Replay similar situations in the past

一名菜狗trader · 2023-04-13T18:05:39.000Z

Figure 1 shows a similar market situation that occurred in 2020. The white line is somewhat similar to our current 25200 area. After breaking through the white line, it stayed above it for nearly a month, and then fell back to the original breakthrough position, and there were signs of falling below for a time, but then it regained its position. And started a huge rise. Figure 2 shows the market situation in 2018. Old players should also be very aware of the low price of 6,000 iron at that time, and how many machines were later sold as scrap metal. Let’s take a look at the situation at that time. After falling below the important neckline of 5700, when the market returned to below the neckline and had been trading for nearly a month, we chose to break through upward and the weekly line stabilized at 5700. After that, the subsequent gains were also very impressive, but before the neckline was confirmed to be broken through, pressure was pressure, otherwise it would not have been consolidating below for so long.

Figure 1 shows a similar market situation in 2020. The white line is a bit similar to our current 25200 area. After breaking through the white line, it hovered above it for nearly a month, and then pulled back to the original breakthrough position, and once showed signs of falling below, but then it stood back and started a super big rise.
Figure 2 is the market in 2018. Old players should also be very clear about the low price of 6,000 iron at that time, and how many machines were sold as scrap metal later. Let's take a look at the situation at that time. After breaking through the important neckline of 5,700, when the market returned to below the neckline, it also took nearly a month to break upward, and after the weekly line stabilized at 5,700, the subsequent increase was also very considerable. However, before the neckline was confirmed to be broken, pressure was pressure, otherwise it would not have consolidated below for so long.
Pressure is pressure before it is broken, and support is support before it is broken. It is correct to go short at the pressure level and go long at the support level. The only thing you need to control is your position and your stop loss.
Figure 3, then let's look at the current market. There is no doubt that it has already stood above the neckline of 28,800. If it is still such a full positive column when the weekly line closes next Monday, then there is undoubtedly a lot of room for follow-up.
Therefore, the short position and touching the top at the current position are actually just to find an opportunity to take advantage of a pullback. However, as to whether it will be successful or the extent of the pullback, and whether it can hold up after pulling back to 28,800, these are all unknowns. But what is certain is that this position will not be my long position. If the weekly closing is confirmed, it will not be too late to change the strategy.