The most basic foreign exchange techniques

Some foreign exchange speculators find technical analysis indicators obscure and fearful of them. In fact, in addition to technical indicators, we can also observe the trend of the exchange rate - grasp the timing of entering the market.

foreign exchange market24 hours of continuous operation, rising and falling, never stopping. Its trend is like day and night on the earth, repeating itself. Correspondingly, we can divide the trend of the exchange rate into four stages: bottoming, rising, topping and falling. These patterns can be judged by observing the exchange rate trend chart such as the commonly used K-line chart.

First, the bottoming stage. The exchange rate bottoming forms generally include triple bottoms, head and shoulders bottoms, double bottoms (W bottoms) and semi-round bottoms (pot bottoms). The larger the lateral construction area of the bottom, the more kinetic energy accumulated on behalf of the rise, and the greater the range of rise. At this stage, the range operation of buying low and selling high should be carried out. If conservatively, you can give up the profit opportunity at this stage and move to the next stage.

Second, the rising stage. When the exchange rate breaks the neckline at the bottom of the previous period, it indicates the beginning of an upward trend, and the height of the rise is generally the vertical height of the bottom of the previous period. This stage is like a young man with abundant physical strength, desperately staying ahead and running far and jumping high. Although he has no stamina, he can start again after a short break if he encounters difficulties. Just like the main stage of the market rise, the amplitude is large and the speed is fast. Although it lasts for a short time, he can immediately launch a new round of upward attack if he encounters upward pressure. The initial period of this stage should be the best time for us to bravely chase and buy. The upward stage is also the main source of our profits.

Third, the head-building stage. It is the late stage of the rising stage. At this time, the market trend attempts to push up again, but the bulls cannot break through the previous wave of highs with all their strength. Finally, they break through the neckline to complete the head and enter the falling stage. At this stage, the early medium and long-term orders should be sold, and the short-term can try to do fast-forward and fast-out interval operations.

Fourth, the falling stage. The same principle as the rising stage, but in the opposite direction. At this stage, people are disillusioned, the exchange rate is unable to support, and the falling speed is rapid until the momentum disappears and enters the bottoming stage. In the falling stage, you should resolutely kill the decline, and the stop loss should be stopped quickly, otherwise the loss will be huge.