Swing Trading🔻

I. Trading Concept

1. Choose a point in the trend with a large enough profit-loss ratio and winning rate to enter the swing holding

II. Select the target and open a position

1. There are varieties with obvious direction or long-term consolidation on the daily line that will undergo direction selection

2. Find a pattern breakthrough (convergence, triangle, channel) or trend line breakthrough on the daily line

3. Break through the resistance level with a small cycle consolidation and continuous small Yinxian, Xiaoyangxian or cross star

4. Open a position at the critical point of breaking through the small cycle sideways consolidation (5/15/60 minutes)

III. Stop loss

1. The upper and lower edges of the small cycle before starting shall not exceed 10 price fluctuations

2. Use the upper edge to stop loss for shorting and the lower edge for long

3. The stop loss can be appropriately enlarged for light positions =Loss

4. When you make a profit of 20-30 fluctuations, push the stop loss position to the opening point

IV. Stop profit

1. Reduce position when encountering important moving averages (golden ratio can also be used)

2. Reduce position when encountering previous highs and lows

3. After making a profit, the market forms a platform or breaks the trend line and lightens the position

4. When the profit-loss ratio is 2:1 or 3:1 or above, push the stop loss position to the opening point

V. Fund management

1. Purpose

(1) Control losses, keep the trading curve upward, and maintain a good trading state

2. Clarify the maximum loss you can bear under normal trading conditions

3. Maximum number of consecutive losses: 5 times

(1) Control the maximum loss of a single transaction = total funds * 1/6 (this part is a matter of opinion, and leverage trading needs to be adjusted)