There are many strategies for speculating in foreign exchange. We only need to adopt one that we think is feasible, and then after a long period of test and verification, we can choose one that is strictly implemented. Here I provide a trading method based on Dow theory for your reference-the least resistance trading method.

The core of this trading strategy is one sentence: the price always moves in the direction of least resistance.

To clarify the meaning of this sentence, here is an example. There are many rivers on the earth. Streams merge into rivers, rivers merge into rivers, and rivers merge into the sea, which is equivalent to the K-line of various cycles in trading. The dams of streams, rivers and rivers will be equivalent to various trend lines and horizontal support resistance. Streams flow to small rivers, and small rivers flow to rivers and oceans. Small trends always follow the general trend, because when small trends meet the general trend, the dam of the general trend will be stronger and the resistance will be greater. Dams with stronger resistance are not easy to be washed away or burst in most cases, and can withstand more market shocks.

The specific application is as follows:

This method can be used alone or in combination with other indicators. No matter what method is used, it takes a long time to verify and be effective before the transaction can be firm and strictly implemented. We should stick to a strategy and constantly deepen and improve it. Please feel free to consult me if you don't understand anything during the operation.