Many people don't know how to start reading the market. Here is a reading methodology:
1. Look at the background first: determine the trend background, whether it is a bull market, a bear market, a trend pause in the order of the bull market (oscillation in the rising stage), or a trend pause in the order of the bear market (oscillation in the falling stage)
2. Look at the cycle: look at the big cycle first, then the small cycle, and follow the trend to make orders. For example, if the weekly level is an upward trend, then you can only enter the long position through the daily level retracement, and choose the entry point through the 4-hour cycle. Do not make orders against the trend;
A. If you hold a long position at the bottom, you only need to do a good job of protection.
B. If you are short and want to enter, you need to enter near the upper and lower edges of the TR trading range, and you cannot do it halfway up the mountain.
C. If you are long, there are two ideas: a. On the left, near the bottom of the TR trading range, you can enter with a high support of the daily line with a shrinking volume. Divide into three positions and set a stop loss. b. On the right, after breaking through the top of the TR trading range, enter with a shrinking volume and a high support.
D. If you want to go short, there are two ideas: a. On the left side, near the top of the TR trading range, the daily line shrinks the upper shadow line, or a huge amount of stagflation enters, disperse the warehouse, and set a stop loss. b. On the right side, after breaking through the bottom of the TR trading range, enter after there is no demand rebound. After determining the above ideas, track the daily level of the market in real time, choose the corresponding ideas and then make a position plan.
3. Price and volume pattern: the length of K, the height of the trading volume, and the speed of change.
4. The nature of the price and volume pattern: the strength of the trend, the reasons for the price and volume pattern and the possible consequences.
5. Conclusion or prediction: Through the above two aspects of information, judge whether it is currently in the order of an upward trend or a downward trend.
6. Measures and actions: According to the trend obtained, decide whether to start action, such as: entering, leaving, tightening stop loss, each trend needs to have corresponding logic and strategy.
7. Holding time: enter the weekly trend, hold for one month, hold for one week at the daily level, hold for two or three days at the 4-hour trend, and leave when there is profit in the trend below 1 hour, which is basically ultra-short-term.
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