The shape of the disk determines your profit and loss!

Some traders often discuss with me which is more important, "pattern" or "indicator"?

On this issue, we need to be clear about the concept of "pattern" and "indicator", and we must know that the application methods in a certain market may be different. Let's talk about the shape first. The shape is a graphic expression directly formed by the K-line, which can be simply understood as the first signal. An indicator refers to an indicator signal that is drawn using some parameters after following the k-line. To be precise, the meanings of the two are different. Generally, when we do transactions, we will regard the form as the first signal, and then refer to the indicators for auxiliary reference. If it is in the same direction, then our probability of entering the market will be greater. On the contrary, it generally enters the market with reference to the form.

Next, I will introduce the analysis of some indicators and patterns to enter the market for the real operation, which will be displayed in pictures.

The box oscillates upward and the contracting triangle cooperates with the moving average to step back into the market

It expands first and then shrinks to form a diamond, which breaks the diamond shape, and the transaction is made according to the strong force, which has a high probability of being accurate.

The standard shrinking triangle with the moving average enters the market, the accuracy rate is very high, and there will be a relatively good profit-loss ratio, pending order trading is not recommended on the premise of a large stop loss.

The triangle with a large period allows me to switch to a small period, so that everyone can see the trajectory of the movement. After you are familiar with it, you can switch to a small period to enter the market. In that case, there will be a better entry point.

There is a high probability that some patterns will continue the previous trend, provided that the trend ahead is relatively strong.

The actual combat case above includes entering the market with a diamond shape with a moving average, a shrinking triangle with a moving average, and a box shape with a moving average. The next few articles are going to give you a detailed introduction to the detailed operations of various forms and indicators.