How to Identify and Operate N-Bottoms and N-Tops

How to identify n-shaped bottom and n-shaped top 1. First of all, we should know that the so-called n-shaped bottom and n-shaped top below the hourly chart are not within our rules, because the form with too small time period is not stable. 2. There should be an obvious downward trend in the early stage of the n-shaped bottom, and the bigger the better, once this trend is reversed, the potential room for future market rises will be greater. 3. For a standard n-shaped bottom, the back bottom should be slightly higher than the front bottom. On the contrary, for a standard n-shaped top, the back top should be slightly lower than the front top. 4. N-shaped bottom and n-shaped top are a form. Since they are forms, they must have a certain formation time, that is to say, they should be formed by at least several hourly or daily or weekly k-lines. This is very important. 02 How to operate this highly confirmed form in actual combat. The n-shaped bottom intervenes when the second dip is successful and the 5-unit moving average starts to turn upward again. The n-shaped top will intervene when the second push to the top fails and the 5-unit moving average begins to turn downward again. It is absolutely impossible to intervene in advance or intervene too late. Early is to open a position on the assumption that there is no objective basis. If you open a position too late, you will be too far from the defensive position. Far, causing the stop loss to be too large. Position management is still consistent with the operation of resonance and anti-vibration, that is to say, the initial position of futures is set at 0.25 times leverage, and 0.25 to 0.5 times for stocks is appropriate. In the future, we will increase positions at every rhythm point. 03 Standard shape and actual trading legend Figure 1: Standard n-shaped base Figure 2: Weekly n-shaped base of the Shanghai Composite Index 998 point century bottom Figure 3: Futures thread Legend Figure 4: Standard n-shaped top Figure 5: Century Figure 6 of the weekly chart when the top of the big top 6124 points is formed: legend of futures cocoa