To operate the trend, three tricks are enough!

It is quite simple to identify the trend. With a good grasp of the basic structure, everyone can determine the correct direction of the trend. But the biggest difference that can really distinguish a professional from an amateur lies in the degree of mastery of trend sensitivity.
Facing a trend that is coming to an end, it is very important to grasp the initial signal to enter the reverse trend . If you enter the market at the beginning of the reverse trend, you can at least double the profit margin compared to others.
This article will lead readers to discuss how to grasp the initial trend direction and what kind of analysis methods can be used to master this "magic skill".

What is a "trend"  

Uptrend : The high point keeps making new highs and the low point keeps rising.
Downtrend : The low point keeps making new lows and the high point keeps falling.

This is the simplest criterion for judging the trend. In a single trend direction, both conditions are indispensable. If any one condition is missing, it means that the market may enter a consolidation or adjustment mode. For example, in an upward trend, the high point keeps making new highs, but the low point remains at the same level or even begins to gradually decrease. In this case, it means that the rising and falling sides are in a pull, and the two currencies in the currency commodity represent the strength The levels are similar, thus forming a tug-of-war situation.
What should I do if the conditions are not met? It is not difficult to solve this problem, but in fact most people cannot do it, because what most people lack most is "patience". When the pattern is not established, the most basic requirement of a trend is not considered a trend. At this time, we can only wait patiently for the condition to be established, and then enter the market after confirming that the trend pattern has been established.
When the high points in the upward trend keep making new highs, but the low points remain at the same level or even begin to gradually decrease, then wait for the turning point of the low point in this market to start to rise. When the lows in a downtrend stop making new lows, but the turning highs continue to fall, wait for the price to break out of the horizontal lows and wait for the moment when the trend conditions are true again.

As shown in the figure, the original trend was an obvious upward trend, but in the process of the second downward correction, the market entered a triangle convergence pattern , indicating that the strengths of both currencies were strong or weak and the range of change was not large, and finally evolved into A situation in which the range of price fluctuations gradually shrinks.

There are two options in this situation: (1) wait for the price to break out to continue the uptrend; (2) the price starts to fall to trigger the counter trend condition to turn into a downtrend. No matter which one it is, it is necessary to wait, and before a clear trend pattern appears, it is not appropriate to have any suspicious actions.
Furthermore, after gaining the knowledge of the pattern of the trend, if you want to grasp the timing of entering the market more effectively, you can follow the steps below. In addition to grasping the initial stage of the trend, it is also possible to grasp the extreme point of the entire market of.

Three Steps to Mastering Your Entry Timing  

1. Pay attention to relevant news.
Any event related to changes in the economic and political situation of the foreign exchange country will affect the trend of foreign exchange prices. Investors should focus on it and be familiar with its impact mechanism. Generally speaking, events that can promote the economic and political stability of the currency country can affect the value of the currency to a certain extent.
If you are used to operating US dollar-related currency products, you need to pay attention to the data and policy news released by the US authorities, judge their relevance, and finally go to the market for feedback verification. However, it should also be noted that there is no need to pay special attention to news with a small event level, which is not only too cumbersome, but also easy to be misled and make wrong analysis.

2. Determine the key price

The market is bound to encounter support and resistance in the process of advancing, which is also one of the keys to the turning point of the market. When analyzing, investors can combine the basic structure pattern to go long on the support, and go short under the resistance. If a breakthrough occurs in the reversal pattern, they can enter the market to chase long and short.

3. Strictly carry out stop loss
In any analysis, even a veteran with more than ten years of experience cannot be 100% accurate. In the process of trend layout, it is inevitable that there will be premature entry or structural rupture. To limit the loss and reduce the loss to a reasonable range, the stop loss must be strictly implemented, otherwise there will be no capital operation until the moment the trend really appears.

Short-term accumulation forms a band, and the combination of bands forms a trend. Through technical analysis, we can not only judge the main direction of the trend, but also operate short-term and swing market from it. Even so, you should always pay attention to the change of the trend. When the trend changes, you must maintain a good analytical attitude in order to live longer in the market. Come on! Let's encourage each other.