Foreword: The Dharma of the Two Perfections in the World, Live Up to the Tathagata and Live Up to You ----- Tsangyang Gyatso
This technical post forms a complementary relationship with the previous answer. You can pay attention to the question: how to do transactions with ease.
Trading is a trivial matter, but because it involves money, it will be misinterpreted by many people who are not popular or even have good intentions.
The author hereby reminds everyone: Don’t fall into the trap of trading left and right.
Many soft articles or some writers will exaggerate how to make money in these two modes of left and right trading for the sake of reading volume, and even keep instilling in you: newcomers should trade on the right side, while he himself is just looking at the picture to find the position. Just a trader.
Friends of Hui who have read the author's article, if you can appreciate my trading philosophy from it, at least you will save a few years of hard work, because the most difficult thing in trading is to get out of the "trading vicious circle". The so-called trading vicious circle is Refers to: Indicator analysis is well-organized, and you will know how to look horizontally and vertically. When it's time to make a deal, it's free
Before proceeding with the analysis, let’s first understand how we, as human beings, learn and use knowledge. We all start from knowing nothing, first substitute a paragraph: basic investment philosophy, on this basis we materialize him, let you see, and then follow the template to trade and the final result deviates from our previous ones Cognition produces new resonance and leads to new ideas. Many people often fail to resonate with their original cognition (cognition is all knowledge), so when doing transactions, there is always no way to achieve stable returns.
Many people often wrong themselves in the process of learning investment transactions. The author's trading belief: I don't want to be a trader like XX, I just want to be a trader like myself. I just want to be lazy in trading (what is lazy? Make money when you should make money, and watch more and do less when you should not make money )
The world is safe and secure with the law of both, and I will not fail the Tathagata and not fail the Qing. How can there be so many methods in this world that are suitable for you, as long as you don't let yourself down and don't wrong yourself, isn't that all right? Regardless of whether it is a left or right side transaction, the final result is that the arbitrage is successful and the profit is out.
The author points out a strange phenomenon here: most of the contents of soft articles and even small videos in the society are repeated, and there is no change. And the author can tell everyone responsibly: No matter which book it is, it cannot express the author's core idea, let alone the technical analysis concept that has evolved through hundreds of years. Often these concepts such as: Poisoned chicken soup are not problematic in themselves because they are all explaining phenomena, and this phenomenon corresponds to the content of chicken soup. It is because of this that you will not be able to make further progress, and you will even fall into a trap of some kind of person.
A transaction is a long and trivial matter. It is impossible for someone to explain the transaction clearly in a few words. It has the charm of comprehending life itself. If life were so easy, there would not be so much suffering in the world.
The transaction on the left depends on "price", and the transaction on the right depends on "time"
The transaction itself has always been inseparable from "quantity", "price", "time" and "empty". In the process of using the transaction, it is necessary to add two important elements of "price" and "time".
We have been talking about the cycle in the past technical posts. The level is actually "time", but it is too basic to say it.
Trading must consider the element of time. Four patterns emerge when we embed the left and right transactions into time
The first type, the right side of the large cycle, the left side of the small cycle
The second type, the right side of the large cycle, the right side of the small cycle
The third type, the left side of the large cycle, the right side of the small cycle
The fourth type, the left side of the large cycle, the left side of the small cycle
Ordinary traders only understand the second and fourth types of left and right sides, but they don't know that left and right side trading itself is just a trading method.
From the above model, we can conclude that there are only two types of so-called right-side trading: one is to enter the market when the trend is running, and the other is to enter the market after the reversal (following the trend). In fact, trading on the left side has higher requirements for technical analysis (sensitivity to prices)
Here the author puts forward the following ideas
The first three modes are used by many newcomers and even some experienced traders, but I have never distinguished them. Anyone who has read the author's post on advanced use of MACD knows that the author likes to analyze trends in multiple cycles. In fact, the first three modes can all make money, but you have to match them with corresponding trading ideas and trading methods. When you want to earn money in the fourth mode, the risks you take are too great and you need a lot of things, so I won’t analyze them in detail here.
Under multi-period analysis, these three modes interact. This can help you understand the reasons for the discrepancies between large and small cycles. Why I said in previous posts: He who has time has to trade, your trade lacks time! Then the transaction you make is rigid, it is dead, so there is no way to deal with the ever-changing market.
There are many kinds of time periods, the common ones are 30M,...4H,1D,1W,1M. In fact, we can embed different modes in different cycles during the application process.
For example, the first type: the right side of the daily line, and the left side of 4H. In this mode, what traders need to do is to use appropriate trading techniques to enter the market, after entering the market. If the trend continues to heat up (suddenly cool down), the right side (left side) of the weekly line and the right side (left side) of the daily line are the changes or meanings behind the combination of the two time lines of the weekly line and the daily line. When trading, at least you no longer have a head and an tail. For the author, I like the third kind of daily line on the left side and 4H on the right side. Then I will cut off the weekly line. The weekly line must be on the right side of the transaction, so as to avoid This kind of "gambling behavior" on the left side of the weekly line and the left side of the daily line appears.
Why should the price be considered the most in the transaction on the left, while the transaction on the right is only time?
In fact, if you understand the previous article, you will also understand the following content. When we are doing transactions, in order to ensure profits, most traders like to follow the trend. Many people lack the concept of time, and they will always look long and bearish for a while, and then get nothing. The final result is always When I went down, I was annoyed that I had opened an empty order myself.
The basis of following the trend is that when the big cycle is running, the small cycle will not affect the big cycle in the short term. Then the principle we use is this. At this time, as long as the right side of the large cycle, the left side of the small cycle or the right side of the large cycle, and the right side of the small cycle are in these two modes (that is, the market has just started to reverse or accelerated after it has reversed) .
Therefore, at this time, when we are considering trading on the right side, we need to judge whether the trend of the big cycle is unilateral (acceleration section on the right side) or trading on the right side (the buying point appears)
Often when accelerating (unilateral), there will always be a phenomenon of big right and small right (unilateral judgment has been written some time ago)
The common phenomenon of normal right-side trading is big right and small left (such as: pull back to buy, when you pull back, you need to switch the corresponding small cycle to judge the price)
At this time, when we discuss the left side of the transaction, you will find that when we use the left side of the transaction, most of the time we use the left side of the transaction is mostly when we call back to intervene and buy top and bottom.
Here the author sells a pass and only writes the content of the callback. I really don’t want to write how to judge the top and bottom and how to copy it (you don’t believe it? Go back and look at the 7 trading days before the peak of gold at the end of July. Get ready, listen to alternative voices to be bearish on gold)
Why do you say that you look at the price in the left side of the transaction, and you will find that whether it is when buying tops and bottoms or when callbacks, what is the key? If you want to go against the trend, the first thing you have to face against the trend is the price. An excellent trader must have a keen sense of the price of market varieties. When we judge the price, we generally use many indicators: the golden section, the moving average system, naked K (the author is lazy, I will tell you some technical analysis things directly: the analysis of all indicators is common, as long as there is one link that is not common, then it is not perfect)
So there is no need to look down on the indicators used by other trading systems, everyone is different. It's just that the author has a clear understanding of the indicators, so I simplify the complexity and only use the moving average. Just understand the logic inside, there is no need to argue about bulls and bears.
The main core of this article is to strengthen everyone's use of the "time cycle" thinking in the process of trading. At the same time, click on the "price" mentioned in my recent technical post, so that you can understand how much is how much. The technical post that has time to analyze the "price" will be updated. And correct some false propositions. Technical analysis without time to think is playing hooligans. After reading the whole article, you will find that most people say that the left and right side transactions are only the second and fourth types. If you only have these two in your head, it will be difficult for you to break out of the vicious circle of trading.
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