Category: Money tips Release Date: 2006-04-21
With the right trading concept, traders can trade the right along a path forward. In the futures market, many people are eager to have developed a model in order to achieve profit objectives, but in essence in such transactions and does not exist. Leo Melamed in its "technical analysis in futures trading means" one-ri said, the most popular misconception is that in the transaction process there is a secret formula.
The futures market is a "move" state of the battlefield, if traders take an old, rigid formula, applied to the dynamic conditions in the futures market, imagine how such a transaction does not a failure? If the traders from the conceptual understanding of the futures market is a dynamic market, it would not use a rigid formula to deal with a dynamic futures market prices. Therefore, the right ideas, methods, infinite.
Exchange ideas and trading cycle
I look back more than ten years of futures trading experience, I found that either do or Zuo Gupiao futures, people tend to unconsciously fall into two cycle: First, the market has virtually the cycle of emotional control, one was encompassed by the Technical analysis of the blurred circle. In fact, the futures are trading concept of the cycle of two areas.
To determine the futures market price changes, First, the basic analysis, firstly, technology analysis. But people in the use of these two basic analytical methods, it is easy to misunderstand. For example, investors use fundamental analysis method, market conditions, they can put on the supply situation in the analysis of the criteria for determining a price change. But the problem is that when the futures price had yet to emerge a clear directional Change, those bullish and bearish forecasters, can come up with some basic information for themselves, "justify", then the number of the validity of such an analysis does ? Because one of them who can not see the "demand" on the variables, such as the relatively higher commodity production this year may need to expand, then commodity prices will decrease? Reduced commodity production this year, but demand tends to shrink, rising commodity prices can do? Therefore, the demand factor of uncertainty is to create market sentiment, "Vortex", so many traders locked in the "Vortex" and difficult to have a correct direction.
So the use of technical analysis of the law? A typical head and shoulders, double top or double bottom patterns such as by technology analysts keep in mind, but open the technical analysis charts to see, there are several standard head and shoulders, double top or double bottom does? Pitiful. Daoshi head and shoulders, double top or double bottom of the deformed shape a lot. Moving average line in technical analysis where what role? In where its advantages? Moving average line in a long cycle and short cycle of different species should be how to adjust the parameters inside? KD values, MACD, RSI and other indicators of whether such technology is used to do it? If you do not recognize the concept of the moving average line has the advantage of tracking the trend, KD values, MACD, RSI and other technical indicators are oscillating indicators such areas, and can not be used as a tool to track trends in the affirmative, then how are we going to deal by those who use? Such and such, how can it not a technical analysis method where it caught in a quagmire?
The correct methods of transactions, the transaction from the correct idea, the right trading ideas from a correct understanding of the market.
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