In gold investment , traders often encounter short traps and cause unnecessary losses. In fact, these traps are not unavoidable. From various aspects, we can still find several signals to avoid short traps. How to identify short traps in gold speculation ?
First look at what is the short trap? The short trap is a market situation in which mainstream funds in the market are vigorously shorting, and the gold price in the disk shows a significantly weak pattern, which induces investors to conclude that the market will continue to fall sharply and sell in panic.
The judgment of the short trap is mainly based on comprehensive analysis and judgment from the aspects of news, capital, macro fundamentals, technical analysis and market sentiment:
- Analysis of the news
The main funds often use the advantages of publicity to create an atmosphere of short selling. Therefore, when investors encounter continuous bad market conditions, they should be extra careful, because it is under the heavy bombardment of various bad news that mainstream funds can It is very convenient to open a warehouse.
Second, from the analysis of transaction volume
The characteristic of the short trap in terms of trading volume is that with the continuous decline of the price of gold , the volume energy has always been in an irregular shrinking, and sometimes there will even be infinite empty drops or infinite plunges on the disk, and the intraday trading of individual stocks is also very inactive. Create an atmosphere for investors that the yin or down trend is far away. Precisely in this pessimistic atmosphere, the main force can often easily build positions on dips, thus forming a bear trap.
- Analysis from the Macroscopic Fundamentals
It is necessary to understand the policy factors and macro fundamental factors that fundamentally affect the strength of the broader market, and analyze whether there are substantive negative factors . At this time, it is easier to form a short trap.
Fourth, from the technical form analysis
Under the bear trap, the transaction situation of the market is not optimistic, and there will be infinite empty drops or infinite plummets. The transaction on the disk is not optimistic, creating a very pessimistic atmosphere for investors to keep selling. The K-line chart is characterized by several consecutive long Yinxian plummeting, breaking through various support levels, triggering a chain reaction of panic in the market. In terms of technical indicators, the bear trap will lead to serious divergence characteristics on technical indicators, including multiple cycles of synchronous divergence of various indicators.
Five, from the market sentiment analysis
Under the bear trap, the trend of the market will continue to fall, which will form a heavy trap in the market, and the popularity will continue to be exhausted in the trap. However, it is often at a moment when market sentiment is extremely sluggish, which just shows that the price of gold is not far from the real bottom. The main market forces that create bear traps will also have to stop because they are approaching the bottom line of the market.