To do foreign exchange, you need to understand the technical
Technical and fundamental analysis are the two main aspects of field analysis. Because of their different focuses, the combination of the two can better guide the order transaction. Foreign exchange investment is the same as our usual stock futures investment. Investors not only need to master certain foreign exchange knowledge, but also learn to judge and analyze the factors that affect the trend of the target. We know that for any trading, the determinant of the price movement is in line with the basic economic law, that is, the price of foreign exchange is also determined by the relationship between supply and demand. Then, when we analyze, especially when we conduct fundamental analysis on the field, the main research is the influence of economic form, inflation, interest rate, unemployment rate, policy and policy on the supply of the field currency to judge the rise of the exchange rate. fall. There are also many relevant interpretations on these content networks. The author wants to focus on the other side today, that is, the technical analysis. I hope that by sharing some personal opinions, I will let everyone know what technical analysis knowledge is needed to understand foreign exchange. After understanding the fundamental analysis of foreign exchange, technical analysis can also be carried out.
For technical analysis, we all know the famous three technical analysis theories: Dow Theory, Wave Theory and Gann Theory. These three theories can be applied not only to stocks and futures, but also to foreign exchange. Because no matter what kind of field, we need to grasp the point of purchase or the selling point to complete a transaction. Among them, Dow Theory is about the trend. It is based on the study of the price model of the field to speculate on the future price changes. Trends can be divided into three types, namely, major trends, medium-term trends, and short-term trends. The change of trend, the reaction is the change of the field situation; the wave theory, the structure of the field operation, Eliot believes that no matter what kind of field, the rise or the fall, the field has to go through a cycle, are It takes several bands, which is simply the rise of the five waves and the fall of the three waves. As we usually say, twists and turns, when the field is running, is not a one-time process; Gann theory, focusing on time period analysis and price space analysis, the theoretical basis is the law of nature, that is, the operation of the field itself is already set It is also the basis for finding out how the current and future fields will proceed from history. Therefore, we can make predictions in advance through methods such as mathematics and geometry. Gann's theory also refers to the analysis of time to the analysis, opening up new research directions for investors.
These three theories are all good technical analysis theories, especially the wave theory and Gann theory, which are worthy of foreign exchange investors to learn, flexible use, will provide a better basis for foreign exchange operations. At the same time, Gann's theory is not only for the analysis of field prediction, it also contains a very complete operating system. Gann teaches investors not only how to predict the analysis field, but more importantly, teaches everyone how to operate. This is very commendable. Therefore, the author believes that Gann theory is the most complete set of theories in each theory. The technical analysis of foreign exchange is the same as stocks. I personally recommend investors to proceed from three aspects, namely, trend, price and time, which is our three-step analysis. Through the actual verification of many customers, we find that The analysis of these three aspects can well grasp the trend of the technical aspects of the foreign exchange market, and with the fundamentals, it can have a high success rate. Investors can learn from it.
So how should the trend, price and time be judged?
First, the trend. The difference between foreign exchange market and stock market is that foreign exchange can be short-selling. Therefore, in the trend, the judgment of stock trend is only concerned about whether it is in a strong area to be better. The interpretation of trends in the foreign exchange market is more about grasping the mainstream direction of the field. For example, we can determine the strength of the stock market through the extreme anti-channel. On the line, the trend is strong, and we can rest assured. For foreign exchange, we can focus on multiple orders on the line, and the weak areas under the line, be cautious and do more. Second, the price. Price analysis, we can analyze and determine the appropriate operating price after determining the actual. For this, we can use the Gann tools, such as Gann square, percentage, band percentage and other tools to determine the current and future field running space. last minute. Focus on important time points, and judge the important changes in the market by studying the short-term or historically important periods, and predict the trend reversal in combination with the price. The three-step analysis method is a common method used by the author and is only for reference. Any kind of financial investment requires a complete analysis by investors to minimize the risk.