We often see "make orders when you see a position, and make an order when you break a position". The "position" here is the resistance and support level. In the initial trading of many people, they will try to analyze the fundamentals first, and it turns out that after all, free trading The amount of effective information that investors can obtain is limited, and it is impossible to achieve the purpose of making money in a short-term time frame through an accurate grasp of the fundamentals. So these traders gradually adopt the "price reflects everything" technical analysis creed. Therefore, using technical analysis to find market trends and key positions to enter and exit has become the top priority. What we mentioned below is a relatively important and commonly used trading strategy in this technical trading thinking. This trading strategy can also be said to be the axis point system, Fibonacci segmentation system and even other resistance support analysis trading system operations Foundation. Therefore, I hope that investors can gradually understand the trading ideas provided, and then build their own direction and position trading system.
Such trading systems are generally very simple:
Go short at the resistance level (wet position), go long at the support level (wet position), break through the resistance level and backhand go long (heavy position), break through the support level and backhand short (heavy position).
Usually, a position is opened against the direction of market movement at a key position, and only after breaking through the key position and operating along the market direction. This type of system is not only a reverse system, but also a trend system, which is suitable for range markets and trend markets. If we can use other technical tools such as candlestick charts to identify the effectiveness of breakthroughs, then we can selectively operate , instead of blindly "reverse first, then follow the trend" operation. We will face frequent false breakthroughs in trading. When false breakthroughs occur, we must resolutely close the list of chasing breakthroughs. Of course, this requires other technical tools for judgment.
The resistance level and support level need to be determined first, and then the operation strategy is determined according to the position and movement direction of the price in these ranges, and then the specific execution is followed. For the determination of resistance and support positions, we use the following methods:
1. The upper and lower edges of the transaction-intensive area are the positions of resistance and support
2. Previous highs and lows are also resistance and support positions
3. When the price moves to the previous transaction-intensive area, the previous transaction-intensive area puts pressure on the price, and this is also the position of resistance and support.
4. Fibonacci retracement line and extension line position
5. The key position determined by the axis point system
6. The previous day's highest price, lowest price and today's opening price
Our specific steps are as follows:
1. When the price is in the transaction-intensive area, the upper edge is the resistance. When it breaks through the upper edge, the long side in the transaction-intensive area at this time will feel comfortable. Because he has made money, he may continue to increase his position and do more. It will increase, and at this time, the direction of short selling in the intensive trading area will be "with a heart in his throat", because he has lost money, and he is likely to be eager to stop the loss, so he will close the short order. In this way, when breaking through the upper edge, there will be two forces, one is the force of multiple orders, and the other is the force of closing short orders, both of which are the driving force for the price to continue to rise. At this time, I will "break through the resistance level and go long (heavy position)". In the same way, when breaking through the lower edge downward, there will also be downward force. And if it does not develop in the expected direction after the breakthrough at this time, it means that investors do not approve of this direction, and if they do not approve of this direction, of course they will move in another direction, and the price will go to another edge test. "When there is a false breakthrough, we must resolutely close the list of chasing the breakthrough, and open a new position with a backhand." If one direction is not recognized, the price of a book will move to the other edge or even break through. The breakthrough at this time is generally a real breakthrough. After all, the possibility of the performance of the Lama form may be relatively small. The Lama form is when investors are crazy only then.
2. When the price breaks through the transaction-intensive area, it will rush to a certain distance away from the transaction-intensive area. This distance is our profit. The speed of this rush will be very fast. To complete the actions of closing positions and backhand opening positions at the moment of the first rush (breakthrough), this is faster than anyone else knocking on the order. Sometimes it is almost too late, so I recommend investing Those who are timid should not place short orders on the upper edge of the transaction-intensive area, but wait for him to break through and open long orders. After the price rushes out for a certain distance, the market will return to calm, and another intensive transaction area will be formed. At this time, the transaction volume will be much smaller than when it rushed out. At this time, what we have to do but is to close the profit order, rest and wait for the next A money-making opportunity.
3. Breaking through the resistance level, there may be a counterattack after a high point is generated. At this time, the counterattack will convert the original resistance level into a new support level. At this time, you can do more at this support level. Close the position and backhand.
To sum up, the price will keep moving at the resistance level and support level. Traders must know these resistance levels and support levels well, and make a fuss about "breaking", it is best to "do not break or stand". What we need is to set some Effective price movement partitions to grasp exchange rate fluctuations, so as to formulate a trading framework with a reasonable risk-reward ratio, and then strictly implement it.
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