Characteristics of trends
1. The trend is persistent.
Once a trend is formed, if there is no fundamental and powerful external force, the price will continue to run along the original trend. Why does the trend continue? The fundamental reason is that it has a self-reinforcing function, and the trend will help itself. Moreover, the trend movement will produce a money-making effect, which will attract new funds to join the trend movement team, and the result is to further strengthen the trend. Until it is fundamentally hit by some external force, such external force includes changes in capital liquidity, changes in people's psychological expectations, changes in fundamentals, the outbreak of war, economic recession, etc.
2. The trend is stable.
Although there are many counter-movements and negative impacts, the real trend is never afraid of impact. Unless there is a change in absolute power, the trend can withstand any impact. The stability of the trend also contains the long-term nature of the trend. The basic trend will generally last for a long time, generally at least six months, and sometimes several years or even more than ten years. The long-term nature of time is an important manifestation of the stability of the trend. It is also this feature that allows us to boldly use the trend.
The trend is more likely to continue than to reverse. If it is bullish, it will be bullish. If it is bearish, it will be bearish. Even God cannot stop it. What is there to worry about?
In short, trends are not dry theories, nor are they words in academic books, but living magic weapons.
A person who truly understands trends can use trends to seek profits and avoid risks. Only those who truly understand trends can make big money in the market.
Before you truly understand the trend, all your actions are just fence-sitters.#荣耀时刻