k线知识

About the mindset control issue when making contracts
First of all, everything starts from "feedback stimulation".
When you were a child learning to speak and do things, when you did well your parents encouraged you, and when you did poorly your parents criticized you, that is "feedback". Being encouraged makes you happy, being criticized makes you unhappy, that is "stimulation". Through feedback stimulation, conditioned reflexes are formed, and behavioral preferences are strengthened.
In terms of making money, the feedback cycle in physical businesses is very slow; farmers plant crops and only receive feedback once a year.
However, the trading market is different; the feedback cycle is very fast, and it is easy to make a lot of money or lose a lot in a short period.
Contracts are even faster than general trading; they are like an "automatic vending machine" where you can get stimulation feedback anytime you want. Therefore, it is easier to develop preferences & addictions under "feedback stimulation".
Next, let's talk about trading preferences.
Why do people have strong trading preferences?
Because once they accidentally made money using that method, after repeating it a few times and tasting the sweetness, they always think about “waiting for the rabbit” to make money using the same model.
Why do some people always try to catch the top, some always try to catch the bottom, some always chase breakouts, and some always think about copying? These methods gave them huge rewards at certain moments, but at other times they lose money every day.
But don’t think that losing money will change people’s habits.
Pain can discourage people from being proactive about that model and lead them to doubt the problems with this way of playing.
However, pain itself is a stronger feedback stimulus than pleasure, which may lead people to another problem, “over-trading”.
So how do you adjust your trading preferences?
It’s simple, do the opposite for stimulation.
If you get beaten up every day for shorting, then go long; after making a few profits, you will taste the sweetness and no longer have a strong preference.
Again, let's talk about over-trading.
Trading is a quick feedback automatic feedback machine. Whether it encourages you or strikes you, it will give you strong stimulation. The more you trade, the more trading there will be, which is why some people are addicted to short-term trading and cannot extricate themselves.
So how do you solve over-trading?
It’s simple, set a "cooling-off period"; exchanges generally have this function, so take a break whenever you trade too frequently.
It's somewhat similar to the process of detoxification.
Finally, let’s elevate the discussion.
What feels good generally doesn’t last and cannot be replicated.
Pleasure is instinctual, but making money requires patience.

A little knowledge point of K-line every day. It is recommended to collect and follow it.

Double Fly: Appears during the rise, the closing price of the first positive line is higher than the closing price of the previous positive line, and the second negative line completely covers the first negative line. Peak signal, bearish outlook
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A little knowledge of K-line every day. It is recommended to pay attention to it first and then collect it.

"Three black pawns" combination
When this combination of continuous "three black pawns" falls appears in the high-end area, it means that the rising market trend has ended and the falling market trend has begun.
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Understanding K-lines means understanding the expectations, suspicions, fantasies, greed, and fear of human nature in trading... K-lines are the most fundamental symbols of market movement, carrying the trajectory of capital flow and recording the process of capital gains and losses.
In fact, the analysis of K-line charts has a strong subjective color, which leads to different methods and results for each person.
This depends on a person's character;
Secondly, it depends on a person's comprehension;
Thirdly, it depends on a person's experience;
Fourthly, it depends on their market philosophical view;
Fifthly, it depends on their understanding of risk;
Sixthly, it depends on their consideration of returns;
Seventhly, it depends on the influence of the surrounding environment;
Eighthly, it depends on the characteristics of the market they are trading in;
Ninthly, it depends on their capital scale, and so on.
K-line charts are not a science, but a concentrated reflection of market psychological factors. You can grasp its nature, but cannot grasp its degree; it leaves many subjective judgments for everyone, causing those who try to quantify it to ultimately fall into confusion.
This is a world that statistics cannot understand. Rationality is often the greatest enemy. There is no absolute certainty or unchanging element here, only general experiential summaries. Just as there is no perfect trade, there are no perfect patterns in K-line charts. When analyzing patterns, you should not be confined to the patterns but should seek the intrinsic essence, understanding the changing power dynamics between bulls and bears.
Western technical analysis emphasizes scientific rigor, while Eastern technical analysis emphasizes dialectical thinking. Combining the strengths of both, the best trading strategy is: keep an eye on your losses and let profits run. Therefore, even if everyone has their own methods, in the end, all methods converge to the same source.

A little knowledge of K-line every day

Three Crows of the Plunge: Appearing on the way up, composed of 3 big Yin (medium Yin) lines, each time it opens high and closes down. Peak signal, bearish in the future.

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Pattern introduction: rising pattern. After a long real body Yin line, a real body star line appears, followed by a Yang line, the upper end of which enters the real body of the first Yin line. The pattern formed by these three K lines is called the Morning Star, or the Morning Star. Buying reference position: the day after the star line appears, if the stock price continues to rise and crosses the real body of the previous Yang line, it constitutes a buying point.
Stop loss reference position: the lowest position of the star line. #k线知识

A little knowledge of K-line every day. It is recommended to like and collect it first.

Yin Yin pregnant cross
Rising pattern.
In a downward trend, a medium or large Yin line appears, followed by a cross star line contained in the body of the previous Yin line. This pattern is called Yin Yin pregnant cross line, also known as cross pregnancy.
Buy reference position: After the Yin Yin pregnant cross line appears, if the stock price continues to rise and crosses the cross line body the next day, the buy point appears. Stop loss reference position: the lowest point of the pattern.
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"Dark Cloud Cover" combination
After the price rises with a positive line, a negative line appears, and the negative line makes the price fall below 1/2 of the previous positive line.
This combination often appears when the market has risen sharply for a period of time, even when the price has reached a record high, indicating that the market has reversed and will then fall. #k线知识

The dawn
In the rising pattern, in the continuous decline, after a period of decline, a large Yin line is closed, and then a large Yang line is closed above the half of the Yin line, which means that the bulls are exerting force, but they have not completely taken the advantage. This pattern is called the dawn.
Buy reference position: the day after the dawn pattern appears, if it can be confirmed that the stock price does not fall below the lowest point of the pattern, the buy point will appear.
Stop loss reference position: the lowest point of the pattern. #k线知识