How to Identify the Evening Star in Forex Trading Steps

After the liberalization of the RMB exchange rate system, more individual investors have noticed the investment opportunities brought by exchange rate fluctuations, so the promotion targets of Forex wealth management products have also been greatly broadened. Based on experience in overseas markets, in countries and regions where currencies are freely convertible, the risk is relatively high if all assets are held in the form of a single currency. Although the RMB exchange rate is promising in the long term, short-term fluctuations must be guarded against.

Several points to note when opening an account:

1. In terms of fund security, you must choose a regulated platform, preferably one that is supervised by multiple countries. Otherwise, it will mostly be a dealing-desk platform or a unlicensed platform.

2. Transaction costs should be as low as possible (of course, lower is not the better, it should be within a reasonable range).

3. The stability of the platform should be good, and the market and transaction speed should be responded to in a timely manner without slippage.

4. The service is good, the account opening process is simple and convenient, and deposits and withdrawals are convenient and instant.

Trading is the core of making money in the financial securities market. It is actually a science. Most of our investors are actually just trading with their own feelings and do not understand the real trading technology.

In Forex trading, investors pay more attention to the cross star or other indicators, but lack proper understanding of the evening star. This is mainly because the analysis of the evening star is relatively complicated.

(1) The evening star is a form that determines top reversal, so the evening star candlestick combination is only effective when it appears in an upward trend. However, there are exceptions. If the upper level encounters huge resistance during horizontal consolidation, the evening star candlestick combination is also a valid signal.

(2) There must be a price gap between the second star line of the evening star and the first candle line.

(3) The real body of the first candle line of the Evening Star cannot overlap with the real body of the second candle line.

(4) The candle line color (black and white) of the second star line is not limited. The same is true if there are multiple star lines, and the color is not limited.

(5) In principle, the second star line should be relatively smaller.

(6) For the evening star, its second star line does not necessarily create a new price peak.

(7) The third candle line of the evening star does not need to be a negative line, but the prerequisite is that the third candle line must have a relatively large gap.