​Market Trend Catcher: Mastering the Breakthrough Skills of Price Behavior

Market Trend Catcher: Mastering Price Behavior Breakthrough Skills

In foreign exchange trading, “chasing the rise and selling the fall” is a strategy based on the assumption of trend continuity. The core of this strategy is to identify and follow the continuous rise or fall of prices in order to capture the continuation of the trend.

Real price breakthroughs often occur in markets where funds continue to drive. This driving force is a key factor in the breakthrough in price behavior. Therefore, the price behavior breakthrough strategy requires a deep understanding of the meaning of the naked K-line. Here are a few key points:

1. Market consistency and large entity K-line:

When the market reaches an agreement and there is no obvious support or resistance, the K-line usually manifests itself as a large entity, which indicates that market participants have a consensus on the direction of the price.

1. The price fluctuation rules of large entity K-lines:

This K-line pattern shows that the market has formed consistent expectations before the price fluctuates.

1. Resistance and amplitude changes:

When resistance is encountered, the K-line amplitude usually decreases. If the amplitude increases, this may indicate an imminent change in the market.

1. The amplitude performance of breaking through resistance:

When breaking through resistance, increasing amplitude is the norm, and if the amplitude decreases, it may be an abnormal phenomenon.

1. The relationship between driving force and resistance:

The strengthening of the forward push and the weakening of the reverse resistance is a sign of the healthy market; if the reverse push increases, it may be a signal that the market is about to reverse.

In the analysis, we pay special attention to the K-line with the largest amplitude (K-line 1), which usually exceeds the amplitude of all other K-lines, providing us with a starting point for analysis.

If the large-volatility K-line is consistent, it means that the market trend should continue. If this K-line is quickly reversed, it may be a signal that the market is about to change, similar to a sudden stop of a car that just started, indicating that there may be a obstacle.

The reversal of K-line 1 indicates that the market has encountered resistance. This is an objective situation in the market and needs to be identified and analyzed by traders.

When subsequent K-lines (K-lines 2, 3) approaches this resistance area, the amplitude will usually decrease. If the amplitude increases, it may indicate that new funds are added, providing traders with potential trading opportunities.

The key to effective breakthrough:

Identify key support/pressure: Effective breakthrough strategies require traders to be able to identify the truly critical support or pressure levels in the market.

Fund consistency:When breaking through key support or pressure, the consistency of market funds is an important factor in confirming the effectiveness of the breakthrough.

Mastering price behavior breakthrough strategies can help traders capture the turning points of market trends more accurately and achieve following the trend. By deeply analyzing the K-line pattern and market capital flows, traders can also help them improve the accuracy and efficiency of trading decisions.