Brother Ming, how can we judge whether the trend is a relay or a turning point?
Unfortunately, Brother Ming has no way to know in advance whether the market is a relay or a turning point.
Facing the future trend, no one has the ability to predict the future, and there is no magical indicator that can predict the future and know in advance whether the market will relay or turn.
But not knowing what the market will be like does not affect trading, because the essence of trading is trial and error. After a pattern comes out, the market has the possibility of relaying, so trade according to the relay. If the market reverses, you will naturally make money. If the market does not reverse, stop loss.
The K-line reversal pattern in the chart below is such a logic. The first reversal K-line is formed, but the market does not reverse and continues to fall. After the second reversal K-line is formed, the market will go long.
The first reversal K-line only stops at 29 points, but after the second reversal K-line succeeds, it goes out of 180 points of space, and the profit and loss ratio is very reasonable.
In fact, trading is a game of probability. Any kind of pattern reversal has a probability. We don’t need to know whether the trend will relay or turn next. What we need to do is to optimize the signal through technical standards, and at the same time combine the rules of fund management to give full play to the probability advantage of the pattern to achieve profit. #技术分析