In foreign exchange investment transactions, it is very important to judge the future market development trend. Correctly tracking the development trend of foreign exchange can make judgments one step ahead of time, thus making profits in advance. A correct judgment of the trend line of foreign exchange transactions is also conducive to choosing an accurate time and place to make orders. It is no exaggeration to say that as long as investors know how to judge the breakthrough of the trend line in foreign exchange trading, they can greatly improve their chances of making profits. Then the pilot project of Xilong will teach investors some tips on judging the trend line in foreign exchange transactions.

1. What is a trend line?

The so-called trend line actually means that when the foreign exchange transaction price moves in an interval, its highest point and lowest point are correspondingly higher than the previous highest point and lowest point, which is called an upward trend in the industry. On the contrary, if the highest and lowest points are lower than the previous highest and lowest points, we call it a downward trend. In addition, if the highest and lowest points are the same as before, then it is an oscillating trend, also known as a sideways trend or no trend. This is the basic judgment on the trend of foreign exchange transactions. The basic form of trend line in foreign exchange trading is: suppose that in an upward trend, the line connecting the lowest point is the trend line; In a downward trend, the line connecting the highest point is also a trend line.

Second, how to judge the breakthrough of trend line in foreign exchange trading

1, be patient and don't worry.

If we want to judge whether the breakthrough of the trend line is true or not and whether it is an effective breakthrough in foreign exchange trading, investors should be patient enough to observe for a period of time after the exchange rate breaks through the trend line. If the trend is still developing in the direction of the breakthrough line two days after the breakthrough, this is undoubtedly a safe and effective breakthrough, and it is also the most suitable time to enter the market, because at this time, the direction is clear and the chances of making money are greater.

2. Pay attention to the price level two days after the breakthrough.

Suppose that one day the closing price breaks through the downward trend line and develops upwards. At this point, investors need to wait for one day. If the trading price of the next day can exceed the highest price, it means that there is a lot of buying after breaking through the resistance line. If the situation is the opposite, the exchange rate is still developing downward after the closing price breaks through the downtrend line, and the next day's trading is below the lowest price, indicating that after breaking through the support line, the short pressure is relatively large, and investors can invest short.

Judging the breakthrough of the trend line of foreign exchange trading can help investors quickly and accurately judge the timing of entering the market and following up, better grasp the trend of foreign exchange trading, correctly judge the breakthrough of the trend line of foreign exchange trading, and also enable investors to avoid falling into the trap and make steady profits.