There is not much fluctuation this week. For example, the currencies I have arranged have come to the pressure after the rise last week, so they need to fluctuate and accumulate energy.
The purpose of the fluctuation is to digest the selling pressure from above. When the selling pressure is almost digested and those who should get off the bus get off, the main force will exert force again. This is the conventional trading logic.
Just like the market of big cakes, after two and a half months of oscillation and correction, it stopped falling on May 2, and there have been analyses before.
Then on May 15, the large-volume big positive line confirmed the breakthrough of the long-term downward trend line and ended the downward trend.
So the current market has changed from the previous highs and lows to the current highs and lows.
The trend has reversed and the essence has changed, so all the clues on the market will revolve around the long army.
In the downward trend, every rebound is for a better decline and will continue to break the support.
In the upward trend, every callback is for a better rise and will continue to break the pressure above.
When we determine the trend, we can go with the trend.
The big cake market is now very obvious, breaking through the "long-term downward trend line", the high and low points begin to move up, and the retracement level weakens.
The above are all clues to verify that the current "upward trend" belongs.
The trend is determined, then we know that the callback is for the "special attribute" of a better rise, so it is easy to track the trend.
As can be seen from the figure, this round of callbacks is not large, and the volume is continuing to shrink, indicating that the short force is weakening.
This morning's closing did not break the previous low, and a "piercing pattern" appeared on the BOLL middle track, indicating that the support below is relatively strong.
Combined with the above clues, it shows that the possibility of continuing to fall sharply has become smaller and smaller. On the contrary, with the blessing of the background trend, the long forces are beginning to stir.
So, finally remind the partners who are shorting again, pay attention to the risks. Even if there is a callback, the callback will be very limited, and the risk is far greater than the return given by shorting.
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