1. Trend Reversal Signal: In a downtrend, if there are three consecutive bullish lines rebounding, and in an uptrend, the bearish line pullback does not exceed three consecutive bearish lines, it is an early warning signal of a trend reversal.
2. Oscillation Breakthrough Guide: In a volatile market, after a period of rising volume and stable prices, it is usually accompanied by a major breakout. Enter early when there are two bullish volumes exceeding previous bearish volumes after a pullback.
3. Holding Currency Tools: Strong market holding strategy, simple and straightforward, as long as the daily line does not break the rising moving average, hold on, ignore technical indicators, and avoid being influenced by a high-level dull state.
4. K-line Combination + Interpretation: A medium bullish line combined with two doji patterns usually indicates a bullish continuation, a typical bullish pattern in a strong market.
5. Market Anomaly: The market often proves that the majority's views are incorrect; the smoke released by the main force and market tops often appear when people have a consistent optimistic outlook.
6. KDJ Indicator Signal: When encountering consecutive large bearish lines, when the KDJ's J line is less than -12, it indicates that a short-term rebound is about to come. It is recommended to wait for the rebound before making judgments.
7. Breakthrough Bullish Line Characteristics: When breaking upwards, a bullish line turnover rate of around 8% is a healthy attack amount; too large or too small may trigger a pullback.
8. Resilient Mindset: When trading is not going well, stay calm, endure the pain of rebirth, and you will welcome the beauty of rebirth.
9. Risk Control: Avoid being fully invested, leave room for error, the market has risks, act cautiously, and leave yourself space for correction.
10. Emotion Regulation: Adjust your mindset, treat market fluctuations calmly and rationally, and avoid letting emotions affect decisions.
11. Learning and Communication: Do not isolate yourself, communicate and share with others. Even if opinions are wrong, it is part of growth; progress together.
Explaining indicator divergence in 2 minutes! Core! (Essential content)
Is there a low-risk trading method that allows us to sell when prices approach the trend top and buy when approaching the trend bottom? The answer is yes, there is indeed such a method, which is divergence trading.
Experienced traders are familiar with the concept of divergence, however, I want to emphasize two types of divergence: one is the divergence between fundamentals and technicals, and the other is the divergence between price and indicators.
The so-called divergence between fundamentals and technicals is that the fundamentals are bearish while the technicals are bullish. In this case, I do not participate. If you think back to the trading method I introduced, 'Inventory + Basis + Technical Signals', you will find that when the market rises, we choose to go long on low inventory and futures deeply discounted varieties, rather than high inventory and futures significantly premium varieties, because the former resonates between fundamentals and technicals, while the latter diverges. The potential thinking behind this trading method includes a margin of safety. Of course, most technical analysts do not pay attention to fundamentals and will not focus on the divergence between fundamentals and technicals. I am more cautious; I do not participate in divergences from fundamentals or incomprehensible technical rises.
The so-called divergence between price and indicators means that the K-line price pattern reaches new highs or new lows, while the corresponding technical indicators do not reach new highs or new lows.
This is a trading method that most technical traders often use in practice. The K-line pattern reflects price trends, and technical indicators reflect momentum trends. When prices reach new highs or lows, it reflects changes in price trends, while technical indicators do not reach new highs or lows, indicating a depletion of upward or downward momentum. As the price continues along the original trend's momentum depletes, it indicates a higher probability of a market reversal.
So what kind of technical indicators do we choose? Actually, it doesn't matter what indicators you use; you can use RSIMACD, stochastic indicators, CCI indicators, etc. If the price highs keep rising, the oscillation indicators should also keep rising; conversely, if the price lows keep dropping, the oscillation indicators should also keep falling. If there is inconsistency between the price and oscillation indicators, and divergence occurs in the trends of price and indicators, it will show divergence. This kind of divergence is a conventional divergence.
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