The moving average is one of the commonly used technical indicators in foreign exchange trading. The parameters of investors can be set as 5-day, 10, 20-day and 30-day moving averages. The point where the moving average index is located is a very important support or blocking position. The longer the moving average is chosen, the stronger the support and blocking power will be. Simply put, the short-term moving average crossing the long-term moving average is a signal of market reversal, which indicates that the future market may deviate from the previous market.

2.KDJ

When the market has no trend or the trend is not obvious, the stochastic indicator KDJ can help investors to make profits in the frequently occurring trend-free market environment. There are two kinds of KDJ indicators, namely, double line and three line. Here, we choose two lines for your analysis. When using KDJ index, we need to pay attention to three points-the value of KD, the intersection of KD and the deviation of KD.

The range of KD is 0- 100. If the KD value exceeds 80, it is an overbought area and should be considered for selling. If the KD value is below 20, it is an oversold area. You should consider buying, and the rest are wandering areas.

(1) When the K line crosses the D line from below, it indicates that the current trend is upward, which is a buy signal. On the contrary, it is a sell signal.

(2) Top-bottom judgment: the price has reached a new high, but KD has not reached a new high. This is a top deviation and should be sold. The price innovation is low, KD is not innovative, which is a bottom deviation and should be bought. And KD hit a new high, but the price did not hit a new high, which belongs to the top deviation and should be sold. KD innovation is low and the price is not low, which is a bottom deviation and should be bought.

3. Bollinger Band

The Bollinger Band indicator is a shock indicator to measure the volatility of the market. The Bollinger Band consists of three main lines. The middle line shows the simple moving average of the price, and the upper and lower lines represent the higher and lower levels of the price relative to its recent moving average, which can help you predict when the price will fall or rise to that level and determine when to buy or sell.

Hold on for a long time

When the price reaches the above line, the current transaction price of assets is relatively high, which is considered as short selling, so investors can consider selling assets, because the expected price will fall in the direction of the central moving average.

underrate

When the price is close to the offline, the transaction price of current assets is relatively low, which is regarded as short selling. Investors can consider buying assets because they expect prices to rise in the direction of the central moving average.

But be careful, because the price may go up or down, it doesn't mean that the price will reverse. You need to further confirm, for example, with a candle chart or other indicators, before you enter the market, to further confirm that the price is indeed reversing.

The above is the introduction of several commonly used foreign exchange technical indicators. Teacher Wu also reminded investors that although foreign exchange indicators have a certain auxiliary role in investment transactions, they can't rely entirely on the market forecast brought by indicator analysis, and reasonable use can produce good results in transactions.