Thermometer of the Market, Keep A Proper Distance from the Market

Thermometer of the market, keep a proper distance from the market, so as not to be brought into the market mood

If we need precise operation, we can use a specific range to distinguish the trend movement and natural retreat, and then filter the noise of the market to confirm the real trend direction of the market.

Independent thinking, relying on crutches will never lead us to be independent

Things easy to get are also easy to be taken away. For example, I personally observe that a wave of price rising usually has four different prices (usually based on the historical market trend, divide the bottom price of the current round of market to the expected target price into four equal parts, about 40%), to observe the position of the current market and determine the corresponding trading strategy.

Livermore divides stock trends into six categories. We can diagnose what kind of stock we hold.

1. Secondary rebound: the obvious rebound after a slump

2. Natural rebound: the natural rebound after a slump

3. Upward trend: the real upward trend

4. Downward trend: the real downward trend needs to be avoided

5. Natural callback: normal adjustment

6. Secondary callback: more drastic adjustment

Mutual confirmation of different stocks can also judge the general trend

For example, most stocks have no way to go down. Standing on the stock annual line is a sign that the market is going well. Support and resistance, formed by the previous round of market low and high and other intensive trading, can be added to assistance, and effective breakthrough is often accompanied by fundamental changes.

The first premise of trend market is scarcity, and the second premise is the sustainability of scarcity

The essence of market game is to obtain scarce resources with limited power. Sometimes you will find that the market will repeat in a certain figure, but not completely consistent with the previous market trend. A successful investor will often have his own sense of the market. For market sentiment, market consensus will have its own unique analysis. In the market index, MACD and William index are the better reference.