The recent market has begun to converge, and the previous fluctuations seem to have disappeared in the recent week. I saw that the US dollar index has fluctuated within the range of 95.5 to 97 in the past month. If it is a trend-type strategy and the stop loss setting is small, then this period is very difficult, because there will be stop losses back and forth, and there are also many false breakthroughs. Doing trends and bands will inevitably experience the process of shock. This time is to test whether the strategy can help us reduce the loss of shock and seize the opportunity of the trend.
It often happens when the market starts to fluctuate and stop losses back and forth, causing traders to lose confidence, so they deviate from their own strategies in the follow-up market and rush to return the capital, and ultimately miss the opportunity to seize the trend.
Then in turn, such a market shock strategy will have better returns. Each type of strategy will have suitable and unsuitable market conditions. It cannot be said that all the market conditions can be captured by one strategy. We only need to grasp ourselves. Opportunities that can be seized by the strategy.
For swing and trend traders, the current shock is a time to wait for an opportunity. Before the strategy does not give an entry signal, wait patiently until the market reaches the entry conditions of the strategy, then continue to operate, don't rush into the market .
Let's take a look at gold again. The price of gold has come to the vicinity of last Friday's position again, still fluctuating around 1800. After the correction of the first three days this week, the price has been raised again yesterday and today. The current gold direction is still on the high side, but before there is no effective upward breakthrough, the upper space has not been opened. Whether it can break through and form a trend still needs to be Continue to pay attention to the upper resistance level of 1814.07 and the previous highs of 1815.34. If it can be effectively broken through in the later period, then the upper space will be opened, and we can be bolder to do more, but the current upper resistance is still relatively clear, can this wave of bulls be able to An effective breakthrough also needs to wait for the test of key positions.
Although I personally like to be short, I can't be a dead short, and I still need to adjust when I change my thinking and change direction. Of course, there are also some bears who go back to defend the resistance level above. Even if the resistance level near 1815 will not be effectively broken through at a small cost, it is also possible for traders who are short in the line to take a stop loss and give it a try.
No matter whether you are long or short, as long as you have your own basis, you can try it, but in the key position of winning and losing, it is unrealistic to want to take the profit of the long and seize the opportunity of the short. If you can do this If so, then the transaction will not lose money. What we can do is to clarify the direction in advance, wait for opportunities and signals, and then execute decisively.