Investing is unpredictable.
In view of this situation, like the stock market, choosing short-term trading can reduce its losses to a certain extent.
Today, I’m going to introduce you to short term techniques.
1. Short-term foreign exchange should be carefully studied from the three aspects of “trading volume, turnover rate and trend line”.
Short-term rapid rise to more than 30%, especially doubled, volume surge, turnover rate continues to exceed 15%, volume growth and price lag, and down to 5-10 days average, should be prepared for strategic reduction.
2. In the process of short-term foreign exchange trading, we should be alert to the fraud breakthrough of the main force.
Typically, these currencies change hands heavily ahead of early resistance levels, but stop, indicating that major funds are distributing chips indiscriminately.
If they are not able to continue in late stages, the holder must leave decisively, beware of the main force creating many traps.
In this currency, short-term investors are wary of getting caught.
3. During the rally after the long decline in foreign exchange prices, many currencies rebounded to the upward track of the long downward trend, which indicates that the long trend line is under considerable pressure.
At the same time, it suggests that the main players in this type of forex trade are not determined to be long. They should sell at the band, wait for the exchange rate to fall back to the lower track, and then buy back.
Generally speaking, the 30, 60, half-year (120) and annual (250) lines have relatively large counter-containment efforts, which may become the stage top.
If these resistance levels are effectively breached, one should go long.
4. When your daily chart suddenly shows a large overcast line from top to bottom and falls into an important plateau, you should exit with or without a bounce, a miss, or a cross.
Avalanches of foreign exchange are no surprise whenever they occur.
5. Among the various real-time market charts, the five-minute chart, the 15-minute chart, and the half-hour chart provide the highest reference value.
The half-hour chart/hourly chart signal indicates the main direction of the position for the day, and the 15-minute chart signal can be used as a reference for entering and exiting the market.
Not only can the five-minute chart signal remind you to get ready as soon as possible, but it can also be used as an exit reference when you take a position against the market.
As for the one minute chart, it is only suitable for extreme speculators to use for ultra-short term market speculation.
The dollar tumbled and oil prices rose to a four-week high as the emergency authorisation of COVID-19 oral drugs returned risk taking sentiment.
Please pay attention to the specific operation, the market is changing rapidly, investment needs to be cautious, the operation strategy is for reference only.
