Foreign exchange novice learning: what are the practical foreign exchange technology analysis tools?

? Which market is applicable to different indicators? Many novice investors are not very clear. This paper introduces the main commonly used technical indicators:

        relative strength index CFDs (RSI)

nbsp;     The calculation method of RSI is to accumulate the sum of the rising price range and the falling price range in a certain period of time, and then the ratio of the two is between 0-100. If the RSI is greater than or equal to 70, it indicates that the financial products are overbought (the price rise exceeds the market expectation). If the RSI is less than or equal to 30, it can be considered that the financial products are oversold (the price drop exceeds the market expectation). The activity range of

        random index CFDs (Stochastic Oscillator)

        random index CFDs is 0-100%, reflecting overbought / oversold situation. In a strong rise, the closing price will be higher than the closing price. On the contrary, when it falls, it will be lower. Random index CFDs analyze and judge the price trend by using the graph relationship composed of% K and% d curves, which mainly reflects the overbought / oversold phenomenon of the market; meanwhile, the intersection of% K and% d curves also gives the signals of buying and selling. Moreover, the "divergence" between index CFDs and exchange rate can give useful trading signals.


this indicator includes two dynamic trend lines drawn. MACD line is the difference between the moving average line of two indicators and the difference between the signal line or trigger line. It is the smooth moving average line of the difference. If MACD and trigger line intersect, it can be regarded as a signal of market trend change when making foreign exchange technical analysis.

number theory

Fibonacci Numbers: Fibonacci numbers (1, 1, 2, 3, 5, 8, 13, 21, 34 )The construction structure of the order of middle numbers is to get the third number by adding the first two numbers. The ratio of any number to the next larger number is 62%, which is the famous Fibonacci callback number. The inverse of 62% and 38% are also considered Fibonacci callbacks. Based on the relationship between price trend and time, this method is called time / price equivalence method. Gann's method is not easy to explain, but its essence is that he uses the angle in the chart to get the support level and resistance level and predict the time when the futures trend changes. He also uses the lines in the chart to predict support and resistance levels.


Elliott Wave Theory: Elliott wave theory is a market analysis method based on repeated wave patterns and Fibonacci series. The ideal Elliott wave model has three down waves following five up waves. The


window is a price range where there is no transaction on the graph. When the lowest price of a trading day is higher than the highest price of the previous day, an up gap will be formed; when the highest price of the current day is lower than the lowest price of the previous day, a down gap will be formed. The up window usually indicates a strong market, while the down window indicates a weak market. Breakthrough gap is a price window formed after the completion of an important price model, which usually marks the beginning of an important price trend. Runaway gap is a price window that usually appears in the middle of an important market trend. Therefore, it is also called measuring gap. The consumption gap is a price window appearing at the end of an important trend, which marks the end of the trend. The trend is the trend of price rising and falling. When market prices continue to create new highs, it is regarded as an upward trend; and the continuous new lows are regarded as a downward trend. A break in a trend line usually marks the end or reversal of a trend. The peak and valley values of the levels represent the price range of the market.