First, we must distinguish between the current market is mostly empty, the method is very simple, like to use MA, MA only above, MA only short; I usually use the fractal, four fractal established direction. With other indicators, the key is simple, smooth.
Long and short foreign exchange to determine the seven elements
For daily foreign exchange market, in front of traders will always be the long and short trend of the day, if a comprehensive and scientific study to determine the long and short market, summed up from the following seven aspects.
1, the first three days of the K line trend. K-line trend of the previous three days to determine the approximate rise or decline, or the dispute period.
2, then a major political or economic event. Political events can not happen often, but once this happens, the market will inevitably be dominated by them and do not have other illusions. Economic events are mostly concerned with the publication of the results of important economic data and the adjustment of monetary policies of major central banks.
3, the hardness of the disk. Hard and soft disk surface simply means buying active, or selling active. For example, if the market is consolidating in a range, all of a sudden the frequency of the purchase price changes will be faster but the selling price will change the same as before. This shows that the buying has started to be active, the market tends to look more into the market and the price will soon rise. Conversely, if the market is consolidating in a range, but suddenly the selling price changes faster, but the frequency of change is the same as before, indicating that the selling has begun to take an active, the market tends to be bearish on the market outlook, the price will soon Will fall.
4, the market atmosphere and market sentiment. The general market hot spots will lead to a certain market atmosphere, and market sentiment can be obtained from the major media comments, both of which have a huge psychological impact on investors and often can greatly affect the market trend.
5, the trend of related species and its impact. The associated varieties are gold, oil, and other currencies and so on.
6, the impact of the relevant markets, such as the stock market, bond market. In general, the U.S. stock market supports the U.S. dollar if the index goes up after it opens; similarly, the European stock market plays a similar role. In the bond market, generally speaking, the 10-year bond yield trend can reflect the long-term economic expectations of a country. The fluctuation of its yield will indirectly affect the exchange rate market.
7, arbitrage and hedging transactions. Such transactions generally occur between low-interest currencies and high-interest currencies, the yen is generally the most active variety of arbitrage and hedging transactions, and this type of transaction, there is currently no way to find a specific transaction Information, through the United States / Japan, Europe / Japan and other direct and cross, the overall impact on the foreign exchange market, which is why we often say that the yen is difficult to grasp one of the reasons.
The above seven factors do not necessarily exist and occur every day. According to the specific situation of the day, we divide the proportion of judgments reasonably and carry out analytical studies consistently. , Make your prediction and grasp of the market more accurately.