Because foreign exchange is a two-way transaction, foreign exchange investors can make a profit whether they choose to go long or short. However, no matter how rich the investor's foreign exchange trading experience is and how long it takes to speculate in foreign exchange, it is difficult to judge whether to be long or short.
Below, Lin Xiaoqian, an analyst at Juhui ggfx, summed up several indicators that can be used to judge the trend of long and short, and explained them in detail for foreign exchange investors:
1. Judging from the K-line shape
K-line has many forms. In general, if there are W-shaped bottom morphology, multiple bottom morphology and V-shaped inversion morphology, it is multi-signal. On the other hand, if there is an M-shaped head, it is a short signal.
With regard to the method of judging the long and short trend by K-line shape, investors need to study and analyze more and understand the principle. If they don't understand, they can communicate with analysts or try to experience documentary transactions.
2. use MACD to judge
If you want to judge how empty it is according to technical indicators, MACD is also a common indicator choice. For example, when MACD forms a golden cross in the low position, it usually makes multiple signals; When the high position forms a dead fork, it is a short signal.
Analysts remind everyone that judging long and short signals according to technical indicators should tolerate the lag or premature entry of indicators, so investors should maintain strict trading discipline. It is also very beneficial if indicators and tables can be combined to complement each other.
3. judge by bollinger bands
The Bollinger Band is one of the most important technical indicators in foreign exchange trading, and it is also very effective to judge the long and short trend. For example, when the middle line of the bollinger band rises at a lower position and crosses the moving average, it supports the exchange rate and forms a multi-signal; On the contrary, it is a short signal.
The Boolean channel is based on the simple moving average, because the simple moving average is used to calculate the standard deviation. It has many functions, is very effective and convenient to use, and is very flexible to use, so it is loved by many foreign exchange investors.
In foreign exchange trading, in addition to effectively judging long and short positions, it is more important to have a safe and stable trading environment, so that investors can execute transactions in seconds as long as they choose to go up and down, avoiding "profit killers" such as delays and slippage. After investors make profits, they can withdraw cash immediately through safe channels such as UnionPay and enjoy the most efficient and safest investment experience at all times.