The rebound came as expected, and the short liquidity of 63500 was liquidated, but the price was constrained by the retracement of the local high and low points of 0.618-0.66, which may be a stop-profit position for short-term long orders;
It is worth noting that during this wave of rebound with the trend breakthrough, the spot premium did not show a significant green or growth, indicating that the power that led to the price increase mainly came from futures.
At the same time, the Nikkei index and US stocks fell to varying degrees.
Therefore, even if you choose to go long with the trend, you must consider the possibility that this is just a rebound. At present, my two strategies have turned long, and the stop loss is near 62300. There is definitely no problem following the general trend, but the premise is that the risk can be controlled;
Thinking about it, ask yourself a few questions:
1. After six months of fluctuations, is it more likely to continue to fluctuate? Or is it more likely to choose a general direction?
2. If you think the general direction is about to come out, then before that, what kind of setup (accumulation, induction, preparation) does the market often have?
3. Based on these possibilities, which positions are the key prices where the long and short forces are completely unbalanced and the winner is determined?
4. Before breaking through or falling below these key positions, do trend trading with repeated stop losses or counter-trend trading with continuous stop profits?
I sorted it out myself, and choosing the former seems to be more cost-effective. After all, the past six months have been a paradise for large-band counter-trend trading and grid trading. A set of trading strategies may face a retracement after long-term profits.
As expected since April, the trend market is coming!
