Detailed explanation of foreign exchange trading system
In foreign exchange trading, the importance of a trading system is beyond doubt. If you want to go further in this industry, building your own trading system is definitely something you must do. If you are a foreign exchange novice, then in this article you can learn in detail what a trading system is. If you create a teaching and research system, if you are a foreign exchange veteran, you can also use this article to consolidate your knowledge, maybe it will be useful in the training of newcomers later.

Overview of Trading System Theory
The trading system can be divided into three main blocks
A: Understand the industry's (game rules)
B: Determine market trends and develop (trading strategies) or trading plans
C: (transaction execution) stage, this stage is purely execution without adding any additional subjective and objective factors
The following details the above three main content
First, the understanding of the rules of the game:
(Market awareness)
1. Margin market, foreign foreign exchange and gold have no limit on the rise and fall, and trade 24 hours a day.
2. Margin trading allows you to buy up and buy down at the same price.
3. Margin trading is divided into different types of leverage from 1:10 to 1:1000.
4. Margin trading, allowing hedging transactions, and not allowing hedging transactions.
5. Margin trading, because leverage is magnified, risks are magnified, and some markets are optimizing leverage to serve the economy.
6. Margin trading, liquidation, some are the remaining purchase position margin after liquidation, and some are the remaining 20% of the purchase position margin.
7. Margin trading is a gray market in China.
8. Internationally, China's market economy status is gradually being recognized.
9. Several major platforms for margin trading, regulated by the United States and the United Kingdom respectively, are safe and reliable. Non-regulated traders have unreliable security.
(Awareness of market trends)
10. The margin market is traded 24 hours a day, with Asian, European, and US markets respectively. Under normal circumstances, from 12:00 am Beijing time to 8:00 Beijing time, it belongs to the afternoon and morning stages of the US and Asian markets. During this period, the market trend is more corrected. From 8:00 to 15:00 Beijing time, it belongs to the Asian market time. During this period, the data from China, Japan, and Australia have a relatively large impact on the market. The trend during the period, in most cases, the volatility is smaller than after the opening of the European market. From 15:00 Beijing time to 20:00 Beijing time is the European market. During this period, European data are released within this time. The range of market trends will be amplified by the influence of news, which will produce a wave of trend prices. From 20:00 Beijing time to 24:00 Beijing time, it is the superposition of the European afternoon plate and the US plate, and it is also the golden time for margin trading. Trends and inflection points will continue to appear during this period.
So in summary: the market volatility is the largest from 15:00 pm to 24:00 pm Beijing time, and a large wave of market will occur. The remaining time belongs to the market correction period, and positions can be adjusted to avoid risks.
11. The seven mainstream direct currencies have an intraday volatility of about 1%. Switching to the point, it is normally 70 points as a wave of effective market in Europe and the United States. The fluctuation in Europe and the United States, under normal circumstances, is a 50-point wave of market, and the trend cannot be reversed immediately after the day. A 70-point wave of market, followed by a wave of reversal is unlikely, will produce a correction of about 30 points. If the 120-point market arrives, it is a strong trend on the day, and the future trend will basically trade sideways to the next day. The European market will continue to delay the trend of this wave of market.
12. Margin trading, no matter what cycle operation, under the leadership of sustainable profits, there are about 2-3 trading opportunities within the week. Such opportunities will generate more than 100 effective profits. Opportunities are not provided every day.
13. Moving average trading system, for the classification of the market: sideways finishing market, oscillating upward market, oscillating downward market, upward channel market, downward channel market. The criteria for distinction are: whether the moving average is effectively bowing or looking up. Regarding what is the standard of effectively bowing or looking up, there is no constant standard for the time being, only a simple judgment standard: select the 30-minute period, the market amplitude ruler at 300 points. Then through the previous historical trend, observe the average amplitude and remember. (Because what you need most to look down is the recent historical trend in front, you cannot give the standard); hourly chart, fix the ruler at 400 points to look at the market. 4-hour chart, fix the ruler at 700 points to judge. The above 300 400 700 is a general index. Can be used for reference. Why do this, the reason is: to avoid looking at the plate, the amplitude of the moving average to their own subjective visual impact. This classification, as the first choice for placing an order signal.
14. Regarding the k-combination pattern, for the classification of the market: up, up after the correction, up after the correction and then rise, up after the sideways, up after the sideways continue to rise,,, and so on similar expressions. This market classification, as a condition for placing an order signal, is not much, and will be carefully described in the later trading plan formulation.
15. Regarding the classification of k for the market: Individuals condense k into four words of rape and injection. Similar market classifications are expressed as follows: stabilizing after rising, stabilizing after falling, reversing after falling, reversing after rising, and so on.
16. The true meaning of all trading indicators is the same.
17. Market sentiment is mainly classified by risk: risk appetite, risk appetite, risk sentiment, risk volatility, and risk aversion.
18. Rape injections are all personal condensations of k. highlight. There are many descriptions on the market, such as what cross star, hanging line, etc., which are not of reference significance. Rape and injections are only suitable for after a wave of market.
(Position awareness)
19. Margin trading, institutions, funds, and retail investors cannot use heavy positions as a criterion for their sustainable profitability.
20. Retail trading, there is no concept of adding positions in the context of the moving average trading system. One single and one.
21. The matching position of the trading cycle, assuming that the constant position is 2, you can choose the ratio of the position cycle:, long 1 short 1 match, long 1 medium 1 match, medium 1 short 1 match, medium 2 match, short 2 match, only long 1, only medium 1, only short 1.
22. Position ratio matching, do not measure as a percentage, use 1000 0.1 as the maximum position measurement standard.
(60 moving average recognition)
23.60 moving average trading system, dividing the trading period into long-term, medium-term, and short-term. Long-term, 4-hour graph, after the mt4 platform scales k to a minimum, it zooms in twice again as a Kanban standard. Medium-term, using the hour chart as a Kanban cycle, the standard is the same as long-term. Short-term: 30 minutes as a Kanban cycle, the standard is the same as long-term.
24. In moving average trading, different cycles provide different non-contradictory signals.
25. In moving average trading, the stop losses corresponding to different cycles are: 50 70 120 points. The corresponding take profits are: 50 70 200 points or more. Gold, silver and oil stock indices are not within this description range.
26. Average trading system, signal superposition or signal conflict. For example: a buy signal appears in 30 minutes and a sell signal appears in the hourly chart. In this case, you can trade on different accounts at the same time, you can trade on the same account at the same time, or you can choose one of the two to trade. The final result can be taken profit at the same time. Therefore, it is a normal phenomenon.
(Human nature understanding)
27. The most effective energy of a person is about 2 hours a day. Other times, the energy will not be effectively concentrated. For example: a class of 35 minutes, consider that the child can concentrate for about 20 minutes, and the rest of the time belongs to the energy cannot be effectively concentrated. This is the definition of a person.
28. When energy is overdrawn, people's latest judgments or conclusions can directly overturn the correct judgments made when they are focused. Meaning: people can use wrong judgments to convince themselves of previous correct judgments. This is also a normal phenomenon. It is because of the uncertainty that nature becomes rich and colorful.
29. The daily tracking is controlled within 4 hours. It is not easy to exceed.
30. Mental quantification standard: the development of things is controllable, and its own investment is controllableforeign exchange marketUpper: That is: the market is controllable, and the position is controllable. If the two are controllable, then the mentality can naturally be balanced.
31. Choose more than 50% of pending orders as much as possible.
32. A correct understanding of oneself is a necessary condition for sustainable profitability. A clear understanding of personal emotions and desires is required. Remember, similar to: impatience, grumbling, etc., this is not a weakness, only a personality trait.
33. Don't change your personality to adapt to the market.
34. For personal personality characteristics in the transaction, if they are at a disadvantage, choose the way to resolve or transfer, and integrate this characteristic into the transaction.
(Trend awareness)
35. What is a trend? In the 30-minute cycle chart, the price is more than 70 points away from the moving average, which is one of the necessary conditions for the generation of a trend. The hourly chart is 100 points. The 4-hour chart is 150 points. (These points are approximate amplitude, not constant expression, to describe reaching this magnitude.) Required condition 2: The subsequent wave of corrections cannot exceed half. Required condition 3: The subsequent wave of corrections cannot touch the moving average. To meet these three conditions, the moving average has begun to choose a direction, rising or falling. This is the standard for describing the trend in the moving average trading system.
36. In moving average trading, what is homeopathy? Homeopathy refers to the direction in which the current market continues or the future market trend is expected. For example: choose a pullback market after a rise as a profit target, then there will be a pullback market in the future, and you have operated it smoothly. This is a pullback market. If the plan to open a position is a new wave of rising market in the future after a pullback, and it is operated smoothly, it is a wave of rising market in the future. Homeopathy is just a narrow term. In trading, this term is just a tooth sacrifice noun after a meal. Talk and laugh.
37. Don't expect trends to emerge in the future immediately.
38. The stages of the entire trading process are divided into: patiently waiting for the opportunity stage, buying or selling stage, holding the signal to provide the market stage, holding the signal critical point stage, position squaring stage, position squaring to continue the pending order stage, patiently waiting for the opportunity stage, repeated in these stages.
39. Don't get caught up in trends.Trend, oscillation, is the eternal cycle. The beginning of the oscillation is the end of the trend. The end of the trend is the beginning of the oscillation. There is an entire oscillation interval as an overlap between the upper or lower track of the oscillation range and the generation of the trend. Meaning, it is necessary to objectively understand the oscillation and recognize the trend. Trading profits can be generated with a tendency, but not as a fixed lock object.
40. There is no market that goes up and down forever.
(Basic information understanding)
41. The US dollar is the world's settlement currency, a savings currency, and a safe-haven asset. US bonds are the safest asset in the world at this stage. More than gold, because gold is still denominated in dollars first.
42. The world's currency is a combination of the dollar, the euro, the yuan, the pound, and the yen.
43. World capital, the largest pool of funds is sovereign government bonds. Specifically: government bonds, bulk futures, stocks, etc.
44. There are no market makers in the foreign exchange market, only the main behavior. The bottom line of each central bank is the benchmark for the main behavior.
45. The statements made by the speakers of various countries are first from a political standpoint. Secondly, the economic standpoint.
46. In any period, there is a focus that dominates the market, and when there is no focus, it can also be defined as: the focus period. The focus dominates the trend above the month, and the news surface dominates the trend around the day.
47. What is a major risk event: central bank interest rate decisions, unemployment rates, GDP data, market intervention, ad hoc meetings to resolve issues. Such are major risk events that dominate market movements for more than 24 hours.
48. The three major economies of the sovereign state, the United States, Europe, and China, neither party wants the other party to surpass itself. There is an eternal relationship of checks and balances. Under the leadership of equilibrium power, there is no life-and-death struggle.
49. Capital is ubiquitous. American capital is everywhere, so is Europe, and so are other countries. Therefore, capital is related to the country.
50. Trading, in terms of fundamentals and news, involves the expected process and is unimportant to the outcome.
51. Inflation accompanies the economy. Appropriate economic growth is necessarily accompanied by appropriate inflation. If the two are not balanced, there will be demands for adjustment. A stagnant economy and rising inflation are stagflation. A slightly growing economy and a rapidly growing inflation are inflation. Both stagflation and inflation are bad for the economy. Countries are trying to find a balance.
52. Currency wars among sovereigns are eternal. They exist all the time.
53. The US debt ceiling will be imposed in the next few years, because the expansion of debt must be accompanied by the growth of the real economy, and the inflow of real funds will support the expansion of debt. Otherwise, the status quo of no money to buy will not be sustainable for a long time, even if another crisis pushes up US debt.
54. It is very difficult to describe behavior through language, especially in art.
55. The relationship between the short-term stock market and the foreign exchange market. The stock market is a barometer of the economy. In anticipation of an economic downturn, the stock market falls, and funds flow into the bond market, raising the exchange rate corresponding to the corresponding bond market. Under normal circumstances, the bond market is the preferred safe-haven asset. Under normal circumstances, they trade off and off. It needs to be reminded that you need to take advantage of this abnormality to judge the market.
56. Trading signals are sustainable. Don't change yourself during trading because of (news, experts, communication).
57. At present, the world's major rating agencies: S & P, Moody's, Fitch. It is precisely because of the accuracy of their judgments on the economic situation that their judgments have a great impact on the market. Don't believe in conspiracies.
58. In moving average trading, fundamentals and news are not used as order signals. They are only used as some tentative fault-tolerant trading signals in trading, and the stop-loss and take-profit required are different from those provided by the moving average. In moving average trading systems, such signals are not outlined.
(Stop loss and take profit understanding)
59. In trading, there must be take profit and stop loss. It is a summary of the past or the beginning of the future.
60. In trading, a stop loss is required, and the stop loss is suspended in the moving average trading system in another market direction.
61. In trading, take-profit is required, which corresponds to the expected market direction return.
62. For all the trading signals we summarize, the first screening criterion is whether they are sustainable.
63. It is emphasized that stop loss is the generation of another direction, holding is also holding one direction or more than one direction, and position squaring is also the generation of a new direction.
64. It is necessary to have a solid memory of the market trends of the past few weeks in mind.
65. The generation of trading signals, there are references, summaries, trials and errors. The generation of any trading signal: needs to be registered through image matching instructions, and requires a large number of historical and future trends to be compared and explained. Form a folder called "xx signals"
66. Having a large number of transaction records is a necessary condition for the formation of a trading system.
67. With a large number of transaction records, a large amount of investment is required. You can choose the best funds you can afford to achieve this process.
68. The replay, which is the closing price of the complex k, is static. If the signal is obtained in this way, it needs to be in the signal and do the same. Otherwise, two results will occur.
69. In the average trading record for a week, there is no more than one profit order of more than 70 points, and sustainable profits cannot be achieved.
(Understanding the laws of nature)
70. Don't impose harsh trading discipline on yourself.
71. Stepping into sustainable and stable profitability is a long-term process, and most people are not talented. It takes more than three years to hone.
72. For the process of recognizing new things in transactions, we can adhere to the idea that only with an open mind can we accept things, and only with absolute consideration can we think far.
73. Don't judge things by their merits.
74. What you buy and sell is the range, not the point.
75. Basic qualities of professional trading: no trading gaps are allowed in the market trend.
76. the execution of signals is accompanied by the abandonment of new opportunities for trial and error.
77. Abandoning a trading signal is considered as not following the signal.
The above is the understanding of the rules of the game. Summary of personal experience.
2. The following describes the trading plan - the second block of the trading system
A trading plan or strategy is a judgment based on the rules of the game and then forms an effective strategy.
The formulation of a strategy is based on a judgment based on market trends.
The formulation of a strategy requires an optimal solution in an unknown trend.
It is often mentioned how the current price operates, and what stands out is how the trading plan is formulated.
The way to express it is: a trading plan made for yourself every day. It can be written on a notebook or recorded on a computer. Plans need to be made every day. If you really can't see an opportunity, then the content of the day's plan will not be written.
What are the trading signals?
moving average trading system
1. The moving average is flat,It is a volatile market. High or low. Stop loss in the event of volatility up or down. Take profit within the take profit range.
Pending orders are one of the necessary conditions for volatile trading. If the price has not reached the pending order position, but there is a stabilizing signal, please switch to the k trading mode to enter the market. In volatile markets, under normal circumstances, the upper and lower ranges of the price away from the moving average are basically the same. Pending orders and take profit refer to this standard for execution.
2. Oscillation upwards,Break through the sideways finishing range, and the moving average begins to rise. In the moving average trading system, the operation for the upside of the oscillation is to buy from the bottom of the sideways oscillation and hold it to the upward direction of the oscillation. If there is no position at the bottom of the sideways oscillation range, give up this round of the market. Wait for the pullback to test the pending order near the moving average to buy. The upward oscillation is a trend that constantly touches the moving average, the highs continue to rise, and the lows continue to rise. During this period, the overall center of gravity does not move up very much.
A, when buy at the bottom of the sideways range and the moving average rises, this order is held.
B, when the sideways range is not open, the moving average is raised, and the pullback test is bought near the moving average. The starting point of the previous round of market stops is about the middle of the previous sideways consolidation.
C, the upswing is a regular trend. With the production of the correction market, the high point of the first wave of the market can be used as the starting point to draw a oscillating uplink channel along the parallel direction of the moving average. Then hang short on the top of the channel. Take profit channel rail or moving average position.
D, volatile upward market, correction market, can be more than half, so pending orders cannot be used as a reference.
E, the upswing is a channel, as long as the future trend breaks through this track, then enter:
If it breaks through upwards, it will enter the oscillatory upward movement of the center of gravity;
If it breaks through upwards, it will enter the upward channel market.
If the downward breakthrough, then enter the center of gravity downward oscillation upward;
If it breaks down, it will enter a sideways volatile trend.
For the future direction after the breakthrough and the current market, there is a fault-tolerant judgment range.
It's a matter of center of gravity shifting.
If the channel is short, it needs to be 80% of the stop loss range of the corresponding period. If this is stopped, there is no direction, which is a test of trial and error in the direction of the market.
If you hold multiple orders during the upper channel break, continue to hold. Take Profit amplifies to 80% of the stop loss range of the corresponding period.
If it breaks down and holds a pullback order, continue to hold. Take Profit amplifies to 80% of the stop loss range for the corresponding period.
If you break through downward and hold a short order, you need 80% of the stop loss range of the corresponding period. If this is stopped, there is no direction, which is a test of trial and error in the direction of the market.
F, volatile upward, often the next wave of market does not necessarily reach the upper track of the channel
Observe the sloop indicator to see if there is a phenomenon of strength exhaustion, that is, the sloop value has not reached the previous high point, and the price has broken through the previous high point.
In this case, you can manually enter the empty order. Corresponding cycle stop loss.
G: When the price breaks through the moving average downward, and then turns back to the moving average, the direction of the market is confirmed as the center of gravity moves downward and oscillates upward. (Is there a 7-k price that completely breaks away from the moving average in the opposite direction?)
H: When the price breaks through the upper rail upwards, then pulls back to test the moving average to maintain the judgment of the upward market direction of the shock. However, the probability of entering the sideways direction in the future is great.
I: Since it is a shock up, as the name suggests, it is a shock. Take Profit must be set. Even if it continues to extend after taking profit, it is a new direction. The direction of this behavior has ended.
3. Shake down,Break through the sideways finishing range, and the moving average starts to bow. For the operation of oscillating downward, sell from the top of the sideways oscillation and hold to the downward direction of the oscillation. If there is no position at the top of the sideways oscillation range, give up this round of market. Wait for a pullback to test the pending order near the moving average and sell. Volatile downward is a trend in which the moving average is constantly touched, the lows are constantly pulled lower, and the highs are constantly pulled lower. During this period, the overall center of gravity shifts downward by a larger margin than the upside of the oscillation.
A, when the top of the sideways range sells and the moving average falls, this order is held.
B, when the sideways range is not open, the moving average is lowered, and the pullback is sold near the test moving average, and the starting point of the previous round of market stops is about the middle of the previous sideways consolidation.
C, volatile downward market, rebound market, can be more than half, so pending orders cannot be used as a reference.
D, the downward spiral is a channel, as long as the future trend breaks through this track, then enter:
If it breaks through downward, it will enter the oscillatory downward movement of the center of gravity;
If the downward break, then enter the downward channel market;
If it breaks through upwards, it will enter the center of gravity to move upwards and oscillate downwards;
If you break through upwards, you will enter a sideways volatile trend.
For the future direction after the breakthrough and the current market, there is a fault-tolerant judgment range.
It's a matter of center of gravity shifting.
If you go long on the lower track of the channel, you need to stop 80% of the range of the corresponding period. If this is stopped, there is no direction, which is a test of trial and error in the direction of the market.
If you hold multiple orders during the channel breakout, continue to hold. Take Profit amplifies to 80% of the stop loss range of the corresponding period.
If you break through upwards and hold a rebound order, continue to hold. Take Profit amplifies to 80% of the stop loss range of the corresponding period.
If you break through upwards and hold multiple orders, you need 80% of the stop loss range of the corresponding period. If this is stopped, there is no direction, which is a test of trial and error in the direction of the market.
E, volatile downward, often the next wave of market does not necessarily reach the upper track of the channel
Observe the sloop indicator to see if there is a phenomenon of strength exhaustion, which is the sloop value. If the price does not reach the previous low, it will break through the previous low.
In this case, you can manually enter multiple orders. Corresponding cycle stop loss.
F: When the price breaks through the moving average upwards, and then turns back to the moving average, the direction of the market is confirmed as the center of gravity moves downwards and oscillates upwards. (Is there a 7 k price that completely breaks away from the moving average in the opposite direction?)
G: When the price breaks through the lower rail downwards, then pulls back to test the moving average to maintain the judgment of the volatile downward market direction. However, the probability of entering the sideways direction in the future is great.
H: Since it is a shock downward, as the name suggests, it is a shock. Take Profit must be set. Even if it continues to extend after taking profit, it is a new direction. The direction of this behavior has ended.
4. Upstream channel,The moving average is rising, and the strength is very strong, it is basically impossible to have a pullback to digest the previous wave of rising prices. The upward channel is evolved from the upside of the shock. Or the long-term sideways shock rises sharply and is directly opened.
The origin of the upstream channel:
A: The sideways oscillation range has risen sharply, directly exceeding the price range required for the oscillation to rise. This: directly enter the upward channel from the sideways.
B: The upward trend is volatile, and the future wave of rising market will break through the upper track of the channel. Generate a channel.
After the upstream channel is opened, the pullback is very limited, and it basically runs sideways, and then continues to rise.
So: After the upstream channel is opened, hold the multiple order firmly. Callback the empty order to give up the operation. Only hold long.
After opening the required amplitude of the uplink channel, in the future: you can hang more than half of the position or the current price, and enter the market. After the uplink channel is opened, the future market will basically still fluctuate the uplink market. Therefore, any multi-order at any point is the holding uplink channel or the upward direction of the oscillation. For the stop loss in this direction: If the uplink channel pulls back more than half, it can be defined as entering the original oscillation uplink market. If you enter the market at half of the position and go long, a, the pullback is more than half, and the long deal is made, either set the stop loss at the quarter position, or directly take the stop loss setting of the oscillation u
Detailed overview of the entire process:
Upstream channel required amplitude has reached, bulls hold, moving stop loss in this wave of market half position, take profit next wave of market to reach the previous wave of open channel market amplitude of 60% as the initial target of take profit, or into the upswing direction, every track position squaring.
The required amplitude of the uplink channel has been reached, the pullback is more than half, and the long position squaring. The bears hang short at the latest high point, with a fixed stop loss in the cycle, and a fixed take profit in the cycle. This market belongs to the small fluctuation market in the channel and needs a stop loss and take profit setting.
Reminder: In the volatile downward trend or the downward channel trend, it is difficult to subsequently produce the upward channel market. Only the sideways finishing market or the volatile upward market can be generated.
5. Downlink channel,The moving average is bowing, and the strength is very strong, it is basically impossible to have a pullback to digest the previous wave of falling market. The downward channel is evolved from a shock downward, or a long-term sideways shock falls sharply, and it is directly opened.
The origin of the downlink channel:
A: The sideways oscillation range, which fell sharply, directly exceeding the price range required for the oscillation downwards. This: directly enter the downside channel from the sideways.
B: The downward trend is volatile, and the future wave of downward market will break through the lower track of the channel. Generate a channel.
After the downlink channel is opened, the rebound is very limited, and it basically runs sideways, and then continues to decline.
So: After the downlink channel is opened, the empty order is firmly held. Rebound multiple orders give up the operation. Only hold short.
After opening the required amplitude of the downlink channel, in the future: you can hang short at more than half of the position or enter the market at the current price. After the downlink channel is opened, the future market will basically continue the downlink channel or oscillate downward trend. Therefore, the empty order at any point is the downlink channel held or the oscillation downward direction. For the stop loss in this direction: If the downlink channel rebounds more than half, it can be defined as entering the original oscillation downward market or the new oscillation downward market. If you enter the market at half the position and go short, a, rebound more than half and make a short deal. Either set the stop loss at the quarter position, or stop the loss at the moving average position, or directly take the stop loss setting of the oscillation downward. (The stop loss at the moving average position basically overlaps with the position of the oscillation downward)
Detailed overview of the entire process:
The required amplitude of the downward channel has been reached, bears hold, moving stop loss is placed in half of this wave of market, take profit next wave of market reaches 60% of the previous wave of open channel market as the initial target of take profit, or enter the downward direction of the shock, every lower rail position squaring. Long stop loss leaves the market.
The required amplitude of the downward channel has been reached, the rebound is more than half, and the short position squaring. The bulls are hanging long at the latest low point, with a fixed stop loss in the cycle and a fixed take profit in the cycle. This market belongs to the small fluctuation market in the channel and needs a stop loss and take profit setting.
Reminder: In the volatile upward trend, you can directly break through the sideways finishing range and directly open the downside channel.
The above is the theoretical scheme of the moving average trading system.
Regarding the point and amplitude, there is a detailed description.
Some trading signals provided by the K-pattern combination:
What is a k-pattern? It is a combination of many k-patterns, which has certain guiding significance for the future market.
Personal experience summary is: temporarily remember the following one.
After a rise, the sideways trade will rise without falling, and after a fall, the sideways trade will fall without rising, referring to the short-term cycle.
Some trading signals provided by the K-pattern
Personal summary k, condensed into four words, rape injection.
The day-to-day trading template is the most detailed analysis of k (the day-to-day trading template is only used as a reference for short-to-medium-term trading).
Rape and injections, because the opening time of each platform varies, so it basically means the same thing.
This is the first meaning of rape injections.
MT4 platform, there are 4-hour cycles, 1d cycles, etc. On this basis, we can pinch parts of k together during any cycle to filter out unnecessary shocks, which is the second meaning of rape injections.
Rape injections are a sign of a wave of market stabilization. At the same time, it also hints at a future wave of market:
Volatile market, the bottom or top of this signal, guide the next wave of market.
Volatile up or down the market, this signal, suggesting a stabilizing signal, for the direction of the future market guidance, only to provide a callback or rebound market.
Channel market, the same oscillation up or down explanation.
Reminder: The range of rape and injections must exceed 20 points, the longer the more effective. Needles must have more than 20 points to guide a wave of market and stabilize with the original market. Rape must exceed 20 points, even larger than the range of the needle, because it has a physical structure.
Reminder: If the future market engulfs the needle after the rape injection signal, then the future market will continue, and the amplitude will be about twice that of the needle (for example, the needle is 22 points, and the future high and low point is ≥ 44 points).
The above describes all the combinations of trading signals required for the process of formulating a trading strategy.
Based on these signals, develop a trading strategy. Complete the second block of the entire trading system.
The third block of the trading system is the execution of the trading strategy or trading plan.
This needs no explanation. Just execute. Executing a trading strategy is a basic quality of a professional trader.
Once we have developed a trading strategy, the rest of us is like a tool.
Hang up the corresponding pending order, set the corresponding stop loss and take profit. Things to be solved in minutes.
Finally, I wish you a happy transaction. Trading is an art, and the art of language expression always has some shortcomings!
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Disclaimer: The content of this article does not represent the views of the Institute of Foreign Exchange. The content is for reference only and does not constitute investment advice. Investors operate accordingly at their own risk.
