I. Trend Judgment Two Methods for Trend Judgment a. Moving Average: Smoothes price fluctuations by calculating the average price over a specific period, making it easier to identify trends. The 20-day moving average is commonly used for trend judgment. In an upward trend, when the price falls to near the 20-day moving average and shows signs of stopping the decline and rebounding, it is a good time to go long. However, investors should closely monitor market dynamics and changes in technical indicators, and reasonably set stop-loss points to control risk. In a downtrend, when the price rebounds to near the 20-day moving average and shows signs of stagnation and decline, it is a good time to short. However, investors should closely monitor market dynamics and changes in technical indicators, and reasonably set stop-loss points to control risk.
The fundamental reason is that they are unclear about what they should be waiting for.
They are waiting for familiar and certain trading signals.
Therefore, if you cannot patiently wait, it may be because your mindset is not mature enough, or your fundamentals are not solid enough, and you are unclear about what signals to wait for.
Only by clarifying the signals to wait for does waiting hold meaning. We need to wait for the signal to build positions, as well as the timing to close positions after a significant rise.
Of course, once we understand the market's operating rules and rhythm, we can formulate corresponding trading rules and profit according to these rules.
Subsequently, everything will gradually get back on track, and the rules will gradually become habits.
Bullish when the price is above the 20-day moving average, bearish when the price is below the 20-day moving average. ### One, Definition and Significance of the 20-Day Moving Average 1. Definition: The 20-day moving average is the weighted average of the closing prices over 20 trading days. Connecting the points calculated each day forms the moving average. It indicates the average trading price level of the stock over the past 20 days (approximately one month). 2. Significance: The 20-day moving average is an important relay line for examining the transition of stock prices from short-term trends to mid-term trends. It can avoid the shortcomings of trading too frequently with the 10-day moving average, resulting in too many mistakes and high trading costs, while compensating for the lagging nature of long-cycle moving averages.
The essence of trading volume is competition, it is disagreement; there are buyers and sellers that create volume, which means that any massive volume indicates a change, and extremes will inevitably reverse.
In fact, trading is a process of waiting. No matter how good the technique is, if one's character is not strong enough, it is impossible to profit. This is why so many people want to attain enlightenment.
Trading cryptocurrencies can be said to refine a person's character, second only to entrepreneurship. It is said that the dopamine released from making money trading cryptocurrencies is even more than that from being in love. #交易认知