What is the good rate of foreign exchange speculation? Is it better to be big or small?

For many investors who have just entered the industry, they may not know much about foreign exchange. Today, I will take you to learn the good rate of foreign exchange speculation and whether the good rate is too large or too small.

Before we understand the impact of large and small dissociation rates, we must first understand the concept of dissociation rates!

The concept of obedient disengagement rate: obedient disengagement rate (BIAS), also known as deviation rate, referred to as Y value, is an indicator of the percentage difference between the market index or closing price and a moving average to reflect the degree of deviation between the price and its MA within a certain period of time, so as to obtain the possibility that the price will reverse or rebound due to deviation from the moving average trend during severe fluctuations, and the price will move within the normal fluctuation range to form the confidence to continue the original trend.

The deviation rate is simply an indicator of the degree to which the exchange rate deviates from its moving average over a certain period of time. Moving averages can generally be regarded as equilibrium prices acceptable to both buyers and sellers over a period of time.Societe Generale Investment

So is the good rate or the good rate?

In fact, the obedient departure rate indicator is just the ratio of the gap between the current price and the average price. It is an indicator derived from the moving average and cannot be measured as good or bad. The obedient departure rate represents a phenomenon. The larger the obedient departure rate, the more the exchange rate has risen recently; the smaller the obedient departure rate or even negative, the more the exchange rate has fallen; if it is near 0, it means that it has recently been consolidating around the average.

When investors observe the good rate indicator, they can use it in combination with two foreign exchange technical analysis tools: stochastic indicator KDJ or Bollinger Bands. The KDJ indicator and the good rate BIAS indicator can make the operation in the rebound market timely and accurate, and the combination of the two is conducive to investors accurately judging the best time to rebound; while the combination of the good rate indicator and the Bollinger Bands indicator is suitable for buying in the oversold rebound market. For this kind of rebound market, investors should not use chasing up, but should combine technical analysis methods and use the combination analysis of BIAS and Bollinger Bands indicators to grasp the opportunity to enter the market.

Is the good rate of foreign exchange speculation good or small? I believe that through the above introduction, investors should have a general understanding. In short, it is necessary to analyze the good rate indicator in combination with the specific foreign exchange market.