I have always emphasized that we must understand our trading background when doing transactions. Then this background is the overall view. Only by focusing on the overall situation can we gain insight into the future. Disorderly fluctuations; secondly, the local price behavior, such as what type of pattern is formed, may be composed of a dozen or dozens of K-lines. The last is the microscopic field, which is usually implemented on a single K-line, which also constitutes my analysis system, surface-line-point, and they complement each other to present a different sense of picture.
Next, let us keep our minds open, let go of all the burdens of thinking, and look down on every detail presented by the market from a subtle point of view. From these details, we can feed back the possible trend of the market and our handling of the trend, from the perspective of position holders and short positions. Review the market trend and observe how these decision makers make the most favorable choices they may make;
Now let's focus on K line 1. The left side of K line 1 is an upward trend A. This is obvious. I believe that as long as you have a little knowledge, you will recognize it immediately. Now let's interpret it from the perspective of position holders and short positions. In this market, when K-line 1 comes out, both short-term holders and long-term holders who have been long before will pay attention to this K-line. Strong price repulsion, short-term position holders who have not had time to exit the market may exit the market in the next trend, while long-term positions believe that this is still in an upward trend, and may reduce some positions, and observe the next price behavior, before entering the market on K line 1 The trapped bulls are also observing, and we can see that none of the following trends have reached a new high, and the bulls holding positions have a concentrated release at K line 2; if the traders with short positions will find that this is a strong reverse movement , whether there are two selling points for entering the market, they are waiting, if the market continues to test the extreme position of K line 1, will it be strong or weak; if a lower low point is formed, then a double top structure may be formed, K line 3 opened high but went low, which is not a good phenomenon. It is like a reversal day within a day, and K line 3 has tested the extreme point. Short-term short positions are clearing their positions, and short positions are joining the ranks of short positions. Seeing this phenomenon, long-term long-term holders also initially opened positions, and the trend closed out a continuous trend K;
Reversal trend B is a long flag pattern, forming a double-top structure at 4567, going back to the downtrend trend, trend C and trend B are the same and a long flag pattern, a reversal K is closed at the dynamic resistance, and B is a short position The position holders took profits and made a reversal attempt. The long-term short sellers set a limit sell order at the dynamic resistance. Most traders can basically recognize this classic pattern, so both the long and short sides will reach a relatively unified point of view and form a consensus Sexual views are bigger;
The last K15 breaks through the lower edge of the ascending channel D. If it is a breakthrough, the trader will probably choose to sell short, thinking that the short trend will continue. The adjustment time of ascending channel D is different from BC. On K lines 11 and 13 and There is obvious price repulsion on 14. If the short position holders at K15 do not form a continuous downward trend K, the short position may change from the trend to the trading range; the initial target may be the low point of 11 13;
According to the breakthrough entry in Figure 1, it eventually turned into a short trap. In fact, if we carefully find that the background of continuing to break through from the overall reverse is not very supportive, and there will be a lot of price repulsion; it is also very easy to be short here. Normally there is nothing that cannot happen, we will not have an absolute advantage, both long and short have their own reasons, after we stop the loss, there will be a round of excessive rise, and there is almost no decent Yinxian in the middle, if we find a transitional market, once it appears The sign of reversal, short-term position holders like to make a quick profit, when the bias is consistent, the foot market will appear;
Summary: Keep an open mind at all times, accept the information given by the market, and integrate judgments. You can’t just find information that is beneficial to you and ignore information that is unfavorable to you. There is no absolute advantage, but there is a relative advantage. If a certain market is excessive, It is necessary to know that some traders on the market and off the market have differences. Once the mainstream decision-making ideas are not unified, it will be difficult to form a consistent trend; More, short positions and other best entry points; when a mainstream consensus view is formed, there is a high probability of going out of a consistent trend; our relative advantage will exist.
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