The so-called repeated ups and downs means that the price hovers in a narrow area, falls back when approaching the upper limit, and then rises again when it hits the lower limit, shuttles back and forth, and develops laterally. From a graphic point of view, it is quite similar to an accordion box, so it is also called “box-shaped trend”.
The reason for the repeated ups and downs is that there is no obvious bullish or bearish news in the market, and the market has lost a clear basis for one-way development. Whether it is buyers or sellers, they basically make long-term investments and only short-term speculation. I go, no one can take Shangfeng.
Many traders are accustomed to the unilateral market market, go straight to the end, and encounter repeated ups and downs in the market.
The guiding tactic for buying and selling in the repeated ups and downs is to go short. Because the distance between the upper and lower limits is not large, and once the upper limit is reached, it will turn around and go down, and once the lower limit is touched, it will turn back and rise. Profit opportunities are fleeting.
The specific countermeasures are: after judging that it is a repeated up and down market, buy a long position when it is close to the lower limit, close the position and sell it when it reaches the upper limit, and do a backhand short position. If it falls to the lower limit again, it closes the position again, and reverses to make a long position.
Such a tactic emphasizes mobility and flexibility. As soon as the upper limit or lower limit is reached, you must turn immediately, otherwise the bamboo basket will be completely empty. Therefore, you can place a set order, and after entering the market, close the position order, and place a new order that reverses immediately.
It must be pointed out here that the repeated up and down market is a temporary state, and an upward breakout or a downward breakout will occur sooner or later. Therefore, you should also pay attention to setting a limit stop loss when taking a short-term trade. After buying, surrender if it falls below the lower limit; after short selling, if it crosses the upper limit, it will accept compensation.