? Morphological analysis of m-head
The prefix M consists of two high points with similar prices and is named after the English letter "M". Generally speaking, the left high point is higher than the right high point, and the difference between them is about 3%. When the M-head shape is formed, it is often at the end of the upward trend process, and the currency price has established a new high point near the first high point. After that, the currency price has fallen back, supported by the upward trend line, and now it falls back to a certain point. Then the currency price continued to rise, but the upward momentum was insufficient. After encountering pressure near the previous high point, the currency price went down again, thus forming a pattern of two tops. As shown in the figure below, it is a successfully constructed M-head form.
The key to the confirmation of M prefix lies in the breakthrough of neckline. The so-called neckline refers to the horizontal line passing through the lowest point between two high points. If the neckline does not break through successfully, even if the K-line shape looks like an M-head, it is not an M-head shape, and the construction of the M-head shape fails, and finally it becomes a triple-top shape. As shown in the figure below, the construction of M-head failed, thus forming a triple top form. If the neckline is broken, the shape of M head can be confirmed. However, in the actual market trend, there is often a process of withdrawal confirmation after the neckline is broken. If the currency price continues to fall after the callback, it also means that the M-head pattern is established. On the contrary, it is a false breakthrough.
Of course, there is another situation that needs special attention, that is, the possibility of false M-head phenomenon, as shown in the figure below, which is a false support that pierces the neckline. So once again, before the M-head is successfully built, don't determine it as M-head and operate blindly. It is also said that the potential M-head shape may have a triple top, and of course it may also evolve into a rectangle or triangle. Therefore, before the neckline is determined to break through, the neckline always belongs to the support line, and after the neckline breaks through, the support will turn into suppression. Therefore, after the M head is determined, the neckline can be used as a key indicator to measure the market outlook.
M-head actual combat teaching
I believe the above explanation is very clear, so how to combine the actual operation is what everyone is most concerned about at present. In fact, it is also very simple to use. The following figure illustrates the successful construction of M-head. First of all, M-head must have experienced a boom in the early stage, so there must be many friends holding the spot in front, and once the phenomenon of bottoming out below appears, everyone needs to pay attention in advance. Once the second peak is found not to break through the previous high point, it needs to be focused on, and once M-head is confirmed, it will be cleared immediately, so don't hesitate!
And friends who trade contracts are also very simple to operate. First, a group of orders! For example, in the process of going long near 420 and the currency price continues to fall to 405, if the position allows, it can be carried out first, and then pay attention to the low point of the previous upside, and pay attention to whether there is support near there. If not, cut the meat (it is possible to get out of the V-shaped roof), continue to hold it when obvious support is found, and then prepare to cut the meat and leave near the previous high point. In fact, the operation idea of this form can also learn from the operation idea of V-shaped roof, that is, the trend is clear and the trend is the primary key. For example, when supporting below, once the support is confirmed, do more! Then leave in time at the previous high point, or leave when the profit reaches a certain level, and then continue to enter the market empty when there is a callback, making profits near the neckline position. Then confirm that M heads constitute a continuous layout empty list! This is time and again, and this is also the importance of learning technology. Although this can't make everyone lose money, it can make you make a fortune when the opportunity comes!
Therefore, the rise and fall of money prices will have a certain law, and whether you know this law depends on the comparison of personal knowledge accumulation. If you want to survive in this market, you should spend more time studying. The market will not give you a sunny day because of your laziness, so don't complain, learn more and summarize more. I believe the market will treat you well. I'm Feng, an old leek with five years' practical experience. At present, I will analyze the market trend for my friends every day and share some knowledge with you every day, hoping to help you.
?