The ability to analyze various technical indicators or trend indicators in the foreign exchange market is one of the necessary qualities for investors. But there are also many investors who can read charts, but they may not be able to analyze them rationally, which is one of the reasons why afternoon trading is not ideal. We will explain this problem according to the COT trend analysis method of foreign exchange margin.

Generally speaking, the cost control report is divided into two parts. The upper half of the price line shows the trend of dollar index futures. The lower part of the chart is a little more complicated. There are three lines: one is thick and flat, representing commercial positions, the other is thick and sharp, representing large non-commercial positions, and the other is thin and sharp, representing small non-commercial foreign exchange margin positions.

We will mainly focus on large non-commercial positions, because large non-commercial positions represent speculators with abundant funds, while small non-commercial positions are only small speculators with little market driving force. Therefore, we need to be clear about what foreign exchange margin analysis should focus on, which is a bit like the contract size in futures analysis. We should be clear about the main force to promote the market, so as not to do things that go against the market direction and cause losses to ourselves.