First, the volume. An increase in trading volume means an increase in turnover rate, an increase in the average cost of holding positions and a reduction in the selling pressure on the upper position, so that the exchange rate will continue to rise. Sometimes, under the wonderful situation of farmers' chip locking, the exchange rate may shrink and attack, but the ostentation and extravagance of shrinking and attacking will not last long, otherwise the average position cost will not increase, the selling pressure will increase, and foreign exchange will lack the motivation to continue to rise. Therefore, short-term operations must choose a large amount of foreign exchange, especially the large amount of foreign exchange at the bottom.
Second, graphics. Short-term foreign exchange trading should not only pay close attention to the volume, but also look forward to the change of graphics. There are several figures worthy of high attention: W bottom, head and shoulder bottom. Arc bottom, platform, rising channel, etc. When the volume of W bottom, head and shoulder bottom and arc bottom breaks through the neckline position, it should be the buying opportunity. There are two points that must be highly valued. First, it needs to be broken to be useful.
A break without volume matching is a false break, and the exchange rate will often return to the starting position soon. Second, breaking the low price is more reliable, and breaking the high volume is likely to be a "multi-head trap" created by farmers to lure retail investors to follow suit, thus achieving the purpose of delivery. Many times, when the neckline position is broken, there will often be confirmation of withdrawal, which can also be used as a good opportunity to open a position; When the exchange rate platform is cleared, the fluctuation becomes smaller and smaller, especially when the cross lines or small yangxian lines are closed at the low level, the exchange rate often chooses to break through upwards; Foreign exchange with rising channel can be bought when the exchange rate hits the lower track, especially when the lower track is 10-day and 20-day moving averages, and sold when the exchange rate hits the upper track. In addition, there is flag liquidation. The main graphics of box cleaning are similar to those at the W end, so I won't repeat them here.
Third, technical indicators. There are countless technical indicators in the foreign exchange market, at least 1000, and all of them are biased. Investors can't cover everything, just be familiar with a few of them. Commonly used process indicators are KDJ, RSI and so on. Generally speaking, when the K value crosses the D value twice at a low level (about 20%), it is a good buying opportunity; When the high position (above 80%) crosses the D value twice, a dead fork is formed, which is a good selling opportunity. When the RSI index is 0-20, the foreign exchange is oversold and you can open a position; 80- 100, overbought, you can close your position. It is worth pointing out that the biggest lack of technical indicators is lag, and taking it as the only reference scale often leads to large errors.
Commodity springs are much stronger, and the indicators are passivated at a high level, but the exchange rate continues to soar; The commodity spring is much weaker, and the index is already at a low level, but the exchange rate is still falling. Moreover, when farmers manipulate technical indicators, the indicators are often stinky at the time of purchase and almost perfect at the time of shipment. Manipulating indicators to cheat the line is simply a common market-making means for farmers. Therefore, when applying technical indicators, it is necessary to comprehensively analyze all aspects, especially the relationship between quantity and price.
Fourth, the moving average. Short-term operation generally refers to the three moving averages of 5th,10th and 20th. The five-day moving average wears the ten-day moving average and the ten-day moving average wears the twenty-day moving average, which is called the golden fork, which is a buying opportunity; On the contrary, it is called a dead fork and a selling opportunity. The upward enumeration of three moving averages is called multi-head enumeration, which is a sign of strong commodity springs. The 5-day, 10 and 20-day moving averages of exchange rate shrinkage are buying opportunities (note that it must be shrinkage and withdrawal). In fact, which moving average should be repurchased depends on the trend and market of a commodity in spring; All three moving averages are downward enumeration, called short enumeration, which is a sign of weakness. It is not appropriate to interfere.
Short-term foreign exchange transactions, the exchange rate soared and plummeted, short-term experts should not only learn to take profits, but also learn the same main tool: cutting meat. If you have the courage to intervene in short-term foreign exchange trading, you must have the courage to admit failure.
There are many foreign exchange technical indicators, many of which investors can't fully grasp. When investors choose technical indicators for short-term foreign exchange trading market analysis, they should choose appropriate technical indicators that they can skillfully use. You don't have to cover everything, but you should make good use of the methods you have mastered.