Overall, by conducting a 'double check', one can not only verify the effectiveness of one's trading strategy, but also examine some of the ideas that arise during the trading process. Moreover, by conducting a double check, one can verify the trading system they have designed.

In the process of're trading ', if traders find their trading strategy inappropriate, they will start analyzing which parts are applicable and which parts need improvement.

Therefore, during the resumption, trading masters will reflect on the trend, remove the dross and select the essence, so as to obtain more new ideas and strategies.

This also greatly increases the probability of creative thinking appearing to a certain extent.

So, how can we efficiently review our market and make the right trading decisions?

Preparation before review

1. Evaluate your trading performance. Review your trading history, evaluate where you did well, where you were at a loss, and the reasons for this situation.

2. Analyze every transaction you initiate. Have you followed your rules and trading settings, or have you acted emotionally? Other things you can ask yourself include: What do you think the current trend of holding positions will be? Is the transaction in line with market trends? Is the result due to skill or luck?

3. There is a complete trading plan. Reviewing the market does not mean regretting the historical trend or simply pursuing a possible new trend. The prerequisite for a resumption of trading should be that the trader has a complete trading plan, writing down goals, stop loss points, and potential entry points.

Precautions during the review process

During the process of trading, traders can summarize their behavior, compare it with their trading plan, and understand whether they have executed the trading plan well, whether their trading system has defects, and so on.

1. Position and fund management: For traders, position consolidation is very important. Traders must first manage their positions in order to successfully manage their funds and guide their future investments and trading. If a trader's position is very casual, and even repeatedly places orders for the same variety in a short period of time, it indicates that he is not a novice with good money or a "gambler" who has lost red eyes. This is not advisable.

2. Trend analysis: Scan the trends of all holdings and analyze their current status: What are the long-term, medium, and short-term trends? What level of trend or consolidation are you currently in? Are there any trading opportunities that are suitable for you? How to set possible entry points and profit locations.

3. Trading strategy: Do you need to adopt a favorable or unfavorable strategy for the current transaction you are initiating? Is it intraday short line or band? At what time and at what time does the entrance take place? If building a warehouse, what is the size of the warehouse? What is the target price point? What is the approximate pressure and support level after admission? Under what circumstances can one confirm one's own judgment? How to stop losses? Is there a possibility of reverse operation?

4. Review and Reflection: Has this opportunity ever existed in past historical trends? If so, how did it start and develop at that time? What is the trend of the product related to this opportunity variety?

5. Pre judgment measure: Is the trend of the currently held varieties normal? Can we increase the warehouse? Under what circumstances will the position be increased? Under what circumstances do you need to stop earning and exit? If the trend is abnormal, under what circumstances will it be eliminated?

6. Focus on Fundamentals: What are the major news events that follow major websites? What impact will these news events have on the market? What impact will it have on your trading plan?

7. Mindset management: Mindset is an important influencing factor that cannot be ignored in trading, and human weaknesses such as greed, fear, and arbitrariness can lead traders to failure. When conducting a review, interrogate yourself based on your usual main questions, such as whether you have strictly followed your trading plan, followed your designated rules, or acted recklessly and recklessly on unexpected matters.

Review your review frequently

The main significance of conducting a review is to help avoid making the same mistake and guide the next transaction. To truly play a role in future transactions, it is necessary to constantly reflect and review it.

During the review process, there are naturally many ideas, inspirations, and even creative things born. The significance of reviewing lies in doubling the value of our past records and reflections. In the process of personal review, regularly reviewing the events one has experienced is equivalent to constantly conducting a "sandbox simulation", gradually forming some thinking frameworks and behavioral habits. When making decisions, one becomes more systematic and comprehensive, and unconsciously avoids the detours and pitfalls they have gone through.

The use of foreign exchange trading technical indicators

In the foreign exchange trading market, technical analysis is one of the main analytical methods. The so-called technical analysis is the application of the simplest laws of supply and demand changes in the market, to find and explore a set of market analysis methods for analyzing market trends and predicting future market trends. When traders analyze the trend of the foreign exchange market from a technical perspective, they usually combine many technical indicators to have a clearer understanding of market trends. Today, the editor will introduce several common technical indicators to you.

ATR indicators

1. Definition and characteristics of ATR

ATR, also known as Average true range, means the average true range of fluctuations in the market, indicating the magnitude of market volatility. It can also provide hints on the current momentum of currency and be used to measure currency volatility.

The market develops in volatility, but the volatility of each period does not remain consistent. When a trend is established, the emotional response of investors in the market will become stronger, and the volatility will also increase. However, when the market is unclear or in a clear wait-and-see and waiting mood, the volatility of prices will become smaller, and the ATR indicator can directly reflect such fluctuations.

2. Calculation method of ATR

Fluctuation amplitude: The distance between the highest and lowest points on a single K-line chart.

Real fluctuation amplitude: refers to the maximum value of the following three fluctuation amplitudes.

① The distance between the highest and lowest points of the day

② The distance between the previous day's closing price and the highest price of the day

③ The distance between the closing price of the previous day and the lowest price of the day

When there is a gap in the K-line chart on that day, the actual fluctuation amplitude and the fluctuation amplitude of a single K-line are different.

The average of true volatility is the average of true volatility. In order for ATR to reflect recent volatility, short-term ATR (2-10 K-line graphs) can be used; In order for ATR to reflect 'long-term' volatility, 20 to 50 K-lines or more can be used.

3. Using ATR to Set Stop Loss

In the market, many people will adopt fixed point stops, however, fixed point stops are not accurate enough. The volatility between different currencies is different, and the volatility of the same currency in different periods is also different. If a fixed point stop is consistently used, it will have better results for certain currencies, and it will often be swept away for certain currencies. If different stop loss points are adopted for different currencies to solve the problem, it is difficult to detect the differences in volatility of the same currency at different periods in a timely manner, and it is also easy to lead to the occurrence of stop loss situations. By tracking and utilizing ATR indicators to set stop losses, such problems can be effectively avoided.

The use of ATR indicators to set stop losses is simple and easy to use. The most commonly used method is to first select a benchmark price, and then add a coefficient adjusted ATR. In overseas trading, the 10 day moving average is used as the benchmark, and half of the ATR is used as the stop loss amplitude. When using ATR to set a stop loss, if the market trend is obvious, then ATR can be used to move the stop loss to maximize profits.

Boll

The Bollinger band (or Bollinger channel) is a very practical technical indicator designed based on the principle of standard deviation in statistics. It is composed of three track lines: upper, middle, and lower. The upper and lower lines can be seen as pressure and support lines for prices, respectively. Between the two lines is a price average line. Generally, prices move in a strip interval composed of upper and lower tracks, and the position of the tracks is automatically adjusted with changes in prices. Bollinger bands are often used to measure market volatility, which tells us whether the market is quiet or turbulent. When th