1. Technical indicators are tools and helpers for investors

With the advancement of science and technology and the popularization of computers, technical indicators are becoming more and more important in the analysis of the modern foreign exchange market. location. As an analysis tool, technical indicators are becoming more and more powerful as people pay more attention to them. How to look at it scientifically and use technical indicators reasonably to help us make money in the market has become an important issue that cannot be ignored.

In many trading platforms, a large number of technical indicator tools are provided. Common technical indicator tools include: simple MA (moving average); MACD; RSI; BOLL; KDJ, etc.

The original intention of these technical indicators is to help investors discover the movement patterns of financial markets. In actual operation, these technical indicators also play such a role. For example: MA can help investors discover the average cost of the market, the intersection of a group of MAs can provide basic buying and selling signals, and multiple MAs can reveal the operating status of the market, etc.

Therefore, technical indicators can play a very important role in helping investors discover the movement patterns of financial markets, which greatly reduces the cost of investors studying market patterns and is a very useful tool. and helpers.

But tools are just tools, and the best way to use them lies in your heart. How to use, how to use them well, and how to make money with these tools is actually determined by the investor's own research level. For investors who have mastered the use of technical indicators, they are angels. For investors who have not yet mastered the use of technical indicators, being too superstitious about technical indicators will make them bear undue charges.

2. Technical indicators can help investors make money

Take MACD as an example. MACD (average smoothed convergence and divergence indicator) is a trend-following technical indicator. Although its reflection There is some lag, but it is the most commonly used one in actual applications

. No matter from the design idea of ??the indicator or the specific practical application, it can well track the trend of price development; RSI (relative strength index) is mainly a technical indicator that is considered from the kinetic energy of price operation

indicator, it mainly observes the power and energy displayed by the price in the trend, and expresses it in the form of numerical values; KDJ (stochastic indicator) is a technical indicator that measures space potential energy, and it can give us information about

Guidance on the gap between price trends in the future.

For investors who like to trade on trends, MACD is a very useful trend tracking tool. For investors who like to do short-term trading, RSI and KDJ are good timing signal tools.

3. How to use simple technical indicators to make money

In the selection and application of technical indicators, we must adhere to the principle of equal emphasis on practicality and simplicity, and at the same time, through the combination of different indicators. Exploit strengths and avoid weaknesses.

No indicator is perfect, and there will inevitably be flaws and deficiencies in the indicator itself! Such as the passivation of indicators (RSI; KDJ); the lag of indicators (MA; MACD) and so on.

If you don’t know the advantages and disadvantages of the indicator itself in specific application, you will often be led by the indicator - technical analysis is a double-edged sword! Therefore, we can By using a combination of different indicators to maximize strengths and avoid weaknesses.

In specific applications, we recommend two combinations: one is to use trend tracking indicators and kinetic energy indicators together (MACD+RSI) in order to better grasp the trend; It is a combination of moving average and space potential energy (MA+KDJ), in order to predict the future rise or fall of prices.

Remember, only by combining indicators and applying them can we effectively resolve and disperse various "bad symptoms" that may occur due to the shortcomings of the indicators themselves in specific operations. This is what we must pay attention to when applying technical indicators to guide us in actual combat, because it is impossible for any technical indicator to completely interpret this market and fully understand this market. So what we need is combination and three-dimensional application.

Almost everyone uses technical indicators, but everyone uses them differently. Therefore, the most important thing is to constantly explore and summarize in practice to find the method that best plays the role of indicators. When technical indicators help us discover some of the laws of market movement and prompt specific buying and selling opportunities and prices, the mission of technical indicators to help investors make money is completed.