How to locate your trading rhythm

Old Xu traded those things (pattern trading method)
老许交易那些事1

Lao Xu also often communicates with clients, and finds that most of his friends have more opportunities to do short-term, and the questions he often asks are whether this one can enter, and that one can enter! When can I enter?

I believe this is a question that many retail investors are concerned about! Right!

In fact, whether you can enter and when you can enter are all results. If our trading friends want to make stable profits, we should not only focus on the results, but should care more about the internal logic and thinking. Only the internal thinking and logical thinking It is clear that even if you lose money on a single transaction, the accumulation of time will most likely result in a final profit! Is it right?

What kind of rules will the market operation follow? Lao Xu believes that the fluctuation of the market is a cycle from the accumulation of kinetic energy to the release of kinetic energy, so you can see that the market generally adjusts in shocks, then breaks through and rises, and then adjusts in shocks, and runs repeatedly in breakthroughs and rises!

At this time, there is a problem, whether you do shock adjustment or breakthrough pull up depends on your system and your trading cycle! When your system and cycle are consistent with the stage and cycle of market operation, you enter the market, and when your system and cycle are inconsistent with the stage and cycle of market operation, you exit and wait and see. This is the trading rhythm!

1. What you do is short-term. Many people understand that it is fast in and fast out. Yes, but this is just a result, what is the inner logic? Lao Xu personally thinks that the internal logic is the pattern you judge, and the cycle you choose is a small cycle. For example, if you only look at the pattern for 4 hours, and then look at the pattern to enter the market in 15 minutes, this is the short-term. The short-term also follows the cycle principle of kinetic energy accumulation to kinetic energy release! Is your system suitable for the process of kinetic energy accumulation or the process of kinetic energy release? Many friends want to chase after a larger bar in 5 minutes, calling it a short-term, but they don't analyze whether the bar is saving or releasing? Without using the trading system to measure him, I don't need to say what the final result is!

2. What you are doing is the band, just like Lao Xu, the small band, what you look at is the pattern of the daily line, and enter the market in the form of 1 hour! He also follows the cyclic process from kinetic energy accumulation to kinetic energy release. The only difference from short-term is that the period of judgment is different. Of course, this difference should be paid special attention to. Many friends will confuse short-term with short-term. When I laid out crude oil a few days ago, An internal family member said that Old Xu’s crude oil seems to be too much. The 15-minute moving average has stabilized. Did he find any problems? It was unreasonable. Of course, the final result was that I survived and the market fell by 200 points. He didn't catch it and ran away early! Therefore, we must focus on the problems of this cycle!

3. While paying attention to the trading rhythm, Lao Xu discovered a very serious problem that many of his friends had. The position is the target of the weekly and monthly lines, obviously the result is profit taking! When too many friends communicated with Lao Xu about the market, they entered the market according to 15 minutes, thinking in their hearts that it was the target position of the weekly line. It is conceivable that the final result was not ideal, resulting in profit-taking and losses ! The most prone to this kind of situation is often gold, crude oil and other varieties with relatively large fluctuations. If you are not careful, you will have an illusion that you will fall or rise sharply. At this time, many people often forget the rhythm of trading! To give a realistic example, crude oil had a 200-point drop a few days ago. After we entered it together, I said to look at around 37.5 first. Some friends said: Wow, this wave of market prices may be 13 yuan lower than the daily line Nearby, look at how far you can see, what is the final result of this market, the lowest crude oil is only 38.6, and I reminded customers to lighten their positions at 39.03! The reason is that I see this structure


Many friends are doing the 1-hour pattern, but they are looking at the target of the monthly line! Is it unreasonable, don’t laugh, friends who are reading the article, review the game carefully, I guarantee that you will have this hallucination many times!

4. Many friends may want to ask, the market in a large cycle is also evolved from a small cycle, and the 1-hour entry form may gradually evolve into a weekly or monthly market. Yes, there are indeed, but on the one hand, this kind of situation is rare, unless it is a big unilateral market! And now there are too few big unilaterals! On the other hand, when the daily line shows a pattern, can you still go in? Why do you want to bet that the pattern can evolve into a weekly and monthly market in one hour?

To sum up, according to your own trading system and trading cycle, locate your trading rhythm! Trading will be so much easier!

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Last updated: 08/23/2023 02:51

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