How to perform Margin Replenishment after being trapped (Trading Skills 100 Lectures / Article 9)
(Yangtze River Suggestion: Like, Share, and Collect) What should you do if the price doesn't rise immediately after buying as you hoped? Some people like to do Margin Replenishment, but the more they replenish, the more they get trapped. So when should you replenish? What should you pay attention to when doing Margin Replenishment? 1. The price is above the 5-day moving average, and the 5-day moving average is above the 10-day moving average. (1)If trapped does not exceed 3 points, Margin Replenishment may not be necessary. If it bounces back without breaking the 5-day line, it will rise again, providing an opportunity to escape the trap or make a profit. ( If it exceeds more than 3 points, you can do Margin Replenishment when it retraces to the 5-day moving average without breaking below it, reducing the cost to close to the 5-day line, which increases the probability of getting out of the trapped position and making a profit. 2. The price is between the 5-day and 10-day moving averages, with the 5-day moving average above the 10-day moving average. ) The price breaks below the 5-day line, and there was no stop loss at the first moment. If you are still optimistic about the future market, you can replenish your margin on the pullback to the 10-day line, but do not breach the 10-day line when doing so to reduce the cost below the 5-day line. If there is a rebound that does not break through the 5-day line, sell promptly. If the rebound breaks through the 5-day line, hold your position and wait for the rise. (2) if it falls below the 10-day line, reduce the position or stop loss in time, if you continue to be optimistic and have the patience to do medium and long-term holdings, you can make up the position in batches after more than 5-10 points away from the 10-day line. Reduce the cost to close to the 10-day line, wait for the reversal of the 10-day line, if the reversal does not break through the 10-day line, sell the position of the margin cover first. 3. The price is below the 5-day and 10-day moving averages, and the 5-day moving average has crossed or is about to cross the 10-day moving average. (1), if the 5-day line is dead and the 10-day line is crossed, then when it falls to the 30-day line, it has not been effectively broken for 3 consecutive days, and you can make up the position near the lifeline to reduce the cost below the 10-day line. If the reversal breaks through the 10-day line and the 5-day line golden cross, you can continue to hold; If the rebound does not break through the 10-day line and falls back in the face of resistance, it is necessary to reduce positions in time. On the 4.5-day line, the dead cross occurs with the 10-day line, causing the currency price to plummet sharply, breaking below the 30-day life line with increased volume. ( You can avoid waiting for 3 days for confirmation. For short positions, decisively stop loss; even if you are optimistic, you should first reduce your position to avoid the risk of a significant drop with heavy positions. If the volume increases again and quickly stands above the 30-day life line, showing a significant bullish line, you can enter without waiting for 3 days of confirmation, as the rebound breaks through the 30-day life line. ) ( )
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How to perform Margin Replenishment after being trapped (Trading Skills 100 Lectures / Article 9)
(Yangtze River Suggestion: Like, Share, and Collect)
What should you do if the price doesn't rise immediately after buying as you hoped? Some people like to do Margin Replenishment, but the more they replenish, the more they get trapped. So when should you replenish? What should you pay attention to when doing Margin Replenishment?
1. The price is above the 5-day moving average, and the 5-day moving average is above the 10-day moving average.
(1)If trapped does not exceed 3 points, Margin Replenishment may not be necessary. If it bounces back without breaking the 5-day line, it will rise again, providing an opportunity to escape the trap or make a profit.
( If it exceeds more than 3 points, you can do Margin Replenishment when it retraces to the 5-day moving average without breaking below it, reducing the cost to close to the 5-day line, which increases the probability of getting out of the trapped position and making a profit.
2. The price is between the 5-day and 10-day moving averages, with the 5-day moving average above the 10-day moving average.
) The price breaks below the 5-day line, and there was no stop loss at the first moment. If you are still optimistic about the future market, you can replenish your margin on the pullback to the 10-day line, but do not breach the 10-day line when doing so to reduce the cost below the 5-day line. If there is a rebound that does not break through the 5-day line, sell promptly. If the rebound breaks through the 5-day line, hold your position and wait for the rise.
(2) if it falls below the 10-day line, reduce the position or stop loss in time, if you continue to be optimistic and have the patience to do medium and long-term holdings, you can make up the position in batches after more than 5-10 points away from the 10-day line. Reduce the cost to close to the 10-day line, wait for the reversal of the 10-day line, if the reversal does not break through the 10-day line, sell the position of the margin cover first.
3. The price is below the 5-day and 10-day moving averages, and the 5-day moving average has crossed or is about to cross the 10-day moving average.
(1), if the 5-day line is dead and the 10-day line is crossed, then when it falls to the 30-day line, it has not been effectively broken for 3 consecutive days, and you can make up the position near the lifeline to reduce the cost below the 10-day line. If the reversal breaks through the 10-day line and the 5-day line golden cross, you can continue to hold; If the rebound does not break through the 10-day line and falls back in the face of resistance, it is necessary to reduce positions in time.
On the 4.5-day line, the dead cross occurs with the 10-day line, causing the currency price to plummet sharply, breaking below the 30-day life line with increased volume.
( You can avoid waiting for 3 days for confirmation. For short positions, decisively stop loss; even if you are optimistic, you should first reduce your position to avoid the risk of a significant drop with heavy positions. If the volume increases again and quickly stands above the 30-day life line, showing a significant bullish line, you can enter without waiting for 3 days of confirmation, as the rebound breaks through the 30-day life line. ) ( )