The legendary woman who was reborn from the ashes

Chapter 27 High Winning Rate Trading Strategies

Have you ever stood at a crossroads in trading, wondering whether various trading strategies are really effective? Some people question that, from a longer-term perspective, they may just be placebos in the minds of traders, a psychological suggestion without any substantial help. However, this view is too one-sided. The importance of trading strategies, especially those that have been tested by time, cannot be ignored.

Imagine that you are standing in a vast financial ocean, looking around and at a loss. At this time, a reliable trading strategy is like a lighthouse, illuminating your direction and guiding you forward safely.

More than a decade of trading experience has made Jiang Juan gradually proficient in the financial market. Her price behavior trading philosophy has been recognized by many traders. She has won the first place in the stock market competition with her outstanding trading performance and has become a focus of the industry.

In Jiang Juan's eyes, trading is not a gamble, but an art. She has deeply studied the core art of price action trading and is committed to providing traders with valuable experience and insights in the fields of stocks, futures, etc.

Jiang Juan’s so-called high-win trading strategy emphasizes attention to horizontal positions and price behavior.

She believes that in trading, price action trading setups at core positions are crucial. Just identify and draw these core positions on the chart, and then watch and wait for trading signals to appear.

Why are horizontal positions so important? For naked candlestick chart traders, horizontal positions and price action are two key factors.

In Jiang Juan's view, everything in the market originates from these horizontal positions. They are not only the core of trading, but also the essence of the methods of some great traders.

Top Wall Street traders like Livermore, Soros and Buffett are well aware of the importance of these levels as they have a profound impact on future price movements.

Horizontal levels are crucial to timing our trades, providing what is known as a “value zone” where we can define our trade risk and place our stop loss outside this price level.

Understanding of horizontal position line:

The market is in an uptrend and is making new highs. As the price continues to rise, it eventually encounters resistance and begins to fall back. The key is that during the fall back, the price finds support near the previous high, and this previous resistance level is converted into support. Subsequently, the market continues to form rising horizontal lines.

As price pulls back, we watch for price action signals to form around it. These are the price signals we want to see so that traders can trade within the "value zone" in a trending market.

By understanding these levels, traders can time their trades more accurately. It provides us with so-called "value zones" where we can more clearly define the risk of a trade and make informed trading decisions.

Never underestimate the power of trading strategies. In the world of trading, they are like compasses, guiding us to success.

Jiang Juan is the senior who is willing to share these valuable experiences with us. Under her guidance, we are more confident in facing the challenges of the market and embracing the opportunities of the future.

For a successful trader, she does not just rely on feelings or blindly follow the crowd, but more on a precise strategy. This strategy is like an invisible sword that helps her cut through the chaos of the market and find real trading opportunities. And this sword has two core elements-stop loss and price action signals.

Stop loss, like a parachute, is your last guarantee to stay stable in market fluctuations. Only by setting the stop loss at a reasonable price level can you retreat in time when encountering unfavorable situations and protect your principal from loss.

The price action signal is like your navigator, helping you find the right direction in a complex market environment. About 80% of transactions occur at these core horizontal positions and price action signals.

These horizontal positions are like the "traffic hubs" of the market, and the price action signals are the "traffic lights" on these "traffic hubs". Only at these "traffic lights" can you see the true dynamics of the market and find real trading opportunities.

Suppose you are driving in a busy city and your goal is to find a place to park. You first need to set a reasonable parking location, which is your stop loss point. Then, you need to observe traffic signals, which are your price action signals.

Only when you see the right signals do you start looking for parking spots. Similarly, in trading, only when you see the right price action signals do you start looking for trading opportunities.

Therefore, trading is not a complicated thing. You just need to master the strategy and strictly implement it. In this strategy, stop loss and price action signals are two indispensable elements.

In fact, there is another secret language hidden in the trading market. This language is silent, but reveals the market's emotions and intentions.

The market is like a huge stage, and prices are like actors on the stage, performing thrilling farces between support and resistance levels. Our task is to become the director of this farce, capture those key entry signals, and lay out the trading strategy with the highest chance of success.

The trading chart in the stock market is like a vivid painting. A wonderful dance is performed between the resistance and support levels within the price trading range. Every high and low point is a mark left by the price behavior, telling us the emotional changes and power contests in the market.

Within this range, we can observe a peculiar price action pattern – a sideways range trade entry signal.

The box theory was created and discovered by Nicholas Darvas, an American dancer.

When Dawas first entered the stock market, it was not smooth sailing. Like most investors, he liked to get information everywhere and even dreamed that someone would recommend him a bull stock. But he soon found that not only did he not make money from the stock market, but he lost half of the capital he had just invested.

After discovering the box theory, he used the $3000 he earned from dancing to make a net profit of $18 million in 200 months. He found that stock prices generally fluctuate within a certain range, thus forming a box in which stock prices operate.

He found that when the stock price slides to the bottom of the box, it will be supported by buying orders, and when the stock price rises to the top of the box, it will be under pressure from selling orders. Once the stock price effectively breaks through the top or bottom of the original box, the stock price will enter a new stock box, and the top or bottom of the original stock box will become an important support and pressure level.

Therefore, as long as the stock price rises and hits another box, you should buy; otherwise, you should sell.

When the price touches the upper limit of the sideways fluctuation range, it is like telling us: "The market is about to change, seize this opportunity!" At this time, we can lay out our trading strategies and wait for the next move of the market.

Markets don’t always trend as we expect, instead they sometimes move back and forth between support and resistance levels.

In such range-bound market conditions, it is still possible to find high-probability trading signals. In a sideways range-bound market, using horizontal positions for price trading is a good approach. This trading mode focuses on price trading entry signals formed at the upper and lower rails of the range.

The price fluctuates in a range, and when the price fluctuates back and forth between support and resistance, we can wait for the price to hit one of the upper and lower boundaries of the range and then observe where the price action trading signal is formed. This usually provides us with a high probability entry signal and a very simple trading strategy. At the same time, the horizontal line position defines a clear risk and reward for us.

By analyzing the trading chart, we can see that it is not difficult to trade price action at a horizontal position. As long as we master the secrets of price action, we can easily navigate this market and capture those high-probability trading opportunities.

So, don't be confused by complex trading indicators and theories, return to the simplest and most direct price action trading! In this market, use price action as the key to open the door to success!

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