Principle:? Position connection after the end of the trading cycle. ?
Usage:? Generally combined with other tools, such as K-line and volume?
First understand the relationship between position and volume.
1. When new buyers and sellers open positions at the same price, positions increase.
2. If one of the buyers and sellers is the original trader, the position will remain unchanged.
3. If both buyers and sellers are original traders, and both positions are closed, the position will be reduced.
Bilateral opening is the case of 1. Long position closing means that the price of a contract is expected to rise, you buy the contract, and then after a period of time, you think it will not rise again, and then you close the position to make a profit. On the contrary, if the market goes down instead of up, you will lose money. Short positions have the opposite meaning. If the contract price is expected to fall, sell the contract. If the price falls, close the existing short position to make a profit. If the price rises, close the position and stop the loss. Changing fingers is the second case mentioned above. After trading, the trading position that has not affected the position change is positive, that is to say, there are more cases of 1, that is, more investors enter the market and their positions are negative, that is, the third case is mostly negative. What everyone is bearish on is that all positions in the market have been closed, and the positions are zero, that is, the investors who are changing hands or entering the market at present are similar to those who have already left.