Hello everyone, today is March 27th. Currently, the stock market has completed its sixth round of gains on the daily chart. Looking back at the previous bull market, we can see that it is currently in a stage of daily fluctuations and shocks, and there is about a 50% probability of a correction. If the daily chart continues to rise and breaks the previous highs, the market is likely to remain in an uptrend. Yesterday, I reminded in the family group that friends who intervened at a lower price in the early stages of the bull market should consider moderately reducing their positions when they are close to the high point before the daily line.
On the four-hour chart, we are currently in the initial wave and the second sideways phase of an upward cycle. Historical data shows that once this sideways phase is broken, the market tends to show strong upward momentum. For investors who are waiting for a sideways breakout, using the one-hour chart to look for opportunities to continue to move upward will be an ideal entry point. For high-level sideways trading, it is recommended to adopt a 1:1 short-term lock strategy in a shorter time frame and cancel the stop loss on both sides to avoid losing existing profits.
It should be pointed out that the strategy of locking short orders should only be considered when long orders are profitable, in order to lock in profits and prevent drawdowns. When in a loss state, the strategy of locking should be avoided to avoid locking in losses. Our strategy focuses on clear position management and firm stop-loss principles to prevent large losses. Doing so will give you a clear understanding of the maximum loss you may face in each transaction. In successful transactions, profits are unlimited. Every successful transaction is a plus for grasping the general trend, and gradually cultivates a healthy trading mentality and confidence.
It is irresponsible not to recommend setting stop loss and encourage blind following. Failure to set stop loss may lead to serious consequences and even liquidation. We cannot guarantee profits forever, but we can protect capital by controlling losses.
Today's trading strategy: The market has broken through the antenna level and started a new upward cycle. The four-hour chart shows that the market is in a high-level shock period. Whether it can break through the 69500 to 71000 range to form a relay rise will be the key. A successful breakthrough may bring strong upward momentum; if it fails, the four-hour chart may enter a period of adjustment, with support below at 69100, 66900 and 65200. Investors holding short positions should consider intervening at these levels. When operating in a shock range, both long and short positions should be cautious, especially contract traders, who must set stop losses and lock in profits in a timely manner when they make profits.
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