It includes six categories: K-line, shape, trend (kinetic energy) index, price, time and risk control (profit and loss ratio).
Step 1: Use graphical forms and trend indicators to determine direction.
There are three situations in the market, that is, an upward trend, a downward trend and a range of shocks;
You can use the Berlin Band and moving averages to see current market trends, and you can cut into the general categories of the market from the graphical analysis.
Usually, starting from the weekly chart, the daily chart, four-hour chart and mini-chart are gradually identified, that is, the multi-time comprehensive judgment is based on the small.
Step 2: Use the K-line and the momentum indicator to identify the current market situation and whether there is upward or downward momentum.
1. Use the K-line combination to identify the direction of kinetic energy or reverse signal.
2. The power of a single K wire can be seen within 5 or 15 minutes.
3. Kinetic energy index can use random index, and use random index for 5 or 15 minutes to find the entry point.
Note: This method should only be used after refining the analysis in Step 1.
The third step: risk control is the key link of margin.
Everyone should consider whether to enter the market based on their ability to withstand losses and expected profits.
1. For example, if the account is divided into 10000 based on market analysis: if the stop loss of entering the trade is 80 based on the analysis, it will enter the standard hand.
If the trade fails, the loss after clearing the loss is $800, or 8% of the principal.
For safe trades, trading losses should be limited to 5-8%.
2. After the loss is planned, whether the comparison between the expected target profit and the risk cost is cost-effective, namely the so-called profit and loss ratio.
A profit/loss ratio of more than 1.25 is a cost-effective trade. 3. How to Determine where your losses are safe and effective. The number of stops is relative rather than absolute.
It should be judged according to the analysis of the first step pattern and trend index and the evolution of the market in the next step, such as the upper and lower edges of the channel, the edge of the integer bit, the high and low levels of the pattern reversal, etc.
To sum up, the appeal of trading is that there are huge opportunities in this market, but also huge risks.
There is no get-rich-quick myth, nor is there a 10% gain in one day.
Everyone should enter trading based on their risk tolerance and find trading opportunities that identify them and manage their risk.
Don’t regret missing out on foreign exchange trading opportunities.
This market is not afraid to miss, but to make mistakes.
We have to constantly analyze our own operating sheets, calculate the profit and loss ratio for every 20 trades, and constantly adjust our own trading system.
On the other hand, depending on your current capital position, you should learn to accumulate principal over time, but the richer your principal, the larger the individual transactions you can make because of your increasing risk tolerance.
Greed is accompanied by fear.
Greed begets fear and fear begets panic.
When panic sets in and you lose your mind, you fail.
As Europe’s energy crisis intensifies supply constraints, oil prices have enjoyed a third straight pre-Christmas rally and gold has held steady.
Please pay attention to the specific operation, the market is changing rapidly, investment needs to be cautious, the operation strategy is for reference only.
