The shock market is actually the pause of the trend. It corresponds to the trend market, that is, the so-called continuous pattern, relay pattern or consolidation market. According to the length of its adjustment time, it can be divided into: short-term shock, medium-term shock and long-term shocks. According to its shape classification, it can be divided into triangle, rectangle, wedge, flag, trumpet and diamond and other common finishing shapes.
In addition to the unilateral rise or fall of the gold market , there will also be local fluctuations, so how should gold trading deal with the volatile market? How to make an order when speculating in gold when it encounters a volatile market?
- Build warehouses in batches
In the volatile market, the best way to operate is to choose wet storage to enter the market in batches. Take the 10% standard position as an example, enter 5% of the previous conditional operation position, and choose to enter the market at the resistance support position for the remaining 5%. The advantage of building positions in batches is to lift the average price and get closer to the ideal position.
- Stop loss setting
The volatile market generally requires multiple trading days to organize the market, and the test of the resistance support position will also be tested many times. Of course, false breakthroughs are also very common, so the stop loss position should preferably overflow at the resistance support position. 2 This at least avoids the embarrassment of breaking the stop loss due to false breakthroughs, and can also prevent large losses without stop loss in the breakthrough market.
- Profit target
Take gold , which is often operated, for example, the volatile market generally fluctuates within 10 US dollars within a day. If the entry position is at the 2nd position, then basically a single order wins 4-5 US dollars in profit and can basically be out of the game.
- Resistance Support
The key to the volatile market is to grasp the position of resistance and support. As for how to find resistance and support, it is necessary to refer to the previous trend.
- Operating position
The volatile market will not operate strictly according to the resistance support you have found. In many cases, it is only a close position. Therefore, in terms of operation, it is best to open a position at 2 points above the support position and open a position at 2 points below the resistance position. . so as not to miss the market.
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