"Homeopathic operation" is considered to be an unparalleled martial art that financial investment experts can master, and it is also the essence of Dow theory. In technical analysis, there are many tools to identify the reversal of the trend and confirm the trend. This trend follows the principle that "poverty leads to change, change leads to communication, and general rules last for a long time". When the market rises to a certain space, it will gradually change with the release of bullish power and the liquidation of profitable positions, and then change qualitatively to a certain extent. This process is "poverty will change". It takes a long time for the trend to change from the beginning to the end (according to Dow theory, it will last 1-3 years). When the trend has just changed, many people are still nostalgic for the past. Why is this happening? Because the long-term trend has caused people to have inertial thinking in their minds and always don't believe in the fact that the trend is reversed. As some important trend lines were broken and the market was really fully confirmed, they began to accept the facts slowly. These stages. "General principles for a long time" is like a stage when a country moves from chaos to great governance and maintains prosperity for a long time. This stage is what everyone yearns for. At this stage, many people will invest in the financial field, even grandparents will participate, and together with professionals, * * * make money and share the beauty of the trend, commonly known as "the stage where fools can make money." These stages paralyze people's minds, lose their sense of hardship, or become conceited. What's more, they think the world will be his, which is simply an idiotic dream and nonsense. At the same time, this stage has also laid a "curse" for "poor reform".
Now let's go back to the disk to see the evolution of a euro: (please refer to the analysis chart)
Since the early 1990s, we have seen a historical high of around 1.4500, and there has been a phenomenon of "poor change" at this price. After this "poor change" qualitative change process, some people still keep the habit of bullish trend market in previous years. As a retracement process, some people suddenly woke up until the trend line near 1.2000 resistance was broken. From "making sense" to "general principles for a long time" is a process of quantity accumulation, in which many people participate and constantly promote market trends. After the euro broke through 1.2000, the market began to establish a new downward trend, and this downward trend lasted for a very long time. By the year 2002, it had reached the stage of "poverty leads to change", and then the constant cycle of change leads to pass-the general rule lasts for a long time-poverty leads to change.
Judging from the current trend stage of the euro, it has completed the "poor will change" and now it has reached the primary stage of "change will pass". We spent a lot of time waiting for the confirmation process from "poor to change" to "change to pass". I hope to remind investors who are optimistic about the euro for a long time or continue to hold bullish ideas now. Judging from the trend chart of the euro, the euro is in the primary development stage from "changeable" to "general rule for a long time". This is a once-in-a-lifetime opportunity. If we don't do it this time, how many teenagers will it take to get another chance? I believe you can also see it from the analysis diagram drawn by the author.
From EUR/USD: Short-term orders can be established at 1.2640- 1.2660 today, and the short-term target is in the range of 1.2500- 1.2480. In the medium and long term, the author believes that the dollar has begun to turn to the market, but turning to the market does not mean that it has fallen to the bottom. I think there will be a callback when we reach the 1.2500- 1.2480 area, and the expected interval can reach around 300-350 points.