Can the left transaction and the right transaction be combined?

In the traditional sense, trading on the left is also called trading against the trend, while trading on the right is also called trading with the trend. Some people criticize the trading on the left as predictive trading, but they don’t know that the so-called trading on the right is just an expectation that the current direction can continue and the breakthrough can be maintained. , isn't this also a kind of prediction? The middle of the left and right is the reversal pattern, V-shaped reversal, head-shoulders reversal, W/M reversal, arc reversal, etc., all kinds of reversal patterns are counted. ​Entering the market before the reversal, that is, trading on the left side, needs to predict or plan two things, the occurrence of the reversal pattern and the continuation of the new trend after the reversal, the advantage is that there is a large profit margin; entering the market after the reversal, That is to say, in the trading on the right side, there is only one thing that needs to be predicted or planned, and that is that the new trend can continue. The disadvantage is that part of the potential profit space is lost. The winning rate of trading on the left is not necessarily low, and the winning rate of trading on the right is not necessarily high, depending on the current price pattern.

The key difference between the so-called left-hand trading and right-hand trading is whether traders should wait until a clear reversal pattern appears before entering the market. The purpose is to participate in the market when the market starts. No one needs to say who is more greedy . ​

Trend traders are firm traders on the right side. They pay more attention to the price pattern, and generally give up the period when the market has reversed but the trend has not been confirmed. The third wave starting from the turning point, the position where the callback is made after the reversal and then breaks through. The purpose of choosing the entry point is to let the market completely break away from the shock area formed by the reversal pattern​. Trend traders have light positions, large target space, and long holding cycle, so they don't need to be too entangled in the reversal process. Correspondingly, the exit of trend traders is also on the right side. In order to prevent missing the follow-up big market, they often need to wait until a clear reversal pattern appears before exiting the market.

Short-term traders are more suitable for trading on the left side. They generally only participate in a small part of the oscillating market or trending market, with heavy positions, small target space, and short order holding period. They trade based on resistance and support levels, not price patterns, and are in no position to wait for a full trend confirmation pattern to emerge. The market is in a state of shock most of the time, and you can only sell high and buy low on both sides of the box. If you wait until the trend is confirmed before placing an order, you will often be slapped in the face. Most of the profit space will be lost, and the loss outweighs the gain. When short-term traders participate in the trend market, they can often only participate in one wave of the confirmed trend development, and most of them will take profit and leave the market when the market is slightly frustrated. sideways.

Trading on the left and right is just two means, and its purpose is to find a more advantageous trading signal. The primary consideration for choosing a trading signal is the expected profit-loss ratio, the ratio of the expected profit space to the expected stop-loss space.

For shock trading, the expected take-profit range is the range of the entire box on the target side, the expected stop loss point is a point outside the target reverse box, and the best entry position is the edge of the box. If you use the right side to enter the market, your entry point will leave the edge of the box and enter a part of the box, which reduces your expected profit, increases your expected stop loss, and reduces your overall expectation Profit-loss ratio, so when short-term traders do volatile market, it is best to use the method of placing orders in advance and enter the market on the left side to get the smallest stop loss range, even if the winning rate is a little bit low, they are not afraid. When doing trend trading, the expected stop loss range is the entire reversal range. You have to wait until the market leaves this range and the trend is confirmed before it is possible to capture a wider profit space and increase the expected profit-loss ratio.