. This type of analysis focuses on the composition of charts and formulas to capture major and minor trends and identify buy / sell opportunities by estimating the length of the market cycle. Depending on the time span you choose, you can use either intraday (every 5 minutes, every 15 minutes, every hour) or weekly or monthly technical analysis. The content of foreign exchange technical analysis:
(1) find the trend about technical analysis, you may first hear the following maxim: & quot; the trend is your friend & quot;. Finding a dominant trend will help you see the market as a whole and give you more insight - especially when shorter term market volatility disrupts the market as a whole. Weekly and monthly chart analysis is best used to identify longer-term trends. Once you find the overall trend, you can choose the trend in the time span you want to trade. In this way, you can buy and sell in the up trend. The level of support and resistance is the point in the chart that experiences continuous upward or downward pressure. The support level is usually the lowest point in all chart modes (hourly, weekly or yearly), while the resistance level is the highest point (peak point) in the chart. When these points show a recurring trend, they are identified as supports and resistances. The best time to buy / sell is near the unbreakable level of support / resistance. Once these levels are broken, they tend to become reverse obstacles. Therefore, in the rising market, the broken resistance level may become the support for the upward trend; however, in the falling market, once the support level is broken, it will become resistance. The trend line is a simple and practical tool to identify the market trend direction. The upward straight line is formed by connecting at least two consecutive low points. Naturally, the second point must be higher than the first. The extension of the straight line helps to judge the path that the market will follow. Upward trend is a specific method for identifying support lines / levels. In contrast, the downward line is drawn by connecting two or more points. To some extent, the variability of transaction lines is related to the number of connection points. However, it is worth mentioning that each point does not need to be too close. The channel is defined as an up trend line parallel to the corresponding down trend line. Two lines can represent corridors with prices up, down or horizontal. The common properties of channels that support trendline connection points should be between the two connection points of their reverse lines. If you believe that the trend of & quot; in technical analysis is your friend & quot;, you will benefit greatly from the moving average. The moving average shows the average price at a specific time in a specific cycle. They are called & quot; moves & quot; because they are measured at the same time and reflect the latest average. One of the shortcomings of mobile averages is that they lag behind the market, so they are not necessarily a sign of trend change. To solve this problem, the use of a shorter moving average of 5 or 10 days will better reflect recent price trends than a moving average of 40 or 200 days. alternatively, the moving average can also be used by combining two different time span averages. Whether using a moving average of 5 and 20 days, or a moving average of 40 and 200 days, buying signals are usually detected when the shorter term average goes up through the longer term average. In contrast, sell signals are prompted when the shorter term average goes down through the longer term average. There are three kinds of moving average: simple arithmetic moving average; linear weighted moving average; and square coefficient weighted average. The last is the preferred method because it gives more weight to recent data and considers data throughout the life of the financial instrument.