Foreign exchange margin calculation index
Moving average
explain
In the field of technical analysis, the moving average is an indispensable indicator tool. Is the moving average used statistically? Moving average? Based on the principle of daily moving average, a trend value is obtained as a tool to judge the price trend.
Moving averages can be divided into three types according to the length of time: short-term moving averages, medium-term moving averages and long-term moving averages. Generally, the short-term moving average takes 5 days or 10 days as the calculation period; The medium-term moving average is mostly calculated in 30 days and 60 days; Most of the long-term moving averages take 120 days (semi-annual line) and 250 days (annual line) as the calculation period.
First, the average buying time:
The average line gradually leveled off from the decline, and when the price broke through the average line from below, it was a buying signal.
Although the price falls below the average, the average is rising, and when the price returns to the average soon, it is a buy signal.
The price line is above the average. Although the price has fallen, it has not fallen below the average. You can buy more when the price goes up again.
The price line fell below the average and suddenly plummeted. When it is far from the average, it is very likely to tend to the average again, which is a buying opportunity.
Two. Average selling time:
The average line has gradually leveled off from the rise. When the price falls below the average line from the top of the average line, it should be a selling signal.
When the price rises above the average, but immediately returns below the average, the average continues to fall, and it is time to sell.
The price line is below the average, and the price rises but is below the average, which is an opportunity to sell.
The price line is on the rise, and above the average, it suddenly soars, away from the average, and it is likely to tend to the average again. This is the time to sell.
MACD- smma
explain
MACD is a technical tool developed according to the advantages of EMA. MACD absorbs the advantages of EMA. Using the moving average to judge the timing of buying and selling is very effective when the trend is obvious, but if there is a consolidation market, the signal will be frequent and inaccurate. According to the principle of moving average, MACD can remove the false signal defects that often appear in moving average and ensure the maximum success of moving average.
App application
MACD Golden Fork: DIF breaks through DEM from bottom to top, which is a buy signal.
MACD dead fork: DIF breaks through DEM from top to bottom, which is a sell signal.
MACD green to red: MACD value turns from negative to positive, and the market turns from short to long.
MACD turns from red to green: MACD value turns from positive to negative, and the market turns from bull to bear.
Use skills
DIFF and DEA are both positive values, that is, above the zero axis, the megatrend belongs to a bull market, and DIFF breaks through DEA upwards and can be bought.
DIFF and DEA are both negative numbers, that is, below the zero axis, the megatrend belongs to a short market, and DIFF falls below DEA and can be sold.
When the trend of DEA line deviates from the trend of K line, it is a reverse signal.
DEA has a high error rate in the game, but if it cooperates with RSI and KD, it can make up for the deficiency appropriately.
Analysis of MACD column chart shows that when it changes from positive to negative, it often indicates selling, on the contrary, it often indicates buying signal.
Parameter description
DIF parameter-default value: 9 fast EMA parameter-default value: 12 slow EMA parameter-default value: 26.
RSI- relative strength index
explain
RSI theory holds that in a normal stock market, the stock price can only be stable if the power of both long and short sides is balanced. According to the theory of normal distribution, the probability of random variables appearing near the central value is the greatest, and the farther away from the central value, the smaller the probability. In the long-term development of the stock market, the relative strength index changes between 30 and 70 most of the time, of which 40 and 60 have the most chances, and the chances of exceeding 80 or below 20 are less. The smallest probability is higher than 90 and lower than 10. Therefore, RSI is suitable for short-term operation of technical analysis and widely used in stock measurement and analysis.
App application
RSI Golden Fork: When RSI breaks through the RSI of 12 from bottom to top on the 6th, it will be the buying opportunity.
RSI dead fork: On the 6th, when the RSI fell below the RSI of 12 from top to bottom, the selling opportunity.
RSI & lt20, oversold, if there is a W bottom pattern, buy opportunities.
RSI & gt50, the market outlook is bullish; RSI & lt50, the market outlook is bearish.
RSI & gt80 is overbought. If there is an M-head pattern, it is a selling opportunity.
Use skills
When consolidating, RSI is higher than the bottom, indicating that the bulls are strong and the market outlook may rise for a while. Conversely, if the bottom is lower than the bottom, it is a sell signal.
If the exchange rate is still in the consolidation stage and RSI has been sorted out, the price will break through the sorting area.
The accuracy of RSI above 50 is high.
When RSI deviates from the exchange rate, it is generally a signal to turn around. It represents a reversal of the general trend. At this time, it is necessary to choose the right trading opportunity. Determine the trading opportunity by combining the fast and slow RSI lines: combining the 6th RSI and12nd RSI, when the 6th RSI line breaks through12nd RSI, it is a buy signal; When the RSI line falls below the RSI 12 on the 6th, it is a sell signal. Especially when RSI is below the low 30, the buy signal and sell signal above the high 70 are extremely reliable.
When the back pressure line (downward trend line) of RSI diagram shows 15 degrees to 30 degrees, it has the most back pressure significance. If the back pressure line angle is too steep, it will soon break and lose the meaning of back pressure. On the contrary, when the support line (upward trend line) of RSI chart is negative 15 degrees to negative 30 degrees, it has the most supporting significance. If the angle of the support line is too steep, it is easy to break and lose its support significance.
Advantages and disadvantages of relative strength index
RSI reflects four factors of exchange rate changes: the days of rising, the days of falling, the range of rising and the range of falling. It considers all four elements of exchange rate, so the accuracy of its price forecast is more credible.
Parameter description
RSI parameter-default value: 6RSI parameter 2- default value: 12.
Bohr-Bollinger Band
explain
Bollinger Bands use the standard deviation of statistical principles to calculate their confidence intervals. Compared with the envelope, the index can adjust its variability randomly, and the range of upper and lower limits is not fixed, but changes with the change of stock price.
App application
The exchange rate crosses the support line and buys the signal.
The exchange rate crosses the resistance line and sells the signal.
Skills of cotton boll use
BOLL closing: the track converges from wide to narrow, indicating that the market is about to break through (both rising and falling are possible) and should be vigilant.
The closing price fell below the lower rail: indicating strong support and the possibility of rebound. You can consider buying in the corresponding lower rail.
The closing price has risen above the upper rail: it shows that the pressure is strong and there is a possibility of rebound, which can be thrown below the corresponding upper rail.
The closing price rises above the middle rail: at this time, once the middle rail feels the pressure and weakens, the middle rail is in the pressure zone and sells the signal.
The closing price falls below the middle rail: at this time, once the middle rail is supported and stabilized, the middle rail is also a support belt and a buying signal.
Parameter description
BOLL line days parameter-default value: 20; Set the width of bell band, the default value is 2.
Fibonacci callback line
explain
Fibonacci callback line is a special tool in the foreign exchange market, and it is also a common tool in the foreign exchange market. Using Fibonacci callback line, we can effectively know the callback support and rebound resistance of exchange rate.
use
Click the Fibonacci callback key in MT4 above.
Click and hold the mouse pointer at the starting point to find the nearest highest and lowest points. The upward trend starts from a low point and the downward trend starts from a high point.
Click and drag to the end, the upward trend, the end point should be a high point, the downward trend, and the end point should be an important low point.
Skills of using Fibonacci callback line
38.2%, 50.0%, and 6 1.8% are the most commonly used golden section turning-back positions. 38.2% is generally considered as the least effective level, which means that it is unlikely that the exchange rate will rebound (correct) immediately after reaching this level. The higher the percentage level close to the exchange rate (that is, 6 1.8%), the greater the chance of its rebound (callback).
There may be some friends who like to use other things, such as KDJ indicators, and I will list them for you later. In addition, Anne FXCM needs to remind everyone that in the analysis and trading of the stock market, foreign exchange market or futures market, technical indicators can only be used as a reference and must not be used as the basis for placing orders. After all, the market is unpredictable and will be affected by some economic indicators. Technical indicators always have their defects. I hope traders will not blindly follow them.
Foreign exchange margin trading tips
First, greedy people are useless. Foreign exchange margin is completely different from the stock market, and the operation should be safe, short, flat and fast. The profit of the foreign exchange market mainly comes from the economic fluctuations of various countries. Generally speaking, there is not much economic turmoil, and the foreign exchange market will not change greatly. If it deviates slightly from the track, various state agencies and world organizations will intervene greatly. Therefore, in the case of 1 ~ 2% profit, it is appropriate for investors to quit quickly.
Second, sell high and buy low. It is undoubtedly profitable to find a national currency with close trade relations and stable domestic politics. The currencies of countries with close trade relations have a tacit understanding of maintaining stable ties. When the currency of country B falls below the most common price, it will be rich in income within half a year.
Third, the speed is orderly. There are different operating rules for buying and selling different currencies. Sensitive currencies have a large profit margin, but they are also prone to rapid decline. When the wind blows, the sky changes greatly. Therefore, it is necessary to buy and sell quickly in operation, and it is not easy to leave insurance for a long time. The most obvious currency is the yen. Some non-sensitive currencies, such as euro, dollar and Australian dollar, cannot easily exceed 250 points without earth-shattering conditions. More than 250 points will rebound. Buy an application software at home to draw a chart, and the buying and selling decision will be clear at a glance.
Fourth, learn to rest. To make comprehensive investment in foreign exchange protection, you should learn to rest. Anyone who stares at the market for a long time will be tired. When you are tired, you can easily make mistakes in the transaction. After trading for a period of time, you should learn to leave trading, relax yourself and have a good rest before trading.
5. Independent transactions. There are different opinions on the foreign exchange margin market. If you want to do foreign exchange trading by yourself, you must be able to ignore these voices and get into the habit of independent analysis.