What does foreign exchange MACD index mean? How to use it? Detailed illustration of foreign exchange MACD index!
In foreign exchange trading, investors often use some technical indicators to objectively judge the market situation and entry opportunity. The correct use of technical indicators will help investors better analyze the market. So, what are the common indicators of foreign exchange trading?
1. MACD, this foreign exchange index is mainly used to judge the medium and long-term trend of foreign exchange transactions. The index will have a certain lag, but investors can use this lag to objectively judge the market situation. MACD double line shows that the market above 0 axis is appropriate, while the market is empty. The double line through axis 0 is the reference signal. In foreign exchange trading, the first cross signal after MACD double crossing is of reference significance.
2. KDJ, which is a very sensitive index. In exchange rate fluctuations, this indicator will send cross signals, but when the unilateral trend is strong and the single table trend is weak, it will be blunt to the trend side. If KDJ is used as an indicator alone, the skill of KDJ foreign exchange trading is to follow the trend signal of trading, so there is no need to worry about passivation and carry out the trade in accordance with the trend.
3. Moving average is one of the most common indicators in foreign exchange investment. The parameters of investors can be set as 30 moving average on 5, 10 and 20 days. When the 5-day moving average crosses the 10-day and 20-day moving average, and the 10-day moving average crosses the 20-day moving average, this phenomenon is called the golden cross of the moving average, which is the time for traders to buy; otherwise, it is called dead cross, which is the time for traders to sell. The moving average is also a sharp tool to judge the trend. When the moving average combination is arranged upward, it is called the long position arrangement, which is the performance of the long trend. On the contrary, it is the short trend.
4. Boll, boll line is a popular technical index for foreign exchange traders. Boll consists of three lines: upper track, middle track and down track. Generally speaking, the currency is weak and boll is down, while the K line is running in and around the lower track. When the exchange rate crosses the support line of the lowest track, it will form a short-term small rebound, and then it will fall back to the middle track line.
On the contrary, the currency is strong and the wiring is going up. The inner K-line extends between the middle rail and the upper rail. The support line of the middle rail returns to the middle rail, and the upper rail resistance increases. When the fluctuation of exchange rate becomes smaller and smaller, foreign exchange dealers will start a new round of market price.
5. RSI, the relative strength index, is one of the indicators commonly used by foreign exchange traders, which can be used to judge overbought and oversold. When the RSI is greater than 50, the real market is stronger; if it is higher than 80, it will enter the overbought area, and it is not suitable to chase more; if the RSI is less than 50, the market will be weak, and if it is lower than 20, it is not suitable to pursue short. If RSI is below 20 and then goes through upward, it can be regarded as a judgment signal of rebound; otherwise, if RSI is above 80, it can be regarded as a callback signal.
What do you mean by foreign exchange MACD index? How to use MACD index? Detailed illustration of foreign exchange MACD index! The above are the five indicators commonly used by foreign exchange traders, and for the specific use methods, traders need to practice and summarize their own trading. Indicators are dead, and people are alive. Finally, what the tutor wants to tell is that the market is ever-changing. Traders should summarize their own trading methods. Indicators can only be used as a reference standard.