Why can't the trend be completed in one go? Or why is the healthy trend up-sideways-up or up-correction-up.
The market is composed of 90% leeks + 10% professionals (institutions or full-time traders). Professional traders are divided into intraday short-term and long-term traders.
When the price has been rising for a period of time, the market will naturally produce a gene for profit-taking. Because there are huge profits to be realized. If the demand is not realized, the subsequent rise will be difficult to continue, and the more it goes on, the more dangerous it will be. Because
1. When killing the decline, ordinary traders may accept every downward price in order to protect profits. The potential selling is very huge, and the decline may be more than 10-20%.
2. The demand entry party will wait and see, and there is no effective reference target after a short-term sharp rise.
When the callback or sideways movement releases the fear of high prices within a certain period of time, traders accept the chips at that price. At this time, the chip structure is healthier because the traders who are replaced are willing to buy at a higher price. The expectations of the traders who get on the relay will also be higher, and they will not run away after a slight increase. Usually, a 1:1 stop profit or a reference to a larger level of resistance will be set.
After continuing to rise, ordinary traders who got off the train in the early stage will be annoyed to sell and will enter at a higher price during a short callback. The demand will rise more than the first stage, causing a rush to buy climax, and the pull will be more fierce.
After the second stage of rise, chart traders will expect a three-push reversal, technical traders will look at macd divergence, volume and price traders will look at the follow-up after the rush to buy climax, and moving average traders will look at the golden cross and dead cross. At this time, the core is to protect profits. When the 5F K fails to close at a high level when it falls back from a high, it starts a downward trend. This is when we leave the market.
