How to operate the band

During the adjustment of the market, the rise and fall made investors like the second monk scratching their heads. As soon as the market rises, they chase after it, and as soon as the market falls, they kill it. Finally, if you take stock of your own record, it must be a lot of losses. The reason is that investors' operation concepts in adjusting the market are incorrect and band operation methods, especially buying opportunities, are not accurately grasped.

The operating philosophy of adjusting the market is to first reduce the number of operations and reduce the profit expectation of each operation. This is a premise. Only in this way can we achieve the correct performance of each wave and generate the greatest possible profit.

If the above operation concept is put into practice, it is how to do a good job in each wave of rebound and avoid each wave of decline. This article mainly solves how to participate in each wave of rebound, that is, how to identify and intervene in each wave of rebound, and the most important thing is to confirm a safe and favorable buying point. There are many investors who choose to operate when they judge that the market is about to bottom, and constantly intervene in the dip until the phased bottom appears to obtain rebound benefits. This method looks good, and may have lower buying costs or even achieve the lowest price, but in fact this operation method has certain risks and is not the best operation method. A better operation method is to see the bottom stop signal first, and then use the second low to confirm the validity of the bottom stop signal to the high point of the rebound that appears after the stop signal is formed as a buying area. This way, it is very safe to operate, and the cost is relatively low.

We know that there is a law in the foreign exchange market: after a wave of rising prices ends, there must be a wave of falling waves to correct it. Similarly, after every wave of falling prices, there must be a wave of opposite rebounds to correct it. This is in line with the famous saying of the foreign exchange market: rising is the curse of falling, and falling is the source of rising prices. Since there is such a law, we can find the possibility of future rebounds in the process of falling prices. So when you make an intervention decision, please take a serious look to see if there has been a decent decline in the month or more before the recent bottom of the current market. If not, please don't make a buying decision for the time being. This is a small premise for intervening in a rebound.

Or our current market is on the way down, and the preparation we have to do is to wait for the stop-fall signal to appear in the market. Observe whether the decline magnitude and corresponding time of the falling market have been similar to your expectations; observe whether the market has entered an accelerated decline, falling below the lower rail line of the downward channel, and the market panic; observe the entry of low funds quietly, and individual currencies move against the market. All of these will be early signs of the emergence of low stop signals. The so-called stop-fall signal refers to the classic long K-line combination and long pattern at the end of the market decline. But the stop-fall signal is just a signal, and it needs further confirmation from the market. It may be the lowest point of the rebound, but it is not a buying point, because its safety factor is not high. The buy point should be the second lower point in the market slightly above the stop signal. It is somewhat similar to the right bottom of an up-dipping double bottom. Of course, the key is to identify and find the stop signal. Only after this signal appears and passes the market's test of its effectiveness can we make a buy judgment.

Of course, sometimes there is not necessarily a confirmed second low, if so the market is easier to identify, if the market continues to rise steadily after 7 or 8 trading days after the signal, then it can generally be confirmed that the rising market has begun, and an intervention decision can be made.

Therefore, when we adjust the market, we just need to pay attention to and look for the stop signal at the end of the falling band, and then wait for the appearance of buying points. This operation can greatly reduce the number of operations and improve the probability of success, so as to achieve the purpose of stable profits in adjusting the market. Avoid chaotic markets from bringing you purposeless operations.