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Which is better for exiting, naked K or moving average?
The difference between the two exit methods is that exiting with naked K is more aggressive, while exiting with moving average is more conservative.
Exiting with naked K is a short-term trading logic, because the frequency of reversal patterns in naked K is relatively high. Even in a trending market, a small callback may form a reverse reversal pattern. At this time, the order will exit and the holding time is short.
Exiting with moving average is a trend-oriented trading logic. In a market with a relatively smooth trend, the K line will usually run along the moving average for a period of time. Even if there is a callback, it will not break through the moving average, and the holding time is long.
Of course, exiting is a part of the trading system, which should be combined with the confirmation trend, opening method, and stop loss method of the trading system.
In short, there are only two criteria for choosing which method to exit. The first is to achieve profitability, and the second is to facilitate execution.
ps: The core of trading is to grasp the essence and laws of market operation. Event-driven and disk change analysis will make your trading simple and incredible. Analyzing market changes is to use your own methods to find trading opportunities. This analysis does not specifically refer to various technical analyses. Being obsessed with technical analysis often leads to failure. If technical analysis can cure all diseases, then everyone can become a trading master. Technical analysis is just an auxiliary analysis method, which can be used as a simple reference.