the opportunities in the market, hold with confidence and obtain greater returns after confirming the trend.
Breakouts vs. false breakouts
In the trading market, breakouts vs. false breakouts are an important issue. In the ** market, most breakouts tend to be false breakouts, which are caused by the uncertainty and volatility of the market. Therefore, in trading, we need to assume that most breakouts are false and then assess whether the breakout is true by observing market movements and trading signals. In this process, every false breakout is a good time to backhand because they provide an opportunity to re-evaluate the market and trading strategies.
However, in a trend market, all turns should be considered unless a certain limit is exceeded. In this case, all breakouts should be considered true breakouts, as the market trend is clear and continuous. Therefore, in the trend market, we do not need to think too much about the problem of true breakouts and false breakouts, but need to pay more attention to the trend and magnitude of the market.
In general, in the trading market, the question of breakouts and false breakouts needs to be analyzed on a case-by-case basis depending on the market trend and trading strategy. In the ** market, we need to be vigilant and carefully evaluate the market's breakout signals; In a trend market, we need to pay more attention to the trend and amplitude of the market in order to better grasp trading opportunities. Through continuous learning and practice, we can continuously improve our trading skills and strategies, so as to better cope with market volatility and uncertainty.
Dynamics and constraints
Constraint is a combination of "elasticity", support and resistance, and so on. The problem is complex and can be summarized simply: there are many mathematical quantitative analyses of how they are nested within each other over different time periods, and there are many laws that are not yet widely known. Among them, the most important are motivation and constraints. This is the thread that runs through it all. It is primarily a micro issue, but it is the detail that determines the big picture. This is the cornerstone of the right trading system, and it is a core part. Of course, the details of the core are not included here. The details need to be built separately.
Whether it is a trend-oriented medium and long-term trader or a **type** trader, they are afraid of a trend:Extended flare. It is a sharp pullback after a breakout, then a reverse breakout, a pullback again, and a two-way false breakout repeatedly.
Trend traders can't do anything about it, the best thing to do is to wait; Oscillators also have a lot of headaches with it, as it breaks through the range boundary on the traditional pattern every time and then forms a false breakout.
The ideas put forward above are actually just the reversal of ordinary thinking, but they are very effective against this extended trumpet trend.
According to this direction, you may wish to refine the specific strategy in your own trading system.
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