How to judge the method of bottom fishing?
The most important way to invest in the foreign exchange market is to try to buy at a relatively low price, and then choose to sell at a relatively high price. Any attempt to buy at the lowest point or sell to the highest point is a manifestation of irrational greed, and the result is bound to face the fate of buying or shorting prematurely. Therefore, when the exchange rate of the broader market and foreign exchange enters the bottom area, investors should take the initiative to buy sets, actively choose foreign exchange, and seize the right time to buy. The main techniques for choosing foreign exchange in the bottom area are as follows:
1. Select foreign exchange whose price is already far lower than its historical transaction-intensive area and the recent lock-up transaction-intensive area.
2. Choose a foreign exchange that has undergone a period of deep downward adjustment, and the price is far away from the 30-day average and the deviation rate is large.
3. In the actual operation process, it is necessary to refer to the mobile cost distribution. When the profit margin in the mobile cost distribution is less than 3, the foreign exchange should be designated as the key focus.
4. "Weight when rising, weight when falling". At the end of a bear market or during the transition to a bull market, when choosing foreign exchange, pay attention to whether the foreign exchange performance is good and whether it has growth and other fundamental factors.
5. Choose a foreign exchange with a rich theme, such as a new small-cap foreign exchange with a high proportion of transfer themes.
6. When selecting foreign exchange through technical indicators, we should not only choose foreign exchange with successful daily indicators, but also focus on foreign exchange with successful daily indicators, weekly indicators, and monthly indicators. Such foreign exchange bottoms are often historic bottoms.
7. From the analysis of trading volume, on the eve of the exchange rate bottoming out, the trading volume often continues to be sluggish. When the general trend stabilizes, it is necessary to choose active varieties with moderate and enlarged trading volume according to the changes in the disk.
8. From a morphological perspective, in the bottom region, we should choose a long-term downturn, a long-term construction time, and a clear foreign exchange.
9. From the analysis of foreign exchange trends, when the broader market is at the bottom of the region, we should pay special attention to the leading indicators in foreign exchange. We should closely follow and observe the foreign exchange that stabilizes before the broader market, starts before the broader market, and increases in volume before the broader market. The mainstream hot spots in the future market often rise in this type of foreign exchange.
It is worth noting that when selecting foreign exchange to buy in the bottom area, the opposite theory must be skillfully applied. The bottom repeatedly emphasized by the exchange rate review and the bottom recognized by most investors is often just a phased bottom. At this time, do not fully fill or heavy positions. Moreover, pay attention to timely profit-taking.
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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.
