False Breakouts in the Forex Market and Short-Term Chart-Reading Skills

As a market in which global traders participate, the Forex market has more complicated trends and many deceptive lines. How to hold one's position during a trend is a headache. The emergence of deceptive lines always reminds me of Sun Tzu's Art of War: "A soldier has tricks, so he can show his inability to use it, show him not using it when he is close, show his distance when he is close, and show his nearness when he is far."

Everyone knows that following the trend is a truth, but it is actually very difficult to do it. Deceptive lines will make you mistakenly think that the trend is turning. When you change your view, the market will turn around and leave you. Therefore, if you look at the trend correctly, you will often fail to make money. Nowadays, such deceptive lines are everywhere in the Forex market. Such deceptive lines will not only cause you to lose your position, but also get slapped in the face for doing it backhand. For transactions with little profit, in this kind of market, profits often turn into big losses or even losses.

Although this kind of deceptive line appears frequently, proper handling can minimize the loss. The first thing to be alert is that after a loss, you cannot make a backhand immediately, but you should observe it for a period of time before making a decision, and identify the deceptive line as soon as possible, because the amplitude of the deceptive line is generally limited, and the duration is not long, so you must calmly observe after the loss, otherwise you will fall into the embarrassing situation of being slapped left and right. Another point is to enlarge the trading cycle. The larger the cycle, the less deceptive lines, but in the final analysis, you must observe more in actual combat and summarize more experiences and lessons.

For many investors who like short-term operations, market reading skills are very important. They can analyze the main trends from the changes in market openings, and then decide their own operation methods. Sometimes it is very dangerous to increase the volume. At this time, you should pay attention to the increase in trading volume. The current average price line, if the average price line is downward, you cannot buy, which means that it is a fake purchase and a heavy volume in the case of real selling. When the stock price drops to a certain level, if you find that the selling is increasing but the price does not fall with the selling, you can buy at this time.

Pay attention to another issue related to trading volume during the day. Generally, retail investors have very little trading volume. Most of the three-digit or four-digit buying and selling orders are placed by institutions. Institutions sometimes do not use round numbers to buy, whether it is medium or long-term or short-term. If you find a sudden large amount, especially at a high level, you have to be vigilant and judge whether it has reached the top. If it is a large amount at the bottom, there is no need to worry.