Short-Term Forex Technical Indicators and Position-Adding Techniques
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For short-term operations, you must choose Forex with high volume, and you should pay special attention to Forex with high volume at the bottom.Graphics, short-term operations, in addition to attaching great importance to trading volume, you should also pay attention to changes in graphics. There are several graphics that deserve great attention: W bottom, head and shoulders bottom, arc bottom, platform, ascending channel, etc. When W bottom, head and shoulders bottom, arc bottom breaks through the neckline with heavy volume, it should be a buying opportunity. Here are two points that must be paid attention to Note that first, a breakthrough with large volume is required to be an effective breakthrough. A breakthrough without trading volume is a false breakthrough, and the exchange rate will often quickly return to the starting level. Second, breakthroughs at low prices are more reliable. Breakthroughs with high volumes are likely to be a "bully trap" created by market makers to induce retail investors to follow suit, thereby achieving the purpose of shipments.Many times, when breaking through the neckline, there is often a retracement confirmation. This can also be used as a good opportunity to build a position. The exchange rate platform is consolidating and the volatility is getting smaller and smaller. Especially when the low level closes several crosses or several small positive lines, the exchange rate will often choose to break upward. For Forex that adopts an ascending channel, you can buy when the exchange rate touches the lower track, especially when the lower track is the 10-day or 20-day moving average, and sell when the exchange rate touches the upper track.Moving averages and short-term operations generally refer to the three moving averages of the 5th, 10th, and 20th days. If the 5-day moving average crosses the 10-day, 20-day moving average, and the 10-day moving average crosses the 20-day moving average, it is called a golden cross, which is a buying opportunity. Otherwise, it is called a dead cross, which is a selling opportunity.The essence of adding positions, first of all, it must be clear that adding positions is an investment technique, a tool, not a purpose. The purpose of investment is to obtain returns with less risk. Therefore, only when adding positions can help investors achieve the above purposes, it is valuable, otherwise it must be discarded. This is just like what the Diamond Sutra says, all laws are metaphors, and laws should be discarded, let alone illegal ones.The applicable objects for adding positions, in terms of analytical ability, must be at least investors who can make accurate judgments about the direction of the next week before they can use adding positions (this requires investors not only to look at charts, but also to pay attention to fundamentals, weather, policies, etc.), in terms of operating rhythm, Adding positions is suitable for investors who combine short and medium positions. In terms of capital volume, adding positions is suitable for larger funds. When 80% of the positions are available, there is no need to consider adding positions, or when the ratio of reserve funds to current funds reaches or exceeds 1: 1, the operation skills for adding positions are suitable.Before deciding to use this technique, you must be very familiar with the rules of the variety to be operated and your own mental changes at each stage of the variety, so as to know yourself and the enemy. To do this, the tracking of the variety must at least have a process of changing from rising to falling or from falling to rising.
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