Hong Kong
2024-11-10 20:05
IndustryMarket Cyclicality and Trading Strategies
Financial markets exhibit distinct cycles, which experienced traders and investors often use to formulate more precise trading strategies. According to the AMDX theory, each trading day in the market plays a different role. We can summarize these cyclical phenomena into the following four stages:
1、Monday - Accumulation Phase
At the beginning of the week, the market is usually in the accumulation phase. Most traders are in a wait-and-see state at this time, with low market volatility and relatively low trading volume. The market behavior in this phase mainly involves fund accumulation, making it unsuitable for large-scale trading, as the market direction is still unclear.
2、Tuesday - Manipulation Phase
Tuesday is often the manipulation phase, where the market starts to show some volatility. This is the time for major players to influence price trends using market psychology and technical analysis tools. Traders need to be wary of false signals and sudden price changes in this phase.
3、Wednesday - Distribution Phase
By Wednesday, the market enters the distribution phase. This phase is characterized by the confirmation of price trends, with significant increases in trading volume and volatility. Traders can make corresponding buy or sell operations based on the established market trend, capturing major profit opportunities.
4、Thursday - Continue or Reversal Phase
Thursday is a crucial day where the market may either continue the previous day's trend or undergo a trend reversal. Traders need to closely monitor the technical and fundamental aspects of the market and make flexible response strategies.
Chart Analysis
The chart shows how winners and losers perform on different trading days. This chart is based on the author’s own trading data and illustrates the trends in profits and losses on different days. Each day’s data shows that winners profit from the market through precise trading strategies, while losers suffer losses due to erroneous decisions or market volatility.
(1) Sunday: Winners’ profit is 1.936K.
(2) Monday: Losers’ loss is 996.49.
(3) Tuesday: Winners’ profit is 2.491K.
(4) Wednesday: Losers’ loss is 440.99.
(5) Thursday: Winners’ profit is 3.205K.
(6) Friday: Winners’ profit is 1.284K.
(7) Saturday: Winners’ profit is 21.56.
Strategy Summary
According to this market cycle theory, Monday’s accumulation phase is unsuitable for large-scale trading due to the unclear market direction. In contrast, traders should formulate more specific trading strategies based on market performance from Tuesday to Thursday, aiming to seize more trading opportunities during periods of high volatility.
By analyzing the financial performance of winners and losers within this week, we can gain a clearer understanding of market dynamics. The key is to use scientific analysis and robust strategies to stand firm in the daily market contest and become the winning party.
This summary not only optimizes trading strategies but also deepens our understanding of the market. I hope this helps you better grasp market rhythms and achieve more successful trades.
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Kevin Cao
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Market Cyclicality and Trading Strategies
Hong Kong | 2024-11-10 20:05
Financial markets exhibit distinct cycles, which experienced traders and investors often use to formulate more precise trading strategies. According to the AMDX theory, each trading day in the market plays a different role. We can summarize these cyclical phenomena into the following four stages:
1、Monday - Accumulation Phase
At the beginning of the week, the market is usually in the accumulation phase. Most traders are in a wait-and-see state at this time, with low market volatility and relatively low trading volume. The market behavior in this phase mainly involves fund accumulation, making it unsuitable for large-scale trading, as the market direction is still unclear.
2、Tuesday - Manipulation Phase
Tuesday is often the manipulation phase, where the market starts to show some volatility. This is the time for major players to influence price trends using market psychology and technical analysis tools. Traders need to be wary of false signals and sudden price changes in this phase.
3、Wednesday - Distribution Phase
By Wednesday, the market enters the distribution phase. This phase is characterized by the confirmation of price trends, with significant increases in trading volume and volatility. Traders can make corresponding buy or sell operations based on the established market trend, capturing major profit opportunities.
4、Thursday - Continue or Reversal Phase
Thursday is a crucial day where the market may either continue the previous day's trend or undergo a trend reversal. Traders need to closely monitor the technical and fundamental aspects of the market and make flexible response strategies.
Chart Analysis
The chart shows how winners and losers perform on different trading days. This chart is based on the author’s own trading data and illustrates the trends in profits and losses on different days. Each day’s data shows that winners profit from the market through precise trading strategies, while losers suffer losses due to erroneous decisions or market volatility.
(1) Sunday: Winners’ profit is 1.936K.
(2) Monday: Losers’ loss is 996.49.
(3) Tuesday: Winners’ profit is 2.491K.
(4) Wednesday: Losers’ loss is 440.99.
(5) Thursday: Winners’ profit is 3.205K.
(6) Friday: Winners’ profit is 1.284K.
(7) Saturday: Winners’ profit is 21.56.
Strategy Summary
According to this market cycle theory, Monday’s accumulation phase is unsuitable for large-scale trading due to the unclear market direction. In contrast, traders should formulate more specific trading strategies based on market performance from Tuesday to Thursday, aiming to seize more trading opportunities during periods of high volatility.
By analyzing the financial performance of winners and losers within this week, we can gain a clearer understanding of market dynamics. The key is to use scientific analysis and robust strategies to stand firm in the daily market contest and become the winning party.
This summary not only optimizes trading strategies but also deepens our understanding of the market. I hope this helps you better grasp market rhythms and achieve more successful trades.
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