About Diffusion (Horn)

It has been said before that this is an extremely difficult pattern to do. Once you encounter it, you usually choose to take a break. But it is not completely impossible to do it, but the risk is very high, and the profit and loss ratio is generally average, so it is not recommended.

I have a little experience to share:

After the diffusion is formed (the sum of the upper boundary key point + the lower boundary key point is at least greater than 5), you can draw a middle track line from the starting point of the diffusion to divide the upper and lower parts equally. You don’t have to be so rigorous as to measure it with a ruler, just roughly. After the division, use the middle track to distinguish the trend. If the price is above the middle track, it is dominated by bulls, and below it is dominated by bears, and then you can do it as big as you want.

The principle is also relatively simple. No matter how large the diffusion is, it is essentially an oscillation range. The median price of any oscillation range is an important divergence point for market participants, which will affect the transformation of trading volume, trading sentiment and supply and demand forces.

Compared with the convergence pattern or rectangular consolidation pattern, the middle track of diffusion is more difficult to define. At the same time, the increase in terminal volatility leads to the ruthless liquidation of long and short forces, which also makes the short-term liquidity (depth) of the market more fragile. A slightly larger order can bring about an amplitude that is rarely seen on weekdays, which makes the transaction more difficult.

If you want to do it, I still recommend being cautious. It is best to follow the general trend and make small orders, so as not to be swept away when the gods fight.