Master the Market Trends for Steady Profit 🧧🧧🧧🧧🧧🧧🧧🧧🧧🧧🧧6666 Determine Buying and Selling through Market Trends
1. Trend Judgment: Follow the Trend is Key
The core of market trends is 'trend' (uptrend, downtrend, sideways), most methods are based on the principle of 'trading with the trend':
1. Uptrend: High points continuously rise, low points also continuously rise (e.g., moving averages in a bullish arrangement: short-term moving averages above long-term moving averages, and all sloping upwards).
- Buying Timing: When it retraces to support (such as moving averages, previous low points, trend lines) and does not break the level;
- Selling Timing: When it breaks key support (such as breaking long-term moving averages, trend lines), or when a top reversal signal appears (e.g., 'double top', 'head and shoulders top').
2. Downtrend: Low points continuously decrease, high points also continuously decrease (moving averages in a bearish arrangement: short-term moving averages below long-term moving averages, and all sloping downwards).
- Selling/Shorting Timing: When it rebounds to resistance (such as moving averages, previous high points, trend lines) and does not break through;
- Buying/Covering Timing: When it breaks key resistance (such as breaking long-term moving averages, trend lines), or when a bottom reversal signal appears (e.g., 'double bottom', 'head and shoulders bottom').
3. Sideways Trend: Prices fluctuate within a range (with clear support and resistance levels).
- Buying Timing: When it retraces to the lower support of the range, and there are signs of stabilization (e.g., bullish candlestick rebound, increased trading volume);
- Selling Timing: When it rebounds to the upper resistance of the range, and there are signs of pressure (e.g., bearish candlestick retreat, decreased trading volume).
2. Key Signals: Candlestick Patterns and Technical Indicators
1. Candlestick Patterns:
- Reversal Patterns (indicating a possible change in trend):
- Top: Double Top, Head and Shoulders Top, Evening Star (three consecutive candlesticks: bullish → doji → bearish), Dark Cloud Cover (a bearish candlestick following a bullish candlestick that penetrates deeply into the bullish candlestick's body).
- Bottom: Double Bottom, Head and Shoulders Bottom, Morning Star (three consecutive candlesticks: bearish → doji → bullish), Piercing Pattern (a bullish candlestick following a bearish candlestick that penetrates deeply into the bearish candlestick's body).
- Continuation Patterns (indicating a possible continuation of trend):
- Uptrend: Flag, Wedge, Ascending Triangle (highs are flat, lows are rising, after breaking the upper edge, the uptrend continues).
- Downtrend: Flag, Wedge, Descending Triangle (lows are flat, highs are declining, after breaking the lower edge, the downtrend continues).