mex group-How do those short-term trading experts do trading?

Short term trading experts have always been like gods in existenceforeign exchangeIn the market, they will not appear in order groups (because you can't keep up with their pace and haven't posted orders); They won't come out and chat with you either (because short-term trading requires concentration).
It is precisely because they are not easily visible that many people are fascinated by short-term trading techniques, and pushing, placing orders, and ultra short term seem to have become the career development direction that novice traders aspire to.
Today,Mex GroupLet me reveal to you how those short-term speculators do trading!



I Utilizing technical adjustments for short-term development
In the foreign exchange market, no matter how sharp the upward trend is, it is impossible to reach the top in one breath, and no matter how severe the downward trend is, it is difficult to fall straight to the bottom. There must be consolidation in the middle. Only after consolidation can a new wave of gains or losses be launched. This consolidation is technically referred to as a technical adjustment.
Technical adjustments are caused by three forces:
l One is that some traders with floating profits make profit to close their positions, and technical buying or selling puts pressure on the market in the opposite direction;
l The second is that some traders with floating losses adopt an average price strategy, adding a dead code, resulting in a tortuous trend;
l Thirdly, some people feel thatThis wave is already quite similar, and the short-term assault has also had an impact on the price range.
Technical adjustments provide us with an opportunity to take a short-term approach. Typically, such an adjustment is equivalent to 30% to 50% of the previous period's increase or decrease. Grasping it, the profit is also quite considerable.
The emergence of technical adjustments also has signals to be found. For example, in an upward trend, a bullish candlestick is pulled out for three consecutive days, but each candlestick becomes shorter and the increase decreases day by day; Or, after several consecutive days of gains, a high opening and low closing, pulling out a bearish line with an upward shadow, these are signals that the upward trend is about to adjust.
On the contrary, in a downward trend, a bearish candlestick is pulled out for three consecutive days, but each candlestick becomes shorter and the decline decreases day by day; Or after several consecutive days of decline, a low opening and high closing, pulling out a bullish line with a downward shadow, these are all signs that the downward trend is about to rebound.
It is in line with the principle of following the market trend to take a short position when there is a correction in the upward trend, or to take a long position when there is a rebound in the downward trend. Even if the previous stage has already seized the opportunity of an upward or downward trend, and then takes advantage of the adjustment situation to sell or buy back, then it can truly achieveThe most ideal state is to pick both watermelon and sesame seeds.

Using technical adjustments for buying and selling can only be done in the short term and cannot be too greedy. Generally, when the adjustment reaches a maximum of 50%, it should be considered as over. Because even if it'sThe users of the "average price strategy" will quickly close their positions and leave the market at this price point, roughly in a draw. You are too greedy to go, and when the market turns around and returns to the main direction, it becomes "greedy for sesame seeds and losing watermelons".
Whether it is a technical adjustment during an upward trend or a downward trend, it does not mean a change in the overall direction. When an adjustment occurs, the basic factors of the market remain unchanged, market sentiment remains unchanged strategically, and chart trends remain unchanged overall. Therefore, the adjustment is temporary. The fist recoiled in order to strike forward more forcefully. This is something we should remember clearly when using technical adjustments for short-term operations.

II Pay attention to the signal for daily turning
There is no good market that only rises but does not fall, nor is there a bad market that only falls but does not rise. The alternating occurrence of ups and downs isfuturesThe basic rules of the trend. However, there are two different types of evolution in the reversal of price fluctuations:
l One is a change in the overall direction, where a large upward trend turns into a large downward trend or a large downward trend turns into a large upward trend. This kind of turning is usually marked by double tops or double bottoms, three times to the top or three times to the bottom, head and shoulder tops or inverted head and shoulder bottoms, large domes or large domes, etc. It is a major action and usually takes about three weeks to one and a half months to conceive.
l Another type is technical adjustment, which means there is a small drop during a big rise or a small rise during a big fall. This kind of turning usually follows a high opening and low closing black line, often with an upper shadow; Or a low opening and high closing line, often marked by a red line with a downward shadow, is a minor action that is completed within one trading day, hence it is called a single day turn.
Profit taking is the main week that generates a single day turn. A large upward or downward trend often consists of several small upward or downward waves. After a period of ups and downs, give up and digest before moving on to the next wave of ups and downs. At the top of each small rising wave or at the bottom of each small falling wave, it is more concentrated. Closing selling or closing buying can cause a one-day turn.
The most unique feature of a single day turn is that its opening and closing prices have a significance of connecting the past and the future. The first characteristic of a single day turn is to rise for several consecutive days and then rise short, or fall for several consecutive days and then fall short and open low. This has continuity for a rapid upward or downward trend that lasts for several days, and can be said to be"Chengxian".
After opening high, buyers with floating profits are taking advantage of the high prices to arbitrage and push down the market price, which is opposite to the previous upward trend, resulting in a daily shift from upward to downward; Alternatively, sellers with floating profits after opening lower positions have taken advantage of the low position to close their positions, snatching up the market price in the opposite direction to the previous period of decline, resulting in a daily shift from decline to rise.

This is the second characteristic of daily turning. This point is indicative of a small drop or rise in technical adjustments in the coming days, and can be said to beAfter starting.
After a single day turn occurs, the subsequent adjustment is generally equivalent to a 30% to 50% increase or decrease in the previous period. Compared to leveraged foreign exchange, if mastered, the profits are quite substantial. Therefore, after a sharp rise or fall, one should pay attention to whether there are signs of a single day turn. The situation of turning in a single day is about to be determined, that is, going short or long towards the end of the market can often earn the decline or rise in the following days.

III graspA great opportunity for "head and shoulder support"
As a turning point between an upward trend and a downward trend, the top of the head and shoulders is a relatively reliable downward signal. Understanding the formation pattern, morphological characteristics, and corresponding buying and selling strategies of the head, shoulders, and bottoms can not only seize important short selling opportunities, but also, in the opposite case, seize clear bullish opportunities based on the upward signal of the head, shoulders, and bottoms.
The so-called head and shoulder tops are formed in this way: following the previous stage's upward trend, the trend rises toAPoint begins to fall back; fall toBThe point is able to stand firm; Another round of upward momentum, surpassingAPoint at the price point, in order toCPoint at the top of the rising wave, then fall back and slide to the point where it is related toBAt a similar level, atDStop and then turn back upwards, rising to the same level asAA price range with little difference in pointsEStop and then turn around and plummet, when it breaks throughBAndDThe neckline formed by two low points forms the entire downward trend. This shape has three high points, with the highest point in the middle, resembling a person's head and lower sides, resembling two shoulders, so it is called "head shoulder top" according to the image.

l The head and shoulders are generated during an upward trend. When the right shoulder does not appear, just looking at the left shoulder and head, butThe upward trend of "waves rising one by one". Even if buying on the left shoulder, the situation is still very good at the price above the head;
l Falling from the top of the head, turning back and up, reaching a price similar to the left shoulder, then turning sharply downwards, the right shoulder takes shape. At this point, contracts bought in the one head and two shoulders area become unprofitable with significant floating losses;
l When the trend falls below the neckline, because the entire head and shoulders are bottomed out with the neckline, breaking through the neckline, all the bullish positions in the head and shoulders top area are wiped out, and no one is spared. Bears took advantage of the situation and fell into the pit, while bulls stopped and accepted losses, exacerbating the decline.
The formation of a head and shoulders is the foundation for a major decline. Due to a major battle, planning usually takes about a month and a half, and it takes nearly forty trading days to conceive and take shape. And the drop is at least equivalent to the distance from the top of the head to the neckline.
When the left shoulder and head come out, if we suspect it may be a head and shoulder top, we can go short, but we need to set a limit and stop loss, and surrender if it rises above the head.
Because it has been proven that it is a wave by wave upward trend, not just a head and shoulders. When the right shoulder has not yet broken the neckline; We can also estimate that the trend will break the line and sell short first, but we also need to set limits. If we turn around and break through the top of the right shoulder, we will stop losing and leave the market, because this development has shown that the trend is not the true top of the head and shoulder, but just a false move that leads to short selling. Don't encounter this trap!