How to see support and resistance in foreign exchange trading?
1、 What is support level and pressure level
In the K-line chart of foreign exchange investment stocks, the support level refers to the price that stops falling or even rising around a certain price when the price falls, and then stops falling and stabilizes.
On the contrary, the pressure level refers to the price rise, to a certain price around the end of the rise or even decline, and then reverse the price decline.
The essence of working pressure and supporting point is the harm of supply and demand in the sales market.
2、 How to judge support level and pressure level
1. Integer point
The integer point refers to the integer number of hundreds and thousands, such as 1400, 1600 and 2000 points. Investors generally feel that the integer is not easy to rise or fall through, which makes the integer price not easy to rise or fall through. Naturally, this integer point will also rise. If the integer point is broken, it will fall (rise) again.
2. Golden section
Golden Section means that the friction resistance or support level of fitness exercise is related to a series of big numbers of golden section rate, which can be used to predict the point position. The most important big numbers in the golden section method are: 0.236, 0.382, 0.500, 0.618. The longer the golden section is used for prediction and analysis, the higher the accuracy.
3. Form up and down
Sometimes there is no established development trend, just in the consolidation link, so the consolidation form of the upper and lower on the formation of the pressure level or support level. The common forms of consolidation are triangle consolidation, shell consolidation and flag consolidation. It must be noted that this kind of consolidation is more common in the form of wireless relay. In other words, after consolidation, the price can operate according to the original location in most cases.
Naturally, it is not only based on this that we can distinguish MACD deviation, but also based on the performance indicators such as moving average system and trading volume index to comprehensively analyze the market situation. The special tools to distinguish the working pressure and supporting points of foreign exchange trading include moving average, percentage line, Fibonacci level and Gann fan line.
3、 Support point and working pressure
The basic element is to consider selling at the pressure level and buying at the support level.
1. In foreign exchange investment, support level and pressure level can be used as reference for setting stop loss and stop profit
2. Support level and pressure level can be used as the reference for entering or exiting
3. The actual effect of the support point / pressure level must be tested by the market
4、 Frequently asked questions about pressure level and support level:
1. In most cases, the pressure level and support level are not a certain price, just a segment (20-30 points).
2. The cycle time of K-line is different, and the position predictability is different.
3. Pressure level and support level are not indestructible.