The golden section is a calculation method in mathematics, which originated in Gu Xi. The golden ratio of your body is the ratio of your body to your face. But the golden section has a different meaning in foreign exchange. It is a very common technical analysis method in modern financial foreign exchange transactions, and it is also a method often used in this website. Every trading platform has the function of golden section. For example, we can always refer to the specific introduction of the golden section in ECN trade. You can also log on to the foreign exchange trading platform (.ecntrade.com/).

In the technical analysis of foreign exchange, there is also an important school of analysis-the golden section is used in wave theory. Here, we only explain how to get the golden section line, and proceed with the next foreign exchange trading operation according to its guidance.

The first step in drawing the golden section is to remember some special numbers:

0. 19 1 0.382 0.6 18 0.809

1. 19 1 1.382 1.6 18 1.809

2.6 18 4.236

Among these figures, 0.382, 0.6 18, 1.382, 1.6 18 are the most important, and the exchange rate is likely to generate support and pressure at the golden section generated by these four figures.

Step two, find a point. This point is the highest point at the end of the rising market, or the lowest point at the end of the falling market. Of course, we know that high and low here refer to a certain range and are local. As long as it can be confirmed that a trend (whether up or down) has ended or temporarily ended, the turning point of this trend can be used as the golden section point. Once this point is selected, we can draw the golden section line.

When the rising market starts to turn down, we are extremely concerned about where this decline will be supported. The golden section provides the following price points, which are multiplied by the top value of this rise and then multiplied by several special figures listed above. Assuming that the peak of this rise is 10 yuan, then

8.09= 10×0.809

6. 18= 10×0.6 18

3.82= 10×0.382

1.9 1= 10×0. 19 1

These values are very likely to be supported, of which 6. 18 and 3.82 are the most likely.

In the same way, when the falling market starts to turn around, we are concerned about where the rising market will be under pressure. The position provided by the golden section is the reserve price of this decline multiplied by the special figure above. Assuming that the price of Luogu is 10 yuan, then

1 1.9 1= 10× 1. 19 1 20= 10×2

13.82= 10× 1.382 26. 18= 10×2.6 18

16. 18= 10× 1.6 18 42.36= 10×4.236

18.09= 10× 1.809

It is likely to become the pressure level in the future. Among them, 13.82, 16. 18 and 20 are the easiest pressure lines, and those exceeding 20 are rarely used.