First of all, we exclude fundamentals and information. Trend trading does not need to analyze fundamentals and information. Trend trading strategy assumes that all information appears in the price and only needs to pay attention to the price trend. Basic information is of great significance only when choosing foreign exchange in trend trading, which is used to choose foreign exchange with good growth, good health and strong popularity.
We have determined the research price, and then we must admit that the price has a trend. Next, we need to know that there are three trends in the market. According to the definition of Dow theory, we know what is the horizontal trend of upward trend and downward trend.
After understanding the trend, trend trading requires five technologies:
First, the skills of identifying trends. Determine the trend in the first 20% of the trend. In this way, when most people have not determined the new trend, we guarantee that we have entered the market.
Second, measure the service life of the trend. You can't enter the market at the end of the trend.