Category: Money tips Release Date: 2005-12-17
Current prices have been moving in the direction of profit after exercise, but in the expected profit prior to completion of movement, or below the bottom of a local before the operation of the market situation has given some danger signals, it would be necessary to actively take the initiative to put an end to the whole transaction to lock in profits. Can be seen, with protective stop-loss obviously different, follow-up of stop-loss is designed for short-term trading profits may sometimes end in a medium or even long-term market trend at the top, especially in the escape of an extraordinary campaign, to follow up the advantages of stop-loss is even more prominent, due not only to ensure that the higher returns, but also saves valuable time and increasing market opportunities.
"Machines can not be located, not in the set." Despite the tricky transformation of yin and yang can be detected, two different mechanisms also have rules to follow, but the stop is not in any case always set, even when very delicate, in actual combat may not be able to smooth implementation, such as the achieve our goals the more common transient and continuous immeasurable Change bits stopping time, and this indeed is the time to follow up themselves to the full stop!
First, target-bit follow-up stop-loss
Price patterns occurred, the reasonable ratio between risk and reward can be expected is usually the basic set, and is expected in the opposite direction, you can use a protective stop-loss control risk, but to achieve the desired goal Zexu ensure that the benefits stop using follow-up.
The trend channel, the period of price-line and returned through channels and ended at the channel, or near the channel line when turning, they usually become a trading opportunity; period of prices in the more critical resistance / support level easily repeated, that in the last local bottom / top or key ratios such as 0. 318,0. 5, etc. to change the direction of the time, when the timing for the implementation of follow-up stop; form an important measure of increases in their magnification in the vicinity, such as price up or down in the near Space 1 times to 2 times the time, but also note that the intersection form an important trend line or a different point of intersection of time and price in the prophetic.
Second, speed up the run-time of follow-up stop-loss
Current price range to shape up or break through the channel and to accelerate the run-time, follow-up of stop-loss may be located in the form of a high level of two times, three times or the second, third Road extension parallel lines in the vicinity, but as a general rule, speed run Issue price will result in short-term moving average, such as 5 days or 2 weeks of the deviation from the average high rate (eg 15% or so), the line than the trend line usually signals a much earlier, as long as income the first day / week closing price stop-loss below 3% can be implemented, that is, at this time do not have to wait until close to the longer moving averages take action to escape movement can pay attention to time-sharing (eg, 60 minutes) situation.
3, significantly heavy volume during the follow-up stop-loss
The formation of abnormal trading volume upside without a breakthrough, the cancellation of the original protective stop-loss, under the closing price of approximately 2.5% at a follow-up of stop-loss; channel suddenly put massive breakthrough before a local level points, and innovative value of the former is undoubtedly a kind of warning and threats, especially where there are gaps or single-day reversal to be more reliable if it continues to move forward without a big bang, you can close or below the 2.5% Division, as the stop-loss, until another outlet or at the top of the signal occurs.
The key is to set up follow-up stop running rhythm of the changes in use of the market, its price should be rising over time and can not move down, following the withdrawal of the covering high while in the opposite direction. In other words, time is everything, they would rather sacrifice some potential profit, nor the risks involved in order or waiting for the arrival. To lead a better life in the risk market, we must give up chances, despite the broader market basically determines the operational status and distribution of the use of funds, but it set the stop loss is almost no impact.
