The most useful technical analysis in Forex, what is included in Forex technical analysis

In the process of technical analysis of foreign exchange trading, through the principle of trend analysis and pattern analysis, especially by analyzing the support and resistance levels of exchange rate fluctuations, it is easy to determine the key price levels that limit the trend of the exchange rate, but when the exchange rate reaches this level, whether it can break through has become a difficult problem to grasp. Therefore, the technology of foreign exchange trading also needs to use various technical indicators to analyze and judge in order to improve the accuracy and reliability of future exchange rate movements**. In general, a technical indicator for forex trading is a mathematical calculation of the volume of foreign exchange transactions, or volumes, and the movement of exchange rates can be used to determine the value of foreign exchange rates.

Of course, there are times when these indicators can provide appropriate signals to buy and sell, but at other times they give false signals. Therefore, it should be treated differently when used, and technical indicators can not be blindly superstitious, technical indicators only record the changes in the past exchange rate, and the analysis of technical indicators is only one of the most important tools for the analysis of future exchange rate trends.

In the forex trading market, technical analysis indicators can be divided into three basic types:

The first is financial indicators. Mainly there are interest rates, currency ** volume, consumer and corporate debt, inflation rate, etc., which determine and affect the economic environment of the foreign exchange market trend, that is, the basic analysis indicators of foreign exchange trading introduced earlier.

The second is sentiment indicators. There are mainly sporadic trade sizes (indicating what the smallest investors are doing), selling ratios (indicating how many people are selling), bull and bear analyst indexes, etc. "Contrarian" investors often use sentiment indicators **most investors expect ** and then take the opposite action, the basic idea is that if everyone thinks ** will rise, there is a possibility that there will be no investor to push ** further up, that is, it is often said that "at the bottom, everyone is a bear; At the top, everyone is a cow.

The third is the trend indicator. There are mainly MACD indicators, RSI indicators, DMI indicators, etc., which judge the trend of the foreign exchange market through the mutual cooperation of **, trading volume and price volume. Momentum models are an evolutionary model derived from the moving average method.

The basic principle is exactly the same as that of the moving average method. It reflects the difference between two moving flats** or their ratios. In the upswing, the short-term average will be higher than the long-term flat, and the positive value of the difference momentum indicator will be greater than zero at this time; Conversely, in ****, the short-term flat ** is lower than the long-term flat**, and the difference is lower than the long-term flat**, and the difference momentum indicator will be negative.

The lower it is, the more negative the indicator becomes.

The most practical technical analysis in foreign exchange trading belongs to "trend analysis", as long as it is properly grasped, there is not much problem with profit, and there are many specific operations and uses, which are difficult to explain one by one. Let me give you a recent example to illustrate: This is the daily chart of the euro in recent months, and it is a good basis for making decisions if it falls below the rising slope to go short.

Technical analysis only analyzes three elements: **, **, and volume. The purpose of the analysis is to discover the fact that the ratio of long and short forces is stronger and weaker, so as to judge and verify the trend.

Only ** charts are needed to determine the trend: monthly, weekly, and daily. If it is a margin trade with leverage, you also need to analyze more micro charts, i.e. 1 minute, 15 minute, 30 minute and 60 minute charts, and nothing else!

1. The analysis of foreign exchange technology includes a wide range of contents, and the basic commonly used ones are: **chart shape, channel and trading range, trading psychology, etc.;

2. **Chart forms are commonly used: symmetrical triangle, descending triangle, ascending triangle, etc.;

3. Channels and trading intervals include: wedges, flags, etc.;

4. The trading psychology is to adjust the mentality of their own trading, because the foreign exchange market has a large volume, there is no bookmaker, and the operation will be unfavorable if you don't pay attention to it.

What are the tools for forex technical analysis? Hui Cha Cha believes that these three points are:

RSI is calculated by first adding up the amplitude of ** and the sum of ** amplitude of ** over a certain period of time, and then going to the ratio of the two, with values between 0 and 100. If the RSI is greater than or equal to 70, it indicates that the financial instrument is overbought (**** exceeds market expectations). If the RSI is less than or equal to 30, the financial product can be considered to be oversold (**** exceeds market expectations).

The activity range of the stochastic index is between 0-100%, reflecting overbought and oversold conditions. When it rises strongly, the price will close at the ** level. On the contrary, it will be biased to a low position when **.

The stochastic index is a graphical relationship composed of two curves of %k and %d to analyze and judge the trend of **, which mainly reflects the overbought and oversold phenomenon of the market; At the same time, the crossover of the two curves of %k and %d also gives a signal to ** and sell. Moreover, the "divergence" between the stochastic index and the pair can give useful trading signals.

The indicator consists of two dynamic trend lines that are plotted. The MACD line is the difference between the moving flat of the two indicators and the difference between the signal line or the trigger line, which is the smoothed moving flat of the difference. If the MACD intersects with the trigger line, it can be seen as a signal of a change in the market trend when doing forex technical analysis.

1. Fundamental analysis.

2. Technical analysis.

3. Model analysis.

1.Tangent analysis: This includes the method of drawing trend lines, dividing lines and other line segments, rays or geometric figures**.

Analyze future trends through specific patterns or combinations of specific patterns4Wave Theory Analysis: Elliott's invention of the technical analysis method with rise and fall as the core5

Gann Theory Analysis.

6.Linear regression or nonlinear regression theory.

7.Time Cycle Theory.

8.Stroll Stochastic Theory.

9.Entanglement. 10.Reverse theory ......

** Figure: Intelligent analysis system.