How to find the accurate support level and resistance level in foreign exchange trading
In order to find more accurate support and resistance levels, we must start with the medium and long-term trend chart. (1) Find the transaction intensive area, that is, the consolidation interval. The liquidity of the foreign exchange trading market is inversely proportional to the difficulty of market operation and the difficulty of value judgment. The easier and denser the transaction, the higher the market liquidity, and the more difficult it is to judge the value. On the contrary, the harder and rarer the transaction, the lower the market liquidity and the easier the value judgment. (2) Find the head or bottom of the early stage. The head (bottom) of the forex trading market in the early stage is the resistance level (support level) of this round of rebound (callback). The importance of resistance level (support level) is directly proportional to the time and price level required for this round of rebound (callback). (3) Find the symmetry relationship. The market did not encounter any obstacles (support) in the early stage of rising (falling), and conversely, it will certainly not encounter support (support) when falling (rising). Moreover, the exchange rate of foreign exchange transactions will run for several days in the process of rising (falling) in the early stage and for several days in the process of falling (rising). (4) Seek the golden section. Choose the high and low points of a trend to do the golden section, and the support level (resistance level) is near the golden section (the accuracy of the golden section in the futures market is higher than that in the foreign exchange market). There are other ways to find and judge the support level and resistance level of foreign exchange transactions. No matter which way you judge, you always advocate trading in line with market trends. Recommended reading: investment guru-Wells Wilde 20 12 The impact of the London Olympic Games on the British economy is explained in detail. The short-term skills of the average trend indicator (ADX) and the essence of the short-term ATR-the real fluctuation range, the road to success of the average investment guru, the ten misunderstandings of foreign exchange margin trading, and the entry of speculators into the market.