KCM: How to determine the inflection point of market trend reversal in foreign exchange trading?

When foreign exchange investors trade foreign exchange gold, judging the direction and inflection point of the trend is an important factor in determining the trading performance. However, many foreign exchange gold traders still have difficulty mastering the method of judging the inflection point position, which leads to a certain degree of loss or dissatisfaction with the profit result.

In fact, foreign exchange transactions only need to remember three points to determine the turning point of the trend.

There are three types of divergence that can be used to determine the inflection point of a trend:

The first way is to compare the last falling (rising) angle of foreign exchange trading with the last falling (rising) angle.

The angle represents speed and efficiency. (If the angle slows down, it indicates a deviation in efficiency. This deviation is based on the decrease in the efficiency of the forces maintaining the original trend, and the internal forces of the original trend have changed unfavorably to maintain the original trend.

The second way is to compare the magnitude of the recent decline (rise) in foreign exchange transactions with the magnitude of the previous decline (rise).

Amplitude represents overall strength, represents effect, and represents endurance. If the amplitude is reduced, it indicates a deviation in overall size (strength) due to a decrease in endurance to maintain the original trend, and overall strength is exhausted.

The third way is to compare the angle and magnitude of the latest rebound (pullback) with the angle and magnitude of the last foreign exchange rebound (pullback).

If the amplitude is the same, but the angle increases; or if the angle is equal, but the amplitude increases, or both the amplitude and the angle increase, it indicates that the counter-trend force is strengthening, and an inflection point may be formed, and action can be taken after falling or rising again.

This is another form of divergence, a divergence of counter-trend forces. It can be called an anti-divergence. Of course it is better to compare the angle and magnitude of another decline (rise) with the last decline (rise), but an anti-divergence can be predicted in advance and a possible divergence.

The above is the whole content of how to judge the inflection point of market trend reversal in foreign exchange trading. For more knowledge about foreign exchange learning, you can pay attention to it.Forex Platform。