? Price trend is a technical analysis of historical prices. This paper mainly discusses how to evaluate the price trend of foreign exchange and how to use the price trend to formulate different strategies. In this paper, the author analyzes the characteristics of; "> this step is often ignored, but as the old saying goes: if you don't know where you are, how do you know where you are going? Before entering the market, you should first understand the latest market situation; then, with the analysis of different time frames, you can determine whether the current market situation is really suitable for entering. Traders can choose different time frame to analyze according to their own position time. The figure below shows two time frames, and traders can add more as needed to see the general situation of the whole market.

trader type differentiation

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trend shock chart

  0, 0); "> once we see the market situation through a longer time frame, we can make clear which time frame is more suitable for analyzing the market. Step 2: find out the risk level and measure the opportunity; "> once you find out the relationship between the short-term K-line chart and the medium and long-term trading intervention points, and distinguish whether it is interval trading, trend trading or market breakthrough trading, then you can grasp the risk level more clearly. We should determine the potential profit size of the position, at least the profit is greater than the risk. If you are in the trend market, you can set the stop point below the previous low point. If the trend reverses, you can close your position and leave before you suffer more losses. A more radical approach would be to set the stop at a near-term low; a conservative approach would be to set the stop below the pre shock range.

trend adjustment chart

if you are in range trading, the stop should be below the support level; once you break through the range, you can also leave in time.

if it is a breakthrough transaction, risk management may be slightly complex, and the entry price triggered by a new high or low point is usually far from the support / resistance level. In addition to the "fake breakthroughs" that may occur frequently, traders should seek for greater risk returns, such as: 1:4 or 1:5. There are relatively few choice models of risk management in breakthrough transactions. It is more commonly used to set a stop in the previous shock range before the breakthrough is formed. In order to place an order for entry, if you plan to buy above the breakout resistance level, you can call the stop point to be set at a lower position in the early resistance level. In this way, if the breakthrough does not continue, the position will automatically close before the loss increases. But if the trend continues and keeps pushing the exchange rate higher, traders will be able to enjoy it and move the narrow stop up with the profits. It's also an interesting place to use price trends to manage positions for profit.