Moon line:

Taking XAU/ USD as an example, there are few references and comparisons of monthly positions, and the refined trading points are prone to errors of about 3-8 points, which is not conducive to refined trading, and it is more prone to unnecessary damage in a relatively short period of time. However, for direction guidance, we only need to combine the combination of continuous K-lines and effective breakthroughs in key positions to determine the medium-term direction, and it stems from the substantial extension of the profit interval. Usually, a single trading day or several trading days can not effectively complete the profit extension, so it is more to guide our trading direction in a certain period.

Weekly line:

There are more candle charts in the weekly chart than the monthly chart, and the trend theories such as K-line combination form and time window have higher probability of actual results in the weekly chart. Under normal circumstances, the profit range given by the weekly line can be effectively achieved within one week and cashed in the short term. But there is usually an error of about 2-5 points in the thinning of points.

To sum up, the larger the period of the large-period K-line chart, the stronger the role of technical form and trend theory, and the higher the hit probability. On this basis, the actual effect is that the trend can be expressed more clearly and accurately, but the operating point can not be carefully grasped.

We can draw a conclusion that in foreign exchange trading, the function of weekly chart or even monthly chart is mainly reflected in: grasping the trend.