- First of all, we use a picture to judge why we bought the pressure level above.
After breaking through the pressure level, it will rise a little. This is common sense, but many people will leave the market after breaking through the pressure level (fund withdrawal). Everyone knows that the trend of fund retracement will definitely be affected. The simple understanding is that there will be a downward trend.
- Below is the support level
The support level is simpler. Let’s take a look at the name. It supports the price at which the price will not hit a new low in a short period of time. If the support level is broken, the downward trend will be exacerbated.
Simply put, if you are short and the price breaks below the support level, then you must be profitable.
On the contrary, you have to leave as soon as possible (the pressure position does not need to worry too much about a sharp increase).
- How to predict the market trend of M1 based on the recent market conditions?
- The left trend is obviously that the main force has withdrawn a part of its funds, and the withdrawal will not be exacerbated for the time being
- Middle section with indeterminate rise
The increase is uncertain, which means that the rising trading volume is someone who is preparing to buy the bottom.
The downward trend means that some people follow suit and the main force is still selling in small orders.
- The K-line chart on the right in the middle passed very smoothly (for 21 minutes)
green marked area
- New data on the right: The market is starting to pick up, because there is no news and various factors. The initial decline is just the main force for withdrawing funds
Now that people know about this, so many retail investors who watch it start to join in, then the large amount of funds joining the market will be affected. Simply put, if more funds join, then the market K-line chart will show an upward trend.
- Note that the market began to rise steadily after 13 minutes (judging from the side, retail investors joined in one after another within 13 minutes, affecting the market’s rise all the way, then this means that there are a lot of retail investors or a lot of funds)
Then there is a sudden and steady increase, which is a signal for people to watch, if there is less selling, then people will increase their funds to continue buying, at least it will break through the pressure level.
- If the K-line chart does not fall violently but frivolously when a small amount of money affects the market rise, then people will still maintain the previous rhythm to break through their pressure level
- The mentality of some retail investors will be very fragile. After the upward trend just now, retail investors know that someone must become the main force.
Retail investors are afraid of being abandoned by the main force again, so they will follow the trend of the main force. If there is another sharp drop, some retail investors will think that the main force is withdrawing funds, and will follow the trend and mistakenly think that the main force is selling. Retail investors will make the same decision to sell.
Note what I mentioned earlier, if retail investors sell off support levels, then there is bound to be a sharp downtrend.
- So we made a most stable plan
Our Ark Community has many members following us, and the more people there are, the more funds there will be.
Indirect understanding that we ourselves are also the main force
If we enter the market, it will affect the market to a certain extent.
- Notice here is when people are going to watch the amount sold. We joined, then the price is not trending down, people are seeing an up.
If we don’t enter now, there will be 2 downtrends or more.
- We saw hope when we joined the retail investors, and started to buy continuously after waiting for 1 minute.
- When retail investors do this, we win, because our order price is at 141.476 and we set the take profit price at 141.505 (this price is below the resistance level)
- The psychology of retail investors must want to break through the pressure level, so we patiently wait for the profit to come out. When we get the profit and leave, if no one immediately buys with funds equal to or higher than ours, the market will show a downward trend.
- Look, when the price fails to break through the pressure level in an instant after we leave, then there is a high probability that the market will start to trend downward.
- So far, there have been 2 phases:
- When we failed to break through the pressure level after we left, people thought that the main force was suppressing them, so some people started to leave. Combined with our departure, then this is a large amount of funds withdrawn, so the market will start to show a downward trend (among them, some retail investors also discovered the problem and sold following the trend, leading to a sharp downward trend in the market)
- At this stage, some people are reluctant to sell at this price, so they choose to continue to hold, then the market starts to stabilize, and they want to see it rise(Without people like us and big money joining, the market has remained at that price with only a slight increase). Some decisive person will decide to sell, then there will be another fall
After selling in front of some people, there are still some people who are unwilling to sell and choose to leave the market when they see that the market has no upward trend, which leads to a subsequent downward trend.
The Ark Community team reminds: the trading market is a battlefield without gunpowder. There are tactics on the battlefield and mentality in the trading market.
Successful people will use the public to obtain the most stable income for themselves and are not greedy. If you are greedy, the trading market will no longer be your source of income.
The mentality is very important. If your mentality fluctuates violently, we suggest you not to trade first and consider whether to trade after your emotions recover.