Basic flow of the route transfer logic

The transition logic is as its name implies

Rather than cutting losses, it is a logic of simply making a transition

Therefore in the market

Transition = does not go against the trend, in other words

Transition = a one-shot choice is appropriate

Average loss (nampin) only serves to cover losses

Also, if you incorporate nampin, the meaning of transition becomes completely meaningless

Because transition is a logic that relies on not reversing it

Nevertheless, adding nampin comes from the idea that it will reverse

If you adopt “reversal”

You will misjudge the place to transition

You hesitate to cut

If you add nampin to a transition, it becomes a factor that leads to at least some stumbling

In transition, nampin is effective only when a trending market appears

It is about buying more or selling more; you could call it pyramiding or nampin

It is simply increasing the amount

But you enter it precisely because a trend market has progressed to some extent

It is not "covering losses" but "increasing profits"

Now, what was the concept of the transition logic?

"Transition is a trading logic based on not going against the trend," right?

Then

Compared to nampin that covers losses,

nampin or pyramiding that increases profits in an advancing trend is far superior, right?

If you think in terms of the transition logic, that’s how it is

Also, transition profits are realized at a temporary top or at the top end

A temporary top can be considered with Dow Theory patterns

But because of that, the profit is small, so the merits of transition cannot be utilized

And the true top is when the major trend market ends and reverses for profit-taking

At this time, the profit-taking pips are from at least 1 yen

To utilize both, you simply enter one-shot split into halves

In other words, it is not “nampin” but dividing one shot into two halves during a transition

The core of transition logic is

“Do not reverse with the trend, and pursue profit”

Therefore, by halving, the pursuit of profit should be from the “temporary top” and the “profit to the tail”

Also, when you increase your positions (buy more or sell more), the one-shot should be split into halves

Basically, let’s not forget the basics of Dow Theory

Technicals suitable for transition include

25 EMA, Envelopes 25, Support/Resistance, Dow Theory, Breakouts

That’s about it

Everything else is covered by those technicals

Losses:Profit

From that perspective

A temporary top logic alone does not lead to significant capital increase

And the approach of small losses: big profits is inefficient

Therefore in transition logic

Aim for a temporary top and a tail-eating top

Nampin to cover losses must never be used

That is the law of transition logic

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