The difficulty of speculating in foreign exchange is to distinguish whether the market is long, short or consolidating, and the other is to overcome the human weakness of adversity operations. For this reason, it is necessary to continuously accumulate experience and increase awareness, but also to diligently study the fundamentals and technical aspects. There is no shortcut.

How do foreign exchange charts look up and down

No matter what financial products we invest in, we must understand the market trends. Only by knowing the market can we make correct investment decisions and reap benefits. So, how do we judge market trends?

Next, take the analysis and judgment of foreign exchange trends as an example, to introduce you in detail
How do foreign exchange charts look up and down

The trend judgment of the foreign exchange market mainly depends on the speculators’ understanding of the foreign exchange market. We can analyze the trend judgment of the foreign exchange market from four aspects.

First, the cycle problem

Cycle issues are problems that exist in every market. For example, the interest cycle of the central bank has an important impact on the asset market. If investors master the interest cycle, there will be great opportunities for profit in the asset market.

There are also cycles in the foreign exchange market, and changes in US real interest rates are one of the main factors affecting the dollar cycle.

Second, the market itself is a tool for digesting expectations

For example, the market expects that after the US interest rate hike cycle has passed, a new cycle will begin. As for the development factors affecting the market, it will not be known until that time.

In the foreign exchange market, foreign exchange speculators generally regard sudden political events or the release of major financial data as a news speculation cycle. The top priority for foreign exchange speculators is to find cyclical changes and how to adopt the correct investment strategy during this cycle.

Third, the formation factors of foreign exchange market trends

In fact, the factors that form the trend of the foreign exchange market are the same. The only difference is the risk control and the timing of entering the market. If the foreign exchange speculators have a high margin leverage ratio, they must achieve a high accuracy rate when they first enter the market. Once they make a profit, they must Quickly identify medium and long-term trends.

Fourth, observe the foreign exchange market transaction chart

There are many ways to determine the trend, but the most basic is to observe the foreign exchange trading chart from a long-term perspective, judge according to the price trend, observe the characteristics of price changes and the factors affecting price changes, and those who master these foreign exchange can basically judge the foreign exchange trend. Up.

The only thing that can be determined about the trend of the foreign exchange market is uncertainty. Sometimes a small mistake can lead to all losses. Therefore, speculators must be careful, patient, and calm when judging the trend.

How to read the foreign exchange chart?

  1. Non-agricultural data:

Non-agricultural data refers to the three values ​​of non-agricultural employment, employment rate and unemployment rate. They are data indicators that reflect the employment status of the non-agricultural population in the United States, and are divided into previous values, expected values, and published values. It is generally released at 20:30 Beijing time (daylight saving time: April-October) and 21:30 (winter time: November-March) Beijing time on the first Friday of each month.

Since non-agricultural data will directly affect the dollar price, all financial products related to the dollar price will be affected. Take crude oil as an example: the published value on March 9, 2018 is 31.3, and the previous and predicted values ​​are both 20, that is, the published value>previous value and predicted value, indicating that the US economy is improving, the dollar is rising, and crude oil is falling. Conversely, if the published value of non-agricultural data <previous value and forecast value, then the US economy will deteriorate, the dollar will fall, and crude oil will rise.

Prices often fluctuate significantly before and after the release of non-agricultural data. It is a vital data indicator for analyzing market trends. Learning to analyze non-agricultural data is an essential skill for investors to make long-term profits.

  1. Direct data:
    It is also called directional data, such as the inventory quantity and sales volume data of the trading product, which will have a direct impact on the trading product. For example: there is a certain correlation between gold inventory and sales data. If the proportion of gold inventory sales declines, it means that inventory growth is less than sales growth, business is active, and gold prices are rising. Conversely, the increase in the proportion of gold inventory sales indicates that the inventory growth is greater than the sales growth, the business climate has been slow, and the price of gold has fallen.
  2. GDP data:
    Gross national product refers to the value of all final products and services produced in the economy of a country or region in a certain period (one quarter or one year). It is often recognized as the best indicator to measure the country’s economic conditions. The rise in GDP data indicates that the country’s economy is developing well, the currency exchange rate has become stronger, and prices have risen; GDP data has fallen, the country’s economic development has been slow, the currency exchange rate has weakened, and prices have fallen. In addition, changes in GDP data will also have an impact on other trading products.
  3. Look short-term

It is very necessary for novice traders to analyze the foreign exchange market from the 15-minute short-term chart. The 15-minute chart is more suitable for short-term trading. You only need to place an order through the price trend of the 15-minute chart. As long as beginners can grasp the law, they can see the short-term market trend. But pay attention: the 5-minute chart is more sensitive to the price of resistance and support points, and is suitable for grasping the timing of incoming orders and out orders. However, many methods of technical analysis are used on the 5-minute chart, and their reliability must be greatly discounted, because the characteristic of the 5-minute chart is only sensitive to resistance and support points, and its fluctuations are not helpful. The function of judging the trend. The resistance points found on the 5-minute chart are usually not strong.

  1. Trend judgment

Many traders are intuitive “slaves” and do not know it. It is recommended that beginners start with a four-hour chart in the formal trading analysis, focusing on trading trends and directions, and then combine the one-hour chart. This will enable you Learn more about how the trend changes over time, and then you can observe the trend change and direction of the next season from these changes. Beginners should focus on the transitional state in the middle so that you can have a deeper understanding of the foreign exchange market.

  1. Clever use of moving average

Sometimes, on the hourly chart, the moving average is in an upward trend, but on the 15-minute chart, it is on a downward trend, indicating that the price has an upward trend, but this trend cannot last for a long time, and there may be a turning point, showing a downward trend. At the same time, here, investors also need to understand the divergence of the moving average when analyzing the foreign exchange market. The shorter the time, the divergence of the moving average can reflect the market trend, and then they can trade according to the situation.