The multi-headed trend is backtracking strategy

The multi-headed trend is backtracking strategy

• Multi-headed retracement point

  The idea behind the pullback is to judge whether a stock is in a strong position based on the shape of several straight lines and to grab the low buy at the time of the pullback. As the name suggests, the main point of this strategy is divided into two parts: the pullback and the pullback point.

  

• The multi-headed trend

  

  If the number of days from the short to the long moving averages are arranged from top to bottom, we judge the stock price to be in a multi-head trend.

  We can think of the shorter averages as the intentions of the short-term investors, and the longer averages as the intentions of the long-term investors. So when the stock price is in a multi-head trend, it means that the short, medium and long-term investors are more consistent, that is, the stock price is in a strong phase.

  Similarly, if the number of days from a short to a long straight line is arranged from the bottom to the top, then the stock price is in a hollow trend, and then the stock price tends to fall. If we find several straight lines repeatedly intersecting and entangling each other over a period of time, then the stock price is in a turbulent phase.

  The problem is that these stocks are all in the uptrend phase, so how do we choose the right entry point?

• Point of withdrawal

  Suppose a stock is in a multi-head trend. If the price retracts to some straight line and does not break the pattern of the multi-head trend, we call it a retracement point.

  The short-term investor gains in the uptrend, which leads to a downward adjustment in the stock price, which is a normal phenomenon. If in the adjustment, the multi-head trend is still broken, it means that the stock is still in the strong phase and will continue to rise, then this retracement is the right time to enter the market.

  Of course, not all methods are all-powerful and not all retracements are guaranteed.