Seven Principles of the Currency Circle
1. Principle of inertia: When in a rising or falling trend, the trend will generally continue.
2. Wave principle: The price will rise as high as the price falls; if the quantity is sufficient, the price will rise.
3. Be extremely quiet and think about moving: Narrow prices and shrinking volumes often herald the coming of a big market.
4. When things go to extremes, they must reverse: When the market develops to an extreme state, it will move in its opposite direction.
5. Consistency: It is most powerful when long-term and short-term trends are consistent.
6. Turning point crossover: When the short-term and long-term trends conflict, the market may change.
7. Cost principle: When the purchase cost is less than the market cost, the risk is smaller.
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