Guide:
A comrade-in-arms shared the trading skills he summed up. In simple terms: "Use the cost of a K-line to bet on the direction, and use the profit of a K-line to bet on the profit."
In the past, I only studied buying and selling signals and buying and selling opportunities, but now I have transformed into discovering trends and trading with them without knowing it. This is the biggest change!
My three revelations:
1. In this market, if you have technology, you can indeed make money;
2. The correct buying and selling signals only have a relatively higher success rate of entering the market;
3. The real way to make a lot of money is to follow the trend, take the band, and trade time for profit.
There may be thousands of buying and selling signals for thousands of people, but the method of making big money is basically the same: just follow the trend, take the swing, and trade time for profit (you can also take advantage of the trend to increase your position in the middle).
A successful transaction is an accurate grasp of direction, position, and signal (timing). If the direction is right, you will not go against the general trend, if the position is right, you will not hit a stop loss, and you will make fewer mistakes after the signal comes out (I slowly realized it).
"Position is more important than direction". With a sense of position, it is easier to have a sense of direction. The limit of market ups and downs will cause a change in direction. This is the law that everything must be reversed (a passage that I occasionally heard an explanation about position ).
"Use yin and yang to find the endpoint signal, and use the turning point of the moving average to grasp the timing of the reversal." This is a completely different usage of the K-line and the moving average, but it is also the same usage.
The fluctuation law of the K-line belongs to the market law, and the law of the moving average operation belongs to the technical law. Only by mastering certain market laws and technical laws can one have the ability to drive the market. Of course, a genius like Bazhu can play the capital market with just the K-line.
However, most people have to honestly use the K-line combined with the moving average to identify trading signals. No matter what indicator is used, the indicator is just a tool. Without experience in use, a tool is a tool. With experience in use, a tool is an artifact.
Yang breaks the former Yin, and Yin breaks the former Yang, which is a signal of trend reversal. When Yang connects with Yang, it will rise, and when Yin connects with Yin, it will fall, which is the characteristic of trend continuation.
If the lone yang does not rise, and the lone yin does not fall, it is difficult to form a trend without continuity in the K-line.
In the big cycle, the "yang breaks before the yin" is a wave of "low point-high point-second low point-new high" reversal pattern in the small cycle; In the small cycle, there is a wave of "high point-low point-second high point-new low" reversal pattern.
The signal obeys the trend. In the cycle of the same level, after the upward reversal pattern appears at the low level, it is not suitable to go short when there is a "Yin before the yin breaks", and you can only wait for the K-line callback to end and then "Yang breaks before the yin" to do long; After a downward reversal pattern appears at a high level, it is not advisable to go long when there is a "yin before the yang breaks". You can only wait for the rebound of the K line to end and then go short when the "yin breaks the yang before the yin breaks".