Effective technical stop-loss method commonly used in practice of foreign exchange speculation

In foreign exchange trading, combining stop loss settings with technical analysis eliminatesforeign exchange marketAfter the random fluctuations, set stop-loss orders at key technical levels to avoid further expansion of losses. Generally speaking, the use of technical stop-loss methods is nothing more than betting on small losses and making big profits.

Through the analysis of the operating pattern of the stock price, once it is found that the stock price is broken, it will resolutely stop the loss. In actual combat, foreign exchange investors should also pay attention to not reaching out to pick up the knife in the air after stopping the loss. After the downward trend of the stock price is established, they should hold their pockets tightly and come forward in the downward trend to grab the rebound. It is like licking blood at the edge of the knife, taking copper coins in the fire, especially the innumerable small decline of yin and yang, which makes investors often have the illusion of stopping the decline, thus missing the opportunity to stop the loss early.

The trend tangent stop loss method includes the stock price effectively falling below the tangent of the trend line; the stock price effectively breaking through the Gann angle line 1 × 1 or 2 × 1 line; the stock price effectively falling below the lower rail of the rising channel, etc.

The pattern stop loss method includes the stock price breaking the neck line of the head and shoulder top, M head, arc top and other head forms; the stock price has a downward gap to break through the gap and so on.

The K-line stop loss method includes a short cannon with two yin clipping one yang and two yang after yin, or a guillotine with one yin breaking three lines, as well as a typical K-line combination such as the Dusk Star, the head piercing and the foot breaking, the shooting star, the double flying crow, and the three crows hanging from the treetops.

Chip stop loss method Chip transaction dense area will have a direct support and resistance effect on the stock price. After a solid bottom is broken down, it will often be transformed from the original support area into a resistance area. Set a stop loss level according to the chip transaction dense area, and once the break is immediately stopped.

Generally speaking, MA10 can maintain a short-term trend, MA20 or MA30 can maintain a medium-term trend, and MA120 and MA250 can maintain a long-term trend. If you are a short-term customer, you can use MA10 as a stop loss; if you are a long-term buyer, you can refer to MA120 and MA250 as stop loss points; for mid-line customers, MA20 is more important in practical application.

If investors buy in the lower track of the ascending channel, wait for the end of the uptrend before positioning squaring, and set the stop loss near the relatively reliable moving average. If the stock price has been above MA20 and MA20 is rising, there is no need to worry about its slight correction. During the rise, the stock price correction will always stop above MA20; and after losing the energy to rise, the stock price starts to pull back or sideways, MA20 will gradually turn from upward to flat, at this time should cause high vigilance, once there is an effective fall below MA20, within 3 days can not stand again, then the stop loss should be immediately out.

The stop-loss method is a sell instruction issued by a technical indicator as a stop-loss signal, mainly including: MACD appears green bars and forms a dead fork; SAR falls below the turning point and turns green, etc. The simplest and most practical of them is the SAR parabolic steering indicator, also known as the stop-loss turning operating system. SAR is like the patron saint of stock prices. Once the rising speed cannot keep up, or the stock price reverses and falls, SAR will keep an eye on it. If the stock price falls below SAR, it is an excellent signal for position squaring shipments.