What are weekly and daily charts in foreign exchange charts?

Investors need to master the skills of analyzing weekly and daily charts when investing. The function of weekly and daily charts helps foreign exchange investors recognize trends and cycles. Even if you only do short-term orders that close on the day, you can't just rely on hourly charts, let alone inforeign exchange marketIf you want to increase profits, medium and long-term operations are very beneficial.

Making orders with the trend is the secret to winning in the foreign exchange market. Providing trends and major resistance points is the most important function of the daily chart. In addition, the symbolism of each daily chart straight line: usually, the opening price is very low and the closing price is close to the highest price of the day, which is a buy signal; the closing price and the opening price are flat, which is a signal that the market is waiting and may turn. However, the opening price is low, and after the price rises, it falls back to the opening price to close below the opening price, which is a clear downward signal. It should be noted that these signals must be used in combination with other analysis methods to achieve higher accuracy.

In a major rally, there are often some small declines, and the duration of these small declines is usually around a week. Only by studying daily and weekly charts regularly can we avoid being confused by short-term trends.

Homeopathic trading should pay attention to follow up decisively when the trend has just formed, most foreign exchange investors are prone to make the mistake of following up too late in the decline, always thinking that the price is too low, so they continue to buy against the trend, occasionally grasp the rebound opportunity to earn a little, but if you grasp the wrong resistance point, or fail to profit in time position squaring, will be stuck.

Weekly and monthly charts are not just for long-term investors. The function of weekly charts is to reveal not only the general trend, but also the cyclical laws of foreign exchange. For example, before the beginning of 1985, the pound was basically in a downward cycle below the resistance line a, and then continued to rise for 4 years above the support line b, an increase of nearly 9,000 points. Since 1989, the pound has cyclically cycled within the range of 1.5 to 2.0.

Under normal circumstances, if the position of the weekly chart is in the rising cycle, the last weekly chart closes at a high level, and the price breaks through last week's high this week, these are all signs of an increase. The position of the weekly chart in the foreign exchange cycle is very important when judging the trend of the foreign exchange market.

The investment experience of novice investors is insufficient. Investors should always pay attention to investment trends and trends, adapt to changes, and control their investment mindset.