Today I would like to talk to you about the relationship between the trend of the market trend and divergence. As the saying goes, there is no divergence if there is no trend. At present, the market is talking about institutional trading thinking and retail trading thinking. In fact, there are many transactions in the market. They are all concerned about what the so-called bankers and big institutions are thinking?
In fact, to put it bluntly, many traders are just YYing themselves! If you insist on saying that there are so-called "bankers" and "big institutions", then I personally think it is more of a trading thinking, because I personally divide the thinking logic of trading into "institutional trading thinking" and "retail trading thinking". ".
(From the picture above, we can see where retail investors will enter the market, and institutional professional traders will choose to enter the market at that position! In other words, retail investors often like to chase orders, that is, chasing ups and downs! Professional institutional traders do not will do!)
In the end, what are some professional traders of large institutions thinking about in the process of trading, at what position some professional traders of large institutions will enter the market, and at what position some professional traders of large institutions choose to leave the market! The theory of Zen in Zen, that is, the positional relationship between "suffering" and "not suffering" in "Tangling", which is quoted from "The Analects", but often many traders are very confused about "not suffering" and "not suffering". "Disease" comes from classical Chinese, so many traders' understanding is a bit upside down! This is not important, what everyone needs to understand is to mainly put forward a thinking, that is, it is unreliable for the static market, but reliable for the dynamic one! Then if we refer to the financial trading market, we can refer to the role of key support and pressure levels in the market!
But what everyone needs to understand here is that both retail traders and professional institutional traders are mortals, and they cannot escape "greed, hatred, ignorance, slowness, and suspicion". This is the automorphism of market trends in disorder. Sex exists! It is precisely because of the self-isomorphic structure that exists in the market, that is, it provides traders with accurate bottom-hunting and top-finding practical trading skills and strategies!
The deduction of the market trend structure is at the same time determined, precisely because of "no trouble", what everyone needs to realize here is that "no trouble" means "sure", as I said above, this is exactly the same as the understanding of many traders The opposite of! How the market trend goes is changing rapidly, but the deduction method of the trend is definite. Why do you say that, because the market trend has several situations! "Trend" and "No Trend"!
Trends can be divided into: rising market and falling market!
No trend This is a kind of: the market shock has no direction, and it is in a period of confusion!
So our complete classification is "rising"; "falling";
The above is the analysis of the market trend, but this is not all of the transactions of a trader and doer, maybe this is only a small part. As traders, we should focus on operations! Just talk without practicing fake moves, so the key to real trading operations is not just talking on paper! How to apply the theory to actual trading is the key. One thing to understand: "there is a certain gap between the idealization of books and the actual trading of operations." Operation, I think that the result will not be too good!
To put it bluntly, its rise, fall or consolidation in this market, that is to say, for the judgment of a trend in this market, this is relatively simple and easy to understand. But why do many traders in this market say that their judgment on the trend of this market is correct, but they lose money on the disk of this transaction.
So that is to say, how do we operate in this real trading operation? So when it comes to this, it is possible to grasp this key point, that is to say, a key support and pressure level in this market is a key reversal position of the market trend. Then we still have to start from this disk chart, why do we say that? Because of this entanglement, he is standing on a purely technical trading technique. Because this transaction may be divided into several types, such as the fundamental and technical aspects, it may be that for a trader who is entangled, he is standing on the technical aspect of this transaction category.
So for example, if it is a trend of this level, a complete type, a+A+b+B+c standard trend type formula, then at this time, the two hubs may be for this top, Or a confirmation at the bottom.
So if you simply use this divergence at this level, it may be that his trend has gone out of this distance, and there is no precise buying and selling point. So at this time, if it is an upward trend, then we need to start from this sub-level, and the sub-level judges whether this high point is a top or not. At this time, it may be that many traders have used this or something, such as a golden cross or a dead cross of MACd, as a resonance or a periodic resonance, so what are we talking about here? This cycle is not a standardized thing, at least from the perspective of entanglement theory, because entanglement theory focuses on a level, although many online talk about this is different, for example, the previous level of 1f is 5f, 5f is a level above 30f. Although there is this definition on the Internet, if we want to recurse strictly, we will find that it has a certain difference.
A consolidation at this level may be a sub-level trend type! Here is the problem involving recursion! Of course, the issue of transaction level is also different for different traders! I'm talking about positioning for a relatively broad time period! This is closely related to the trading system prompts of the traders who are entangled! But one thing to be clear is that it belongs to your own trading system system! Have your trading style!
Due to space constraints, I will stop writing here today! I didn't talk about the simple interpretation of the divergence in detail, and I will talk about the actual trading skills of the divergence trading disk later! Let me talk about the deduction method I personally understand about "no trend, no divergence"!
To put it briefly here, what is easy to confuse many traders in the market is the confusion about the concepts of divergence and divergence! To put it simply, deviation is a problem of points, or it can be said that it is a problem of two points. However, in my personal understanding, it is a problem of planes. According to the analysis from the perspective of mathematics, the points go out, and the lines are compiled into planes. Needless to say which one is more stable!
Back to the next detailed answer, today is here!
I found that there is a problem in this trading market, which is a common problem, that is, as soon as the market starts to skyrocket or plummet, someone will stand up and say that this news caused it, which news caused it?
This view is not really flattering! You must understand that the market is not for the market! Only when you understand the needs of the market trend will you release explosive news to promote the market and let the market ferment quickly! Professional traders should find out whether the financial data is bullish or bearish from the market trend!
I don't know how many traders can understand when I say this!
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