KDJ index

KDJ is a very sensitive indicator in intraday trading, which fluctuates with the rise and fall of exchange rate at any time, but what must be distinguished here is that when looking at this indicator, strong currencies and weak currencies tend to be passivated at high and low positions.

If we use the KDJ indicator alone without paying attention to the passivation of the high and low positions, we will often miss the main rising wave of foreign exchange, or buy it prematurely when KDJ is called the low position indicator.

02

MACD indicator

MACD is mainly used to judge the long-term upward or downward trend of foreign exchange, but it has too much lag. When I use MACD to look at the rising or falling trend, I also mainly look at the currency in the process of rising or falling (DIF short-term -MACD long-term), as shown in the red and green column below.

When the exchange rate rises or falls for several days in a row, the longest red and green column suddenly appears, and the closing price is no longer a new high or a new low, these foreign currencies will have short-term high and low signals, and they can be sold or bought in batches on rallies or lows the next day.

03

RSI index

This is a relative strength index, which was created by WellsWider. It predicts the future direction of price change according to the change of exchange rate in a specific period. I often call it an overbought and oversold indicator. RSI greater than 50 is a strong market, and more than 80 enter the overbought area, which is easy to form a short-term retracement; Below 50 is a weak market, and below 20 enters the oversold area, which is easy to form a short-term rebound.

RSI was originally below 50 and then reversed upward to break through the 50 boundary, which means that the exchange rate is stronger; RSI was originally above 50, and then reversed below the 50 boundary, which means the exchange rate weakened. Generally speaking, there are two kinds of RSI: long-term RSI and short-term RSI. Short-term RSI is greater than long-term RSI, which is a bull market, and vice versa. When the short-term RSI is in the oversold area below 20 and crosses the long-term RSI from bottom to top, it is a buy signal. When the short-term RSI is in the overbought area above 80 and the long-term RSI crosses from top to bottom, it is a sell signal.

04

Average line

Average, short-term operation generally refers to the five-day, ten-day and twenty-day average. The five-day moving average wears the ten-day moving average and the ten-day moving average wears the twenty-day moving average, which is called the golden fork, which is a buying opportunity; On the contrary, it is called a dead fork, which is the time to sell. All three moving averages are arranged upward, which is called long arrangement, which is the performance of a strong currency. Five-day moving average, ten-day moving average and twenty-day moving average are all buying opportunities (note that it must be shrinking back).

05

Cotton boll index

BOLL is also the technical index of my favorite application. There are three lines here. Generally speaking, the currency is weak, the BOLL trend is downward, and the small column inside runs in the lower two lines. When crossing the outermost support line, it will form a short-term small rebound and fall back in the middle line.

On the contrary, the currency is strong and the Boolean line tends to go up. The inner column runs on the upper two lines, and the middle line is the support line. When you fall here, it will rise again, and when you see it on the line, it will fall back. If you don't talk about these things, you will constantly cross the "upper limit" and "lower limit". When the fluctuation of exchange rate is getting smaller and smaller, the "upper limit" and "lower limit" of Boolean line are getting closer and closer, which indicates that the trend will change.