The market is in a state of shock most of the time, and only a few times does it show a clear trend. The essence of shock is the balance of long and short forces or light trading. The time and place of shock have different meanings. And the handling of shocks has become flexible due to the randomness of shocks. There is no fixed routine, only principled thinking. For general investors, to form a trading system during the shock period, they can start from the following perspectives: clarify shocks and trends, which is the first step. What is shock and what is trend; what conditions are signs of shocks, need to be vigilant, what conditions are likely to be shocks, what conditions are confirmations of shocks; what conditions are signs of the end of shocks, what conditions are likely to be the end of shocks, what is the confirmation of the end of shocks. What tools to use, Dow, moving average, trend system or other indicators. This step is not difficult. Trends and shocks have obvious differences in indicators. The initial performance may need to be observed and confirmed repeatedly, but once the market is determined, then all that is needed next is specific operating methods.

Observe the cycle and judge the impact of shocks on operations. If this cycle is shocks, then it is likely to be only part of the trend for the previous cycle, and it may be several trends for the next cycle. Therefore, different processing methods are required for different cycles. In this cycle, the strategy is to sell high and buy low, and use the shock tool for shock trading; in the previous cycle, follow the general trend and use the trend tool for trend trading; in the next cycle, follow the small trend and use the trend trading.

Different positions of shocks have different processing results. The shock market that appears at the resistance and support positions is prone to direction. Generally speaking, this place should have entered the market before the shock is identified. With the repetition of the market, the shock market is gradually exposed. If you encounter a stop loss at this time, then wait patiently for the opportunity to enter the market at the end of the shock. The shock that occurs at the end of the market usually means that the next reversal is coming. In gold or foreign exchange, pay special attention to the shock at the top or bottom range at the end of the market. Usually a big positive line or a big negative line will break through the shock, creating the illusion of a continued trend, and then the price will slowly fall back until it engulfs the big positive or negative line.