What are the short traps in gold trading? How to distinguish the short trap?
The short selling trap is that the mainstream funds in the market are short on a large scale, and the gold price shows an obvious weak pattern in the market, which induces investors to conclude that the market will continue to fall sharply, and there will be panic selling.
The identification of short pitfalls mainly from the aspects of information, capital, macro fundamentals, technical analysis, market sentiment and so on
Analysis at the news level.
Major funds often use the advantages of publicity to create a short atmosphere. Therefore, when investors encounter constant bad news in the market, they should be extra careful, because it is under the heavy bombardment of all kinds of bad news that mainstream funds can easily build positions.
Analysis from the perspective of trading volume
The characteristic of the short trading volume trap is that with the continuous decline of gold price, Quanneng has always been in an irregular shrinkage, and sometimes there is even a phenomenon of no volume drop or no volume drop on the disk. The individual stocks in the transaction are also very inactive, creating a long-term negative atmosphere for investors. It is in this pessimistic atmosphere, the main force is often able to easily bargain, thus forming a short trap.
Macro fundamental analysis
It is necessary to understand the policy factors and macro fundamental factors that fundamentally affect the market strength, and analyze whether there are substantial negative factors. If there is no special substantive short factors in the background of stock market policy, the gold price will continue to plummet, and at this time, it is easier to appear the short trap.
It is analyzed from the technological form
In the short trap, the market turnover situation is not optimistic, will be no amount of empty fall or no amount of fall. The transaction is not optimistic, creating a very pessimistic atmosphere. Investors have been selling. The K-line chart is characterized by several consecutive long negative plummets, breaking through various support levels, causing a chain reaction of market panic. In terms of technical indicators, the short trap will lead to serious deviation of technical indicators, and multiple indicators will deviate from multiple cycles simultaneously.
From the perspective of market sentiment
And in the short trap, the market will continue to decline, forming a heavy hold on the market, the popularity in the market will continue to be used up. However, it is often at a time when market sentiment is extremely low, just when Mingjin market is not far from the real bottom. The main force that creates the short trap in the market will also be forced to stop because it quickly reaches the market bottom line.