Analysis of Zhonghui Foreign Exchange K-line Combination Intent
In the technical analysis of Zhonghui foreign exchange, the K-line pattern can better reflect the operating psychology of the main control funds, so it is often used by investors to judge trend reversals and perform swing operations. When a currency pair experiences a long-term unilateral trend (such as continuous decline, rise or sideways), one or two classic K-line combinations appear, which is often an important band operation signal.
First, the suction form
In public exchange trading, the strong suction pattern is usually manifested as: when the broader market is in a strong stage, the typical suction pattern is a narrow range of rising volume when rising and shrinking volume when falling. At this time, the OBV indicator shows a rising trend, and there are often suppression actions in the late trading, and the overall rhythm runs against the market.
The form of weak absorption is reflected in the rise in volume against the market, or intermittent volume in the shock of the box.
Shipping form
The characteristics of the strong shipment pattern: the volume is in line with the market but the increase is limited, or the volume is repeatedly pulled during the shock of the box. The weak shipment pattern is manifested as a decline in volume.
Arbitrage patterns
After continuous strong volume, the price enters a slow downward channel, and the rhythm of oscillation is closely related to the MACD indicator. In public exchange analysis, the adjustment cycle of such patterns is usually long.
IV. Counterattack form
Propeller pattern or narrow horizontal pattern, first experience unilateral panic decline, followed by retaliatory rise. Prices in such cases often become a variety with larger stage increases.
V. Replenishment form
The high-stranded varieties exhibit a resistant sideways trade at local low levels. If this pattern does not cooperate with the general trend, it is usually difficult to stay above the pressure level for a long time.
Sixth, the form of rebellion
A large K-line appears first, followed by a reverse large K-line, but no unilateral gun combination is formed. Usually, the strength of the latter K-line will be stronger.
VII. Message form
When the variety experiences a normal technical trend, if it encounters news that affects the price, it should be reflected accordingly. If it is positive, it should be reflected positively, otherwise it may be worse; if it is negative, it should be reflected negatively, otherwise it needs to be studied in depth (especially if it is not substantive).
Eight, trap form
After experiencing a large degree of unilateral operation, the market or variety continues to accelerate in the same direction, which often constitutes a trap.
Nine, the reverse market pattern
When the broader market is weak, the infinite countermarket is effective, but the quantitative countermarket is invalid; in the strong market, the infinite countermarket is invalid, and the quantitative countermarket is effective.
Ten, bipolar form
After a long or rapid unilateral trend, the market appears heavy volume or extreme reverse trend, combined with classic technical signals, such as the sky-jumping star K line, the K value of the weekly KDJ line is lower than 15 or higher than 85, etc., which are often typical signals of bottoming or peaking. In Zhonghui analysis, these signals are the key reference for investors to grasp the trend turning.
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Disclaimer: The content of this article does not represent the views of the Institute of Foreign Exchange. The content is for reference only and does not constitute investment advice. Investors operate accordingly at their own risk.
