In London gold investing, we don’t encounter trends very often. Generally, the investment strategy of London gold investors is to follow the trend, but according to statistics, when the dragon lantern is in a trend state in the market, it only takes 20% to 30% of the time. Most of the time, the theoretical boarding trend is in a very volatile market. How do investors conduct transactions during a consolidating market? Let’s discuss this issue first.
In the consolidation pattern, what we have to wait for is for the market to continuously test or break through the high and low points of the consolidation range, but in the end the era is over. The industry means that the trend of London gold continues to fluctuate up and down in the development zone, which also produces high selling and low selling. suck educational opportunities.
But there is a problem that we often encounter in investment. This is the frequent false breakthroughs in the consolidation market. The breakthrough means that London Gold may form a trend, which is the starting point of great profits, so investors have a lot of interest in breakthroughs. great interest. Once a central coder with a breakthrough is discovered, investors may consider entering the market immediately for test trading. Helpless to support many breakthroughs in the consolidation range, they are all false breakthroughs. For example, if there is an upward breakthrough in London, investors will go long at the top of the range. As a result, the trend will eventually reverse back to the consolidation range, so investors will easily suffer losses.
When trading in a range in London, in addition to selling high and buying low, we can indeed alternate between breakouts, but the key is to wait. Don't enter the market immediately when the London trading range breaks through. You should wait until the retest is confirmed, and wait until the price breaks away from the previous level before trading. Maybe it's a little late, but the signal is clearer.