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Recognize shock trend

Recognize shock trend

For prices, there are only three trends :

1. Price rise

2. Prices fall

3. Price shock, that is, the price has no obvious upward or downward trend.

In each case, we can buy and sell to obtain profit from the price difference.


Shock Trend

The performance of price shock trends :
The price continues to fluctuate up and down within a certain range. There is no obvious uptrend or downtrend, but forming a horizontal trend. Shock trend always comes between the uptrend and downtrend.

It is easy to understand by looking at the price trend chart:

Seeing that the price fluctuates up and down, we should sell at the high point 「A B C D 」 and buy at the low point 「a b c」 to make the profits from price difference.

In any period of shock trend, draw a horizontal line for the high price and low price respectively.


Observing the chart features of the shock trend, there are many trading opportunities:
1. Buy when the price drops to the low level trend line;

2. Sell when the price rises to the high level trend line;

The shock trend has the largest proportion of this three trends, so it is necessary to learn something about it.