Next, let me introduce a trading strategy that has a high return rate and is relatively easy to understand. It can help you achieve this goal.

This strategy is particularly friendly for small capital. If you can choose good markets and highly volatile varieties, then the annualized return using this strategy can exceed ten times, allowing you to achieve financial freedom in two years.

Moreover, the applicability of this strategy is very strong, regardless of whether it is stocks, futures, foreign exchange, precious metals, cryptocurrencies, or Hong Kong stocks, US stocks, international futures, or index varieties, it is applicable.

As long as you dare to use it, this strategy can bring you excess returns.


Next, I will discuss the principles and practical operations of this strategy.

I like to call this strategy the consolidation trading method.

The principle is like this.

If you view trading with a consolidation mindset, you will find that all markets are consolidating. If you can do consolidation, then you can handle all markets.

When we view money as a form of energy and K-line charts as a form of fluctuation (consolidation) of money energy, we can understand the market like this:

In the trading market, K-line fluctuations are like ocean waves, one after another. If we enter the market at the crest or trough, going from the bottom to the top or from the top to the bottom, we can achieve the goal of small losses and large profits.

As shown in the figure, if you buy or sell in the circled area, using previous high and low points as take-profit and stop-loss points, then if you are wrong, the loss will be small; if you are right, you can capture a large segment of the market. By doing this long-term, you can eventually achieve profits.

The meaning of all markets being in consolidation is:

If the market is not consolidating on the five-minute chart, then it is consolidating on the hourly chart; if it is not consolidating on the hourly chart, then it is consolidating on the daily chart; if it is not consolidating on the daily chart, then it is consolidating on the weekly chart, or on the monthly chart, on the quarterly chart, on the yearly chart...

Similarly, you can also understand that all markets are trending.

If the market is not trending on the five-minute chart, then it is trending on the hourly chart; if it is not trending on the hourly chart, then it is trending on the daily chart; if it is not trending on the daily chart, then it is trending on the weekly chart, or on the monthly chart, on the quarterly chart, on the yearly chart...

In this article, I mainly talk about consolidation; how to trend will be discussed later.


How to consolidate?

The answer is simple. Go long at low levels and short at high levels. If the market breaks through the high and low points, then stop loss.

Everyone has seen ocean waves, right? You enter the market at the crest or trough of the wave. As long as this wave (consolidation) is large enough, you can achieve small losses and large profits. The basic method is like this; we will talk about details later.

Next, I will take the Shanghai Composite Index as an example to discuss practical operations. Other varieties are the same on the K-line chart; you can find this by carefully reviewing a few varieties.

As shown in the figure, this is the monthly K-line chart of the Shanghai Composite Index. The middle part between the two arrows is a very large consolidation area.

If you strictly follow the method of consolidation discussed earlier, going long at low levels and short at high levels.

Your operation should be to start buying when the market reaches the 3 and 4 area, and to start selling short when it reaches the 1 and 2 area. This way, you can achieve very good returns.

This is the overall theory, along with specific operational details.

Currently, I am trading and also involved in trading-related business.

In summary, no matter what methods, ideas, techniques, or resources you have, you can communicate with me to see if there is an opportunity for us to grow the trading business together.

Thank you for watching. I am Xiao Fei, nice to meet everyone. Xiao Fei focuses on Ethereum contract spot ambush. The team still has spots available; jump on board quickly to become the dealer and a winner. #巨鲸动向 $ETH$BTC