Mainstream trading systems are recognized by most investors because each system has traders who have used it very successfully. Typically, a mainstream trading system also involves mainstream trading indicators. Today, the editor will introduce the mainstream trading indicators in the market, hoping to help everyone take fewer detours and achieve stable profits as soon as possible.
1. Moving Average System
Generally, on the basis of the moving average, the MACD or KDJ indicator is added.
The advantage is: In the trend market, prices are arranged in the order of moving averages, the operation is simple, and the profit space is large. The divergence of MACD and KDJ can well grasp the top and bottom of the trend reversal.
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The disadvantage is: In the oscillation market, the moving average is invalid, and the false divergence of MACD and KDJ becomes a counter-trend operation. Everyone should know the danger of counter-trend operations in a one-sided market.
2. BOLL System
Generally, on the basis of the BOLL line, an indicator such as KDJ or RSI is added, and some people also match it with MACD.
The advantage is: All prices are included in the BOLL track, which is very effective in dealing with the oscillation market. Basically, short on the upper track and long on the lower track.
The disadvantage is: The entry point is not accurate, and there are two situations in the trend market, which are the callback to the middle track and the upper and lower tracks, which are not easy to grasp.
3. Wave System and Dow Theory Based on WavesAdvantages: The wave system can well grasp the overall structure of the trend, which is more macroscopic and intuitive. Dow has a good definition of the structure, and has a clearer understanding of the trend structure.
Disadvantages: The evolution of the wave is too much, based on the 5-wave basis, there are 9-wave, 13-wave, 15-wave and so on. Dow theory is very useful in the trend market, but the definition of the structure is not accurate enough in the shock market.
4. K-line and K-line combination system
This type of system has put aside the troubles of indicators, focusing on the K-line pattern and combination. The most familiar are the shadow line, doji, and the body line, etc. The combination is the familiar head and shoulders bottom, head and shoulders top, and other patterns.
Advantages: It can well grasp the trend structure, and a correct signal can basically give a relatively large space.
Disadvantages: The accuracy is not high.
5. Resistance, support, and trend line system
The basis of trading mainly relies on various trend line drawing methods to find the resistance and support positions and the trend structure position in the market.
Advantages: It has a strong overall grasp of the market;The disadvantage is: The trend line needs to be adjusted in real time with the change of prices, which is not strong in market positioning.
6. Grid System
This system is used by relatively few people, but it is actually a template for computer trading by many foreign investment companies. The grid system is to grid the market surface, which is to say, it is a quantitative trading of prices. This sounds more complex, but in simple terms, it is to evenly divide a price space. The size of a market segment is divided into 3 grids, 5 grids, 8 grids, and 12 grids. The price is evenly spaced, and then operations are held and entered according to the grid.
Advantages: Quantitative operation of profits and risks, stable profits.
Disadvantages: Not strong in grasping the overall direction of the market.
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