Define rolling position: In a trending market, after significantly profiting using leverage, the overall leverage passively decreases. To achieve compound profit effects, increase the trend position at the appropriate time. This process of increasing position is called rolling position.
The 'appropriate time' in the definition, in my opinion, mainly has two scenarios:
1. Increase position during a convergence breakout in the trend, quickly reduce the added position after the breakout to capture the main upward wave.
2. Increase trend positions during pullbacks in the trend, such as buying the dip at moving averages.
Key points:
1. After significant profits from leverage
2. Convergence breakout (triangle consolidation)
3. Quickly reduce the position after capturing the added trend position
4. If the pullback trend type is downward, add when the downward momentum exhausts. If daily downtrend, switch to 4-hour,
In two trend segments, divergence appears.
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