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Traders cannot avoid various indicators in their trading. However, there are too many indicators and a lot of subjectivity. However, changes in any indicator are inseparable from price and volume. Therefore, what is simple in nature through phenomena is often the most real and best. Dalian Precious Metals
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Conclusion 1: Complex calculations of indicators can only Bringing reference to the decline, the closer to the essence, the stronger the reference.
The expression form of price is the expression form of line volume! This is the essence, it is naked and the truest extension of any indicator is based on it. But the more complex the extension is and the further it is from the essence, the less effective it will be.
Take for example two extensions from the price
The North Dakota Crude Oil Pipeline (), which has always been in the whirlpool of public opinion, was supposed to become an important export channel for Bakken shale oil and effectively promote the development of the Bakken oil field. However, in The U.S. Department of Justice intervened and was forced to suspend the project. Analysts believe that rerouting is labor-intensive, costly and may be delayed for months to years, which will inevitably have a significant impact on the outsourcing and development of the Bakken oil field, resulting in a large discount to the benchmark price. Dalian Precious Metals Investment Promotion (Fortune
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This kilometer-long pipeline was originally scheduled to be put into use at the end of this year and will exceed 10,000 barrels/ Japan's crude oil was transported to Illinois through several states, then connected to another pipeline and transported south to Texas. Now, due to the "unprecedented and strong intervention" of the U.S. Department of Justice last week, the work has been suspended.
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Protests focused on Section B near Lake Ossie ( ) is too close to this large reservoir on the Missouri River that is also important to history and culture. The U.S. Army Corps of Engineers will now need to evaluate whether it is following federal laws such as the National Environmental Policy Act. If there is no permit approval process it may take at least a few days to start the process over again. Another option is to reroute. Although there are currently several diversion options, the vast majority still pass through culturally important sites for Aboriginal people or through large bodies of water. The greater the diversion, the greater the regulatory obstacles. There have been previous proposals to cross the Missouri River from the Bakken Basin, where crude oil is produced. Hansen (r), director of a local environmental company in North Dakota, said: "Since the end of the pipeline is the oil production area, the pipeline will have to cross the Missouri River sooner or later."
However, protesters insist that the pipeline crossing the Missouri River cannot avoid the risk of direct pollution of the water body after leakage and will continue to protest. Construction company R() preferred a more southerly route because it would be shorter and cost $10,000 less. But experts say the obstacle would be to head farther north from the Bakken Basin town of Stanley and avoid getting too close to the Missouri River.
However, this would require significant changes to the plan, requiring new federal and state approvals and making it difficult to extract crude oil from the Bakken field (a problem not encountered with the current plan). However, according to the North Dakota government's current pipeline plan, it took more than two years to get approval from the state and federal levels. You can imagine how difficult it is to get approval again.
In addition, winter is coming and if the problem cannot be solved, the construction itself will be very difficult. Against this background, the protesters decided to continue the wave of protests into the winter. RB Chairman Ochumelov (RB) said:
&;This is a big problem, why should it be accelerated? Now we need to sit down and consider the road ahead without rushing.
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The bar moving average then extends from the difference between the two moving averages and then extends from the difference to the average difference and then to the multiple difference between and. This is a classic indicator. However, the authenticity of the data is lost at every step. Its reliability is also greatly reduced. And many of the extended indicators are extended dozens or hundreds of times, and its reference value can be imagined.
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Conclusion 2: The more indicators you refer to, the more difficult the operation will be and the greater the possibility of failure.
Since the operation accuracy of a single indicator is not high, investors are accustomed to using multiple indicators for reference. However, this method lacks explanatory power, and the reason is similar to the conclusion one, because each step loses authenticity and also incorporates the invalid parts of other indicators. This way, when the market is good, the success rate is okay; when the market is not good, you still lose money and you don’t know how.
Conclusion 3: The indicator is just a reference to the main force, which can reversely manipulate the indicator
Trading participants are human, so there are too many uncertainties. Who says that a high cross will definitely lead to a decline? Who dares to say that a high R will mean a decline? To the top? Indicators are for reference only! The market of counter-indicator operation greatly exists. All funds participating in the capital market are highly utilitarian. Of course, large funds are intended to make more money. Most investors aim to gain the price difference. There is a problem here, so there are shocks, market crashes, surges, etc. The purpose of all this is to wash away the money you use indicators to wash away. Conclusion 4: The trend is our only benchmark indicator. The focus should be on trend judgment rather than buying and selling points
Everyone makes profits in bull markets, takes losses in bear markets, and even loses money overall. The key point is: see the trend clearly. When the trend is good, I don't care how you lie to me. I won't get out. When the trend goes bad, no matter how you fool me, I just won't get in. No one can resist the trend. Why should we give up the inevitable trend and pursue those uncertain and accidental buying and selling points?
Conclusion 5: Overcome the weaknesses of human nature to form your own profit model
The weaknesses of human nature are fear and greed, which are the enemies of trading. To give the simplest example: Suppose someone sets for himself a buy when the daily moving average moves from falling to flat and upward, and a sell when the daily moving average moves flat to downward. This is what you do no matter what happens during the mode. This reduces a lot of greed and fear and reduces fearless sacrifice.
Conclusion 6: Indicators alone are not enough but also have correct trading concepts, entry timing and stop loss concepts
The moving average is the simplest system and is the basis of all indicators. But this does not mean that you can make a profit by operating strictly according to the moving average: the profit from trading according to the moving average is very weak.
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