Detailed explanation of the internal wave section strategy in the transaction! The article is very long, but it is very practical! (Multi -diagram analysis)


I am a full -time full -time DAY FXTRADER that is profitable in daily fluctuations, mainly in accordance with the market structure (morphological, dynamics, market supply and demand and price behavior). Writing this answer is not to post a nipurative delivery order to show off, let alone write some nonsense that said nothing. I chose to do foreign exchange transactions because the fluctuations can be estimated, the risk is controllable, the transaction time is clear, and the mobility is better. On the other hand, compared to the medium and long lines, it can maintain the keenness of the market.


Author: I just wanted to mention the correlation between the US dollar index and currency, hundreds of words are enough. But the more you write, the more 6,000 words …

Here I briefly mention some of the internal band trading ideas of foreign exchange. The following described, it seems to be complex and diversified. In fact, it is just for you to open up thinking. You follow these things and slowly open up. My original intention.


For me, most of the technical analysis on the market has been exposed to. You can make money, but each has its own defects. If you make money, you will not say it, but you must know the defect, otherwise your winning percentage will definitely not be mentioned. You must know that transactions are subtraction, not adding additions. When practicing, the overall systematic evaluation only takes a few minutes to complete.


For example, this little story: Tourists find painters on the roadside painters. As a result, just 5 minutes on the chair, the painter drawn it. Visitors said: Your fee is too high. It is not worth the price in 5 minutes, but I will pay, because this is really good. The painter said: It is not five minutes, it is 20 years and 5 minutes.

I think that if you want to do well, you must make more mistakes and step on the pit. Secondly, we must start to be clear and clear about the market structure, identify the profit form, and then win from the “probability”. Traders who often use indicators or trend lines, lack the laws of price behavior. However, the price of this market has a strong rule in running. It is not convenient to put it in detail and put some pictures for everyone. I hope that everyone will have a new latitude cognition after reading.


Look at how many rules can be excavated in the same price fluctuations. In fact, this form of form is far more than that. That’s why I have always emphasized the probability of transaction and the key entry position (the highest quality price price)

Here’s a few more photos to update the answer, simply re -inventory.

Note: Too much, no example of one by one. For traders who have a certain foundation for the market structure, this analysis may never be seen, but you must know the gold content of these pictures, which is a priceless wealth for me.


The reason why I put this is because I don’t think how many people can learn, because you don’t know what it is. There is a saying in the market that when a strategy is using it, it will fail. But I think that even if all traders understand these basic models, it is impossible to change the price behavior of the market. why? In addition to the price model is random, it is because a large part of the transaction volume of this market comes from the quantitative transactions of the institution, and the number of artificial participation in the transaction only accounts for less than 30%. Since it is an algorithm, it must be logical and precise. But I believe it is just the tip of the iceberg traded by institutional algorithms.

This is a foreign exchange market. No, it is the entire secondary market. Futures, stocks, gold, crude oil, natural gas, cryptocurrency … Any quantitative foundation with K -line and liquidity markets. As long as the market structure does not undergo fundamental changes, these rules will continue to exist in chaos and random ways. The only difference is that with the evolution of market transaction strategies and the increase in liquidity such as survival of the fittest, high -frequency transactions, etc., some operating logic of the market will be changed, but the essence will not change -because the market is behind this market is people behind this market. It is the two -dimensional opposition to human and anti -human nature.

On the other hand, with the increase in high -frequency transaction volume, ultra -short -term transactions, such as 1 minute traders, obviously feel that the burrs of candles are getting more and more. Essence Of course, this has nothing to do with today’s content. But what you need to know is that the behavior of institutions such as Stophunting -hunting stop loss, false breakthroughs, etc. will be more frequent. The only thing that can be explained is to increase the transaction order as the transaction volume increases, and the logic of the price operation is that the transaction is not transaction order. And the stop loss (hanging order) must be played, this is the mission of price fluctuation! The so -called unproof order is: limited price hanging order, stop profit line, stop loss line …

brief introduction:

1. Compared with gold, crude oil, Bitcoin, and futures, foreign exchange is the smallest trading product.


Two words: stability.

And foreign exchange has one more US dollar index than other financial products, which is the currency correlation that I want to emphasize. Although gold is also related to EUR, CHF, CAD, and AUD, Ukusoil and CAD are related to the US dollar index on other non -beauty resonance effects. Not to mention the futures, at most it is only multi -breed linkage.


2. How to define the internal band? Take a downward trend as an example, the internal band is the highest price “near” that day, and stop profit at the lowest price “near”. If you do not catch a good position, you can only participate in the current trend, so it is not limited to the band. The only standard is to make a profit, or stop this variety transaction. The judgment of the direction is actually a probability event. Before coming out of the direction, which kind of probability is large and the risk is small, you can do what kind of transaction. In addition to some pictures above, you can briefly look at the fairy map below. I think it’s good to like me.


Figure 1. Through the US dollar index analysis

Figure 2: Through the transaction time

Figure 3: morphology class

Is it simple enough? No moving average, no indicators. But no matter what kind, it depends on the market structure. Of course I use MACD occasionally.

Figure 4: Indicators


August 7 GBP

Figure 5: supply and demand and price behavior


In fact, the transaction time period is a very important criterion I want to judge. Behind time is the transaction volume behind traders from all over the world. If the transaction volume is too small, that is, the market does not fluctuate, such as Japan’s time, or the second half of the US market, even if there is a good chance, it will not do it. My transaction is very clear: the daily band, focus on the pound, find and participate in London fluctuations. For the period of 14: 00-17: 00, the transaction signal will definitely appear. This greatly improves the efficiency of my transaction.

The transaction volume distribution map of each transaction period. You will find that the most important thing is the opening of 15 o’clock, which is London. Followed by the four golden periods of 20-23 in New York.

3. The setting of positions is set according to stop loss. The stop loss is the average variety fluctuations on the day-that day has fluctuated = even if it is wrong, the price of the price will be up at most. Then use the losses / potential to be stopped by the losses you can bear = the position that can be opened.

For example, the risk quota is 300, the average fluctuation of the pound is 1000pips, and the pound has fluctuated up 600pips on the same day, that is, the fluctuations of about 400pips left are not reached. If you think the price is a fake breakthrough at this time, you choose to short. Then your stop loss position is almost 300 US dollars/400pips≈0.75 hands. Risk adjustment by yourself. Among them, the average fluctuation of the pound is only the average number, and your opening can only be about ≤0.75.

So position management is important.

Note: If it is still floating after a period of time, this is a strategic mistake. For example, it is more important in DXY, but the price fell below the support. Then all non -US currency will definitely break through the resistance level. Then you must have the need to solve the need for non -beauty in the resistance. But because you enter the best price. So this important price will give you the opportunity to solve it. You just run.

4. The so -called solution is essentially changing supply and demand forces. It is a skill in the market to increase liquidity. What does that mean? I did more, quilt, and then the market came back to give me the opportunity to solve it, and then I became short. This itself increases the market’s transaction volume, and it will be sold, and the market will fluctuate sharply. So the opportunity to solve the set is basically only once, don’t be lucky. Smart traders will use it.

5. Specialty of a variety. I only do pounds and pounds. Because the fluctuation is moderate, the risk is controllable.


6. Trading within day does not mean frequent transactions. About 2 orders a day. Because trendy fluctuations within the day are generally 1-2 times. Two times generally have V -shaped reverse attributes.


7, why do you grasp the lowest and lowest price? Because the risk here is the lowest and easy to solve. More importantly, the risk -income ratio is the highest quality. Smart people know how to use small risks, and get far greater than risks. This is the significance and value of speculative investment. Those who know the supply and demand of the market should understand that when the smallest price, it should be established. Create shorts where the minimum demand is. And this corresponds to the lowest price and highest price of the day. This also emphasizes the importance of the selection for the selection. Some positions would rather do not do it, and don’t disgusting yourself.

8. I can tell you 100%. Regardless of any transaction cycle, market fluctuations are extremely regular and measured. This law is being used by the market for quantitative transactions. The most basic is the form of ABCD, and the shock breaks through 1: 1. They constitute the underlying logic of this market price behavior.

As far as the current market price behavior is concerned, it is developed from Lightning. The rules of derived are more advanced and more attractive.

As a trader, no matter what transaction cycle, what you want to do is to find more advanced laws through this lightning and box, and then identify profit probability, increase your winning rate, and position time.

8, more important concept. Regardless of whether it is within the day or shorter, you have to determine that if you trade at the inflection point, you have to understand the next fluctuations, how the probability is the previous wave of callbacks, or the expansion of the previous wave. If it is an extension, it is the beginning of the trend. If it is a wave of callbacks, after the adjustment, it is the beginning of the trend. The real part of the trader to improve the technology is actually this thing. How much profit do your judgment bring you? How many risks will it bring? We must weigh the positions of the position with the smallest trading risk, and want to retreat, and when the position is temporarily correct, think about the possibility of extension 1, 2, and 3 that may get out of the price. Because the positions held at present may be just a trend.


(Actually, as long as you know this profit model, you can make money steadily. Another meaning is to open your eyes in obvious places, where you are easily cheated.)

9, I don’t want to talk about the “” of technical indicators, and momentum transactions. There is no problem with the indicator itself. The problem is that many people do not really understand the price behavior. I can briefly mention that “back” can be omitted …


All traders using technical indicators are actually dynamic traders. Most people use indicators because “it is easy to use”. At the rise, the indicators at this time have long told you that the price is undergoing, and there is no motivation. But many times, despite the appearance, even if the price turns around, it is still not an inflection point here. You find that the price has fallen for a short time, and then it breaks a new high -this is just a large batch of large funds that follow a certain price form. After quantifying the market, the natural rebound caused by the short -term lack of opponent disks in the market. Not long after, the trend will continue, and a new lightning will be taken out.


The previous rebound was used to drive away the unsteady bulls and attract the empty entry. Because someone touched the top through technical indicators, and more than one. Therefore, a large number of stop loss orders are accumulated above, so the price will be sold for these orders … This is the script that has been staged every day in the trend market.

The truth is: there is only one real high point, and there is only one real low. In the trend, the countless shocks and callbacks are only part of the trend. Many people are lost here …

The reason why you believe in the indicator is because it happens that a certain indicator tells you: the price is running back. You happen to catch the end of a large -level form, which is the price of multi -header. The so -called survivor deviation. It’s like carrying a single back, so you think you can resist the truth in the future. All probability.

The only way to use the “indicator to carry out” to increase its profitability and position holding time is: in the upward trend, do super -selling / bottom back, and in the decline trend, do superb / top back. It must be me in the end. This is because I traded in the trend. We can all make money, but you make a callback, and what I earn is the extension. Of course, there are many other usage indicators, not only to memorize, for example, I mentioned MACD usage above.


10. You have to specialize in a technical analysis, but you also need to understand the defects of other technical analysis. For example, the second one broke the trend line to short, but it was short on the support position. Do more support, right, right? Many novices will be contradictory: “I want to follow my own trading plan”, resolutely liquidate and resolutely implement it. But obviously, you can’t develop a valid plan for a valid plan before you don’t understand this market logic. Because your profit probability deviates too much from a stable profit curve.


What you have to do is reduce frequent transactions and recognize your ability. Learn more about the logic of the basic operation of the market. The direction of studying the indicators all day is wrong, and the time is wasteful. If you only draw lines and ignore the market structure, then you will continue to lose money forever. As a picture of “Brief Explanation Figure 2”. In this answer, at least 4 pictures are the same profit model. Which one is not a nightmare that breaks through the trader? Stop loss, stuck, and then burst.


Doing frequent losses is because your attention only pays attention to the current price behavior of the current breakthrough, but it ignores the support resistance structure under the time of multiple time cycle frameworks and the long and short market forces. Of course, there are other technical analysis, such as moving average, harmonic, supply and demand transactions, market error correction behaviors, price behavior, waves, Veopov quantity and price, entanglement theory, index back, and even in the form of ABCDs. Transformed. You have to understand the defects of these technical analysis to prevent the use of the market. But the premise is that you have to have a channel to know.


11. Many people say that their mentality is good and self -disciplined. I do not deny. I think the mentality and implementation are the key factor in stability. But if you do not have the eyes of the market correctly, your self -discipline and mentality does not make any sense -that is just self -deceiving.


12, I post this post to develop transaction thinking for some traders. Some bars, please take out your strength.

The following is a simple idea, which does not have a transaction strategy, but it can still provide profit probability for your transaction.


Note: The trend of the US dollar index is just adding a insurance to your judgment, which can optimize your entry and risk income ratio to tell you whether a price is worth the value. It doesn’t mean that there is no US dollar index, there is no way to deal. not like this. You can better understand the pictures I painted on it. That is a profitable capital -effective analysis of the market.

1. Let’s take a look at the price trend chart of the US dollar index (as of the week of August 6, 2020 400:00)


This is a trend chart with a US dollar index of 1h. In each box, there are 24 candles, which represent the price fluctuation range of the day in the 1H transaction cycle.

2. We add daily fluctuation points:

We found that the daily fluctuation of the US dollar index in the last 6 days is


62 17 hours/74 12H/98 10H/67 14H/61 7h/70 15h (daily closing price)


Therefore, we can know that the recent fluctuations in the US dollar index spend about 12 hours per day. Then this 12h is the average positioning time.


1, 720pips are small dots, 1pisp = 1 dollars


2. This can be calculated with the ATR indicator. Through the adjustment of the value, confirm in the 1D diagram.


3. Let’s add the time range of trend launch

20: 00, 17:00, 14:00, 16:00, 21:00, 14:00

You will find that several small rules:

1. Most of the time for the trend of the day is in the European market, and then the first half of the US disk. And the Asian disk is more a kind of pavement of the market, with many seductiveness, seductiveness, and shock. Occasionally one or two days belongs to the large unilateral, and the opening is the highest point of the day, and the lowest point.


2. The beginning of the trend is generally the price limit of the day, or close to the price limit.

Note: The so -called price limit is that for the volatility of the day, there are only two limit prices: the highest price, and the lowest price. If there is a short trend within the day, the price limit is the highest price that day.

3. The development of trend takes a certain time.

4. The fluctuation value of the trend is infinitely similar to the calculation above, about 720pips daily.


5, …

4. Why is it the US dollar index?

Because of the US dollar index, the trend of non -US trend. And non -US resonance. And you can use the index to determine the strength of the currency and find a transaction opportunity. The green line below is the US dollar index.

The higher the USDAUD and USDCADs, the higher the index, which represents the weakest AUD and CADs at this time. The USDCHF is the lowest from DXY and represents the strongest CHF. Therefore, we know the weakest Audchf at this moment.

Of course, there are many situations of backward, not for example. Everyone goes to find a comparison. For example, the US dollar index rose, GBPUSD also skyrocketed, and GBPJPY must have plummeted.


It seems to be a bit of the topic.

In Figure 1, I have clearly told you: All currencies are going to run with the US dollar index. Then, you only need to know the trend of the US dollar index, (where is the strong support, where is the strong resistance, and where can it be reversed, is the non -US resonance? Or the strength cannot keep up with the fluctuation of the index?) Non -US currency’s internal band trading opportunities.

Look at another example, very typical

5. The price of the US dollar index is the most effective indicator of the direct currency of the foreign exchange market


1. The US dollar index has its own daily average volatility. As long as the fluctuations are not running, there must be fluctuations to run. If you have no position at this time, you are struggling to close your position, which can give you the direction and positioning time. Of course, the same is true for his currency. Take the pound, for example, the shock day is 700pips, normally at 900-1100, and it is a strong fluctuation after 1100. Even if the GBP runs the average fluctuation of the day, at this time you find that the DXY trend is very strong, then you can continue to hold your non -beauty position or reduce positioning.

2. The US dollar index reaches support resistance. Non -US must also support resistance. The US dollar index rebounds, and non -US must rebound. If non -beauty has no movement at this moment, or shocks, or even running down, this cross disk must have a big fluctuation.

3. If you have caught the price limit of the British pound according to the trend of the US dollar index, the price has been gliding for a distance. So I ask you, how do you pull your stop loss line? How to pull the profit line?


The answer is: combined with GBPUSD’s daily fluctuations to set the stop loss range, it has been mentioned earlier. Push protection after profit. Because if your entry position is the price limit, the price cannot rise again. Because there is no such cheap price ~ Stop Ying, it is very simple. Putting the stop profit line on the average fluctuation value of this variety day, such as GBPUSD’s 700-1100pips, and then why should you do? In other words, you can stop the damage line. But there must be a profit line. But you must know where your stop loss is.

6 About stop loss

The stop loss line and stop loss are two concepts.

The “stop loss line” is equivalent to you throwing a list for the market. When there are many orders at a certain price, then this hanging order must be sold. That is, it will definitely be stopped. Because the price of the price is unprecedented orders. The stop loss line is a kind of unproof order. Therefore, everyone often encounters, MLGB, as soon as it stops loss, the price goes back, that is.

“Stop loss” is a strategic deployment error. For example, heavy warehouses, chasing up and killing, transaction -dense areas entering the venue, wrong direction … You know wrong, this behavior you take the initiative is called stop loss.


7, the last point

What is the core of making money?


First of all, you must be determined to become a professional trader and build the thinking logic of Pro Trader. Why do you make money? Professional is not to say how much you know and how much fundamentals you know about foreign exchange merchants, but to have realistic basic skills for the price, the market structure, and perfect trading thinking. Under the correct cognition, you can make the right choice. You know, you ca n’t make money, you always make mistakes. In fact, you are not stupid, but this method is not enough! It is because of many methods in the market, which leads to losses of most people. This has been said before! The reason why profitable people are profitable is because they have tried all the methods on the market and knew the loopholes of these methods, so they were no longer easily deceived -because he could identify the trap and use the trap to capture the prey -some One day he changed from the food in the hunter to a hunter.


So I think about it: support resistance, reasonable risk control, positioning time, recovery, continuity, specificity, stability! The only long line in this market is to lock the risk and let the account survive.

Support resistance -cognition of market structure

Reasonable risk control -control of the capital position

Holding time -respecting your choice, self -discipline, and pattern

Return to enter -trading skills

Sustainability -maintaining sensitivity to the market


Dedication -the loyalty to the strategy, the variety, and the choice of self -choice

Stability -the excellence of the avenue of the trading system

Many contents are not added because there are too many knowledge points. Different transactions will derive different problems. Any small problem expanded to say that it is a lot of new precautions. I don’t know what to say. Ask if you have any questions. I hope that everyone can learn it, and in the future, they can analyze more comprehensive price behavior.

The above content does not constitute investment advice, for learning and exchanges! For more trading knowledge, please pay attention to Huihu app