In the technical analysis of foreign exchange market, support points often appear. It uses the contrarian operating system CDP as a short-term analysis tool, which is very effective in analyzing and forecasting exchange rate changes.
Support point calculation method:
CDP determines the boundary of exchange rate according to the change of momentum field, and the so-called boundary refers to the support point of exchange rate.
The calculation method of CDP system is: CDP=(H+L+2×C)÷4.
Where: H is the highest price of the day, L is the lowest price of the day, and C is the closing price of the day.
Then calculate the following four values:
AH (the highest value is the strong pressure point) =CDP+PT.
NH (the second highest value is the weak pressure point) = 2× CDP-L.
AL (the lowest value is the strong support point) = CDP-Pt.
HL (the second lowest value is weak support point) = 2× CDP-h.
Where PT is the h-l of the previous trading day.
Extended data:
Judgment of support point and resistance point:
From the K-line, if there is a sunny line on the 1 hour and 4-hour daily lines, then the bottom, top and middle of the sunny line are all effective supports and can be used as a reference (the daily line is particularly important).
Trend judgment:
1. If a wave fluctuates for a long time, especially if the exchange rate is arranged sideways in an interval and walks out of a box interval, then the top of the box is more effective resistance and the bottom is stronger support. If you break any side, you will definitely go with the flow. The fluctuation is at least above the upper and lower range of the box. The longer the interval fluctuation is, the more effective the support and resistance are, and the more effective the above fluctuation law is.
2. There is another wave of rising (falling), and then the position is pulled up (falling) and then dropped (rising) several times, then this point basically forms the bottom (top), which is a more effective support and resistance point. This is widely used in foreign exchange, because foreign exchange is basically arranged in the interior of the community. After the breakthrough, the range is very large and the profit is quite high?
Baidu encyclopedia-support point