An intuitive reflection of the foreign exchange market on th
2023-06-20
The K-line is an intuitive reflection of the foreign exchange market. Studying the K-line’s changing rules plays an important role in providing reference for investors’ trading decisions. The shorter the K-line, the more variables there are. What I’m talking about here is Zhou K How lines are used in forex technical analysis.
As mentioned above, the K-lines of different periods have different shapes, and in many cases, they will show completely opposite trends due to the differences in the covered periods. In the actual foreign exchange technical analysis operation, to grasp the timing of foreign exchange trading, we must first analyze whether the weekly K-line is safe, and then analyze whether the combination of the daily K-line and the relationship between volume and price are reasonable, and finally we can choose the direction of operation at an appropriate time. Generally speaking, combining the two to guide practical operations can avoid many mistakes.
Foreign exchange investors should pay attention to the following issues when using the weekly K-line. When the weekly K-line continuously appears negative and oversold, after the combination of more than two weekly K-lines shows signs of stopping the decline, it generally indicates that there may be There will be a strong rebound or reversal in the market; in a continuous downward market, for the weekly K-line, it is not possible to consider whether to intervene until the long lower shadow line and the extremely shrinking trading volume appear at the same time. The timing of the operation should not be judged solely by the analysis of the daily K-line. In the rising market, if the weekly K-line shows a trend of increasing volume and price, there should be new highs in the next week. At this time, if there is a low point in the market at the beginning of the week, it is generally not necessary to consider selling according to the prompts of the daily K-line. Instead, it should be regarded as a better opportunity for short-term intervention and short-term buying should be considered; The longer upper shadow line and the significantly enlarged trading volume indicate that the market is about to enter an adjustment. At this time, it can usually be regarded as a signal to sell, and it should be out in time at the beginning of next week, rather than waiting until the daily K-line sends out a signal. Make a decision again; if the market shows signs of warming up after the fall, and there are reasons to believe that the rebound will not turn into a reversal, if there is a large bald Yang line with a large entity on the weekly K line, it should generally be seen In most cases, there will be one or two negative lines on the weekly K-line. Therefore, in this case, the big positive lines that appear on the K-line next week should also be treated as a sell signal.
The weekly K-line has a long time span, so investors can more easily see the trend direction of the foreign exchange market through the weekly K-line. When investors do foreign exchange technical analysis, the time period should also be from large to small. Find the direction in the cycle, and find the point in the small cycle.