A brief talk about trend trading. If you think trend trading means going long when the market is rising and going short when the market is falling, then you need to read this article of mine. It may be the golden finger that breaks through that layer of window paper.
"Trading with the trend is a trading method that follows the price trend." This statement is understandable, but the key is how to divide the trend? Is it really only divided into rising, falling and sideways? Of course, this classification can be used, but it can be said that it is of little help to our trading, and sometimes it is not as good as the trader's sense of the market.
So we can think of it this way: is the probability of the trend continuing high or low? If high, follow the current trend; if not high, then making a reversal is obviously easier to profit from. This is trend-following, truly in accordance with the 'development' of prices!
Price action divides the market into four cycles, corresponding to four types of market movement strengths, which gives rise to various trading strategies. But generally speaking, the market is divided into two categories: 'strong' and 'weak'.
Strong indicates high continuity of the trend, so we should trade on the continuation.
Weak indicates a high probability of future reversal, so we should trade on the reversal.
You can compare it with your own trading. Taking long positions as an example, aren't losing reversal trades often happening in a sharp decline with very little rebound, while losing trades during continuation often occur when there's a pause in an upward trend, and then a fluctuation where you buy at the upper edge of the consolidation in the fluctuation zone, only to be tortured and unable to stand it, having to either exit manually or facing a sudden reversal that leads to a significant loss? Of course, these are not the only losing situations, but profitable trades are quite similar.
I recommend everyone to take a look at the interpretation of market cycles in price action.
I recommend everyone to take a look at the interpretation of stroke, line segment, trend, and other market forces by the Zen master in the theory of trading.
I won't go into specific cases or detailed knowledge here; it's hard to explain in just a few words. Everyone should explore and learn on their own.
In conclusion, following the strong and countering the weak is trend-following.
Finally, I wish everyone a Happy New Year 🎉#BTC走势分析 $BTC
