Short-term trading is a way for investors to participate in the foreign exchange market, as opposed to long-term trading. The difference between them is determined by their holding period. But at this point, the boundaries may be blurred. Under normal circumstances, in the foreign exchange market, we think that the cycle of more than 4 hours is medium and long-term trading, and the trading cycle of less than 4 hours is short-term trading. The following are the main features of short-term trading through ECN trading platform:

Main market trend: daily trading cycle: 1 hour.

Technical analysis indicators: golden section line, average line and K line.

Admission principle:

The daily trend is obvious, which can clearly judge the direction of market operation. The small period is opposite to the main trend, and the trend reaches the key point. The market faces pressure and support, the market turns, and the market releases important news in the opposite direction. The trend triggers the stop loss position.

Trading principle:

Reduce the number of transactions, slow down and slow down your thinking. Adhere to the method of gradually adding positions, and adhere to the method of gradually reducing positions to closing positions. When the daily line or weekly line (main trend) faces important pressure level and support level, don't trade, and the shock market is not good. Don't guess whether the daily market will turn or bottom out. The daily line is only used to see trends, not to trade. The longer the graphic cycle, the stronger the pressure and support of its indicators, and the less likely it is to change the market direction.

When the market is near the pressure level or support level of the two indicators, the indicator farthest from the market shall prevail, and the far indicator is safer than the near one. The cycle of judging the market trend is: daily line and weekly line. Trading cycle15min, 30min, 1H,

Stop loss position:

The opposite of support level and pressure level, the part outside the lowest or highest point of the current K-line market. Medium and long-term trading orders should adjust the stop loss position with the continuation of the market to protect existing profits.

Transaction basis:

The longer the graphic cycle, the stronger the pressure and support of its indicators, and the less likely it is to change the market direction. When the market is near the pressure level or support level of the two indicators, the indicator farthest from the market shall prevail, and the far indicator is safer than the near one. A good trading position (entry or exit position) is as important as judging the direction of the market.

Pay attention to the conversion combination between graphics in different time periods. The premise of technical analysis is that the market will always be. The premise of fundamental analysis is that the market is always wrong. When a pending order is traded, the position must be far away, not a single order, and the pending order transaction is a small probability.