In foreign exchange transactions, most people buy low and sell high. Buying low and selling high is the essence of the market cycle. With the formation of market trends, it will not fluctuate in a straight line. On the contrary, the market sometimes forms price adjustment contrary to the established trend. The trader's goal is to seize the low point formed by price adjustment when the price rises, and then buy at a discount when the price falls. When the price falls, the market will form high and low positions. The price formed a high level before, and the low level represented a short-term reversal trend. There are many reasons for this high and low point, including profit-taking activities, portfolio rebalancing activities, and "herd effect" and so on On the contrary, traders who trade in a downward trend try to grasp the top of price adjustment and sell financial instruments at higher prices. If the market continues to fall, they have higher profit potential. When the market is in a downward trend, it will form a low point and a high point, and each successive low point will exceed the previous low point. The low position is a reverse trend. So buying high and selling low means the opposite.