Forex market master trading strategy

First, sell short A, the foreign exchange price at a high level to form a 2B position opening near the previous high, the stop loss is placed near the new high + 5 points, up the ante principle is effective 2B to form a stop loss is also located near the new high.

B. The MACD red column gradually shrinks, and it is best to have a straight column divergence or a top divergence. KDJ has a continuous top divergence near the new high with signs of a dead fork or an imminent dead fork. The top divergence of the RSI indicator is obvious

The W% R indicator is near the O line, (the above indicators use 30 minutes and 60 minutes as important references, and the above situations that occur in 5 minutes and 15 minutes are selected for opening positions to take action).

C. Morphological correspondence: The K-line chart appears stagnant to form a longer upper shadow or a longer upper shadow doji. Hammer head and double hammer head, as well as pubic overcast, the 5-line rises sharply to gently move closer to the 10-line. After that, it is gradually deduced into the V-shaped top, M head, head and shoulder top, and arc top. The top line can continue to be shorted. The stop loss should be placed at the position of adding 5 points to the above head to prevent the exchange rate from reversing.

D. Establishing direction: the 123 rule of trend change, the three-day rule, and the gap rule

Summary: Strictly follow the above principles and refer to the SAR indicators appropriately, but pay attention to whether the short-term trend and the medium-term trend are consistent. If the direction is opposite, sell short must be cautious, especially when the exchange rate falls at the 60-minute 55-hour line of the average line. Pay close attention to the direction of the exchange rate. If it falls slightly or falls below, it is not far down, and there is a bottom pattern at this position. If the technical indicator is adjusted to a low level, stop short immediately. During the short-selling process, the setting of stop loss should be dynamically controlled. If the profit is large, the first stop loss level should be set at the cost, the second stop loss level should be set at a certain profit point; the third stop loss level should be set at the maximum stop profit of the target position.

Buy

A. The exchange rate forms 2B at the low level. When the position is established below the previous low and then rises back to the previous low, the stop loss is placed near the latest low plus 5 points. The principle of up the ante is that 2B effectively forms beyond the previous low, and the stop loss is also set near the new low.

B. Indicator Correspondence: 1. The MACD green column is gradually narrowing, and it is best to have a straight column divergence or a top divergence. 2. KDJ has a continuous bottom divergence near the new low, with signs of a golden fork, or has formed a golden fork. 3. RSI indicator is at the new low, with a clear bottom divergence. 4. W% R indicator has touched 100 many times. (The above indicator uses 30 minutes or 60 minutes as an important reference, and the open position chooses to take action at the low of 5 minutes or 15 minutes)

C. Morphological correspondence: The K-line chart appears single-pin bottoming or double-pin bottoming or a combination of Doji and Morningstar or a bottom of Yang and Yin, and the five-line changes from a steep decline to a gentle upward approach to the ten-line. Then it gradually deduces into a V-shaped bottom, a W bottom, a head tip bottom, an arc bottom, and a rising neck line. Buy when you open a position and up the ante. Stop loss should be placed near the new low of + 5 points above to prevent false bottoms from forming.

D. Trend change 123 rule: three-day rule, gap rule, pay special attention to the support role near the 55 line in 30 minutes and 60 minutes. If the medium and long-term trend, especially the daily trend, is upward, the bottom of the K line near the 55 line appears. When it attacks the 55 line or has broken the 55 line or the well line of the pattern, the technical indicator is at a medium and low level, and the opportunity should be bought and added. If the 55 line cannot be effectively supported and forms a falling relay pattern, it cannot open a position or up the ante. A short strategy should be implemented. Special care should be taken when the average line appears near the 55 line. The stop loss position should be controlled dynamically, but it cannot be adjusted automatically. The first stop loss level should be adjusted downward, and it can only be adjusted upward according to the trend. The first change is at the cost, the second change is at a certain profit, and the third stop loss is the target profit of the position.

Mental control

First, emotional interference must be excluded. Every day is a new beginning. You must forget the position and the cost of loss. Regardless of the huge losses borne by the position or the accumulated major profits, you must be honest with yourself. Deceiving yourself is the main reason for losing money. Focus on the following three aspects: 1. Whether the expected situation occurs 2. Do you want to buy or short in the face of the current price? 3. Is the probability of the original market development of the established position still the same?

Ignore the following aspects: 1. How much loss has been borne by the position at present. 2. How much profit has been accumulated by the position at present. 3. The cost of establishing the position. 4. Expect that the market may develop in a favorable direction.

Second, excellent traders will wait for the opportunity with the highest probability of winning and the lowest risk, that is, the opportunity with a risk/reward ratio of 1:3 or more. Patience is a necessary quality for an excellent trader.

Third, you can't trade reluctantly. You can't build a position when you don't have a chance or are in a bad mood. The key to the trading game is to consistently find winning opportunities. Open a position on a high chance of winning, not at a high risk and low yield point.

Fourth, constantly reflect on and reassess their mental performance. Continuously improve their investment theory and methods.

The initial loss is often the smallest, and the situation cannot be allowed to continue to deteriorate without taking any protective measures.

Six. Three points to note: 1. Each transaction must set the entry and exit target price, risk/reward "= 1:1 or more. 2. Use strong willpower. 3. Have someone supervise your transactions.

Seven, do not easily change the methods of success and the investment theory of profit, unless these methods and investment theories can be changed when the odds of success in actual combat are low.

The key to judging success or failure is to adhere strictly to investment theory and not to define success or failure based on profit and loss results.

Trading rules

Transact according to the plan and adhere to it strictly

Second, trade with the trend to determine the price of a trend reversal

Third, the stop-loss strategy is adopted, and the stop-loss order must be followed up after each transaction order is placed

Fourth, be skeptical and appear immediately when the odds of victory gradually decrease

Trading requires patience and cannot be forced to enter the market without obvious opportunities

Sixth, quickly recognize the compensation, so that the profitable position continues to develop

Seven.CBCXforeign exchangeDo not allow profitable positions to turn into losses

Buy in weakness and sell in strength

Nine, the loss can not be amortized, the loss position can not be up the ante

Don't take positions when prices change rapidly

Eleven, be careful to review your mistakes. Losing trades do not necessarily mean mistakes, and mistakes do not necessarily lead to losses

Transaction records must be kept for continuous reflection and summary

123 Criteria for Determining Trend Changes

The trend line must be broken, and the price must cross the drawn trend line

Second, the upward trend will no longer reach a new high or the downward trend will no longer reach a new low

III. Prices move up through previous short-term rebound highs in a downtrend or move down through previous short-term retracement lows in an uptrend