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Comprehensive analysis of foreign exchange top and bottom judgment method

We may all have such ex cashbackforexprofitcalculatorerience: look at a certa cashbackforexpipcalculator currency every day in the r cashback forex profit calculatore, but is afraid to buy, finally one day determined to buy, the results just bought into the beginning of the fall, or just sold up investors pounding their chests, lamenting their bad luck, as if the market in good faith forexcashbackprofitcalculator their own against the reason for this situation, is the judgment of the top and bottom of the exchange rate The main reason why many tops and bottoms are very difficult to judge is that when a top appears it is often combined with a technical retracement Sometimes, after rising to a certain high, the exchange rate will rise again after an adjustment If you close your position too early, you will lose some profit Similarly, the exchange rate is at a relatively low level and it is easy to mistake it for a bottom As a result, the exchange rate consolidates at a low level and then falls again If you open a position too early, you will be trapped in a passive We want to accurately grasp the top and bottom can be said to be impossible I say this everyone will not object to it then is not that we can not judge the top and bottom it? Of course not, although we can not accurately judge the top and bottom, but this does not prevent us from buying at the relative bottom, selling at the relative top can be said to speculate on foreign exchange ultimately landed on the two key points of buying and selling, so most of your time are looking for the bottom and top to do this is really not easy, the next talk about how I judge the top and bottom from the second high (low) point to judge the top and bottom of the exchange rate Bottom Judging the top and bottom, difficult in sometimes the exchange rate is really at the top (bottom), and we do not know ourselves and sometimes we think the market has reached the top, but in many buying, the exchange rate is a record high This situation is very easy to occur in the big bull market, which is also some technicalists often on the way up in the exchange rate is not bullish for important reasons In fact, the rise and fall of the exchange rate and the buyer and the sellers power is closely related to the formation of the top and bottom is often the moment of a major turning point in the contrast between the two forces Although our judgment of the first top is in the Lushan do not know its true nature, but we can compare the second top with the first top if the second top is lower than the first top, it means that the buyers power has been exhausted, has not been able to push the exchange rate over the previous high then in this position, it is The conversion of the two forces of buying and selling, resulting in the power of the seller is stronger than the power of the buyer, the original long capital may also change the strategy to join the ranks of the short thus making the price fall sharply, the top is formed Use wave theory to determine the bottom and top of the market Use wave theory to determine the bottom and top of the market is also a very good method Elliott wave theory must be very familiar to everyone Familiar with its basic idea is that the market is generally rising in five waves, 1, 3, 5 waves up, 2, 4 waves to adjust the market is generally down to 3 waves down to complete the A wave down, B wave rebound, C wave down Up once the market has begun, we can use wave theory to count the waves according to the height and width between the waves, you can predict the top and bottom in advance We can make the corresponding operation according to the judgment of the top and bottom, to achieve the purpose of risk avoidance and profit Wave theory has the advantage of being more intuitive, by quantifying, calculating the location of the top or bottom and the main points of wave theory is also relatively easy to grasp, we are relatively easy to accept But the disadvantages of wave theory is also obvious first of all, wave theory that the market is rising in 5 waves This is a subjective judgment, the lack of a solid and effective theoretical basis sometimes the development of the market does not fully comply with the wave theory run this to our judgment caused by a certain error this reason is very simple, if all the market can be accurately grasped by the number of waves, the market can make money for everyone, then there are still who lose? From the foreign exchange market is a zero-sum game such a principle, some people earn is bound to lose, some people lose is bound to earn, otherwise the market will not be able to run Secondly, wave theory seems simple, if you really count the waves is also very complex often large waves in the set of small waves, they are interlinked, forming a chain of the final result is that we also count dizzy Last point is that Wave theory is relatively accurate in long-period technical graphs, but less accurate in short-period technical graphs, so it is basically not very meaningful to count waves in the time chart. In fact, any theory has its own flaws and shortcomings, in any field, there is no flawless theory, especially in the foreign exchange market is full of speculative atmosphere, complex market, so far There is no single theory that can fully explain everything that happens in the market Wave theory, despite its shortcomings, does not prevent us from using wave theory to determine the top and bottom of the market, after all, wave theory gives us a basis for reference, so that we grasp the probability of the top and bottom is greatly improved We should thank the great legacy of Elliott Masters left us Use indicators to determine the top and bottom of the market  The use of indicators to determine tops and bottoms is a frequently used and effective method we can use commonly used indicators to make an objective judgment of tops and bottoms Among technical indicators RSI (Relative Strength Indicator) is the more commonly used indicator to determine tops and bottoms. Technical indicators RSI from a specific period of price changes, speculate on the future direction of price changes, and according to the price increase or decrease in magnitude to show the strength of the market The indicator of the bottom and top of the judgment is more accurate The common situation is that when the exchange rate and RSI is at a high level, forming a peak than a low peak of two peaks, but the exchange rate corresponds to a peak than a peak high, which is called top divergence exchange rate this rise is the final exhaustion action This is a relatively strong sell signal and the opposite of this situation is the bottom divergence RSI in the low formation of two sequentially rising valleys, while the exchange rate is still falling, this is the last drop or is close to the last drop, is a signal to start building positions In technical indicators, in addition to RSI indicators on the top and bottom of the exchange rate has a role in judging, other indicators also have the role of judging the top and bottom like KDJ ( Stochastic indicator has this role, in the KDJ indicator, we often use it incorrectly, and in fact the instructions for the use of this technical indicator also clearly points out that when the D value is above 70%, the market is oversold phenomenon If the operation is based on this indicator, it often brings a big mistake, this situation is particularly easy to appear in some currencies when there is a very strong trend, KDJ indicator is likely to be high blunt. In fact, I think the use of the KDJ indicator should be combined with the RSI indicator to determine the direction of the exchange rate has a higher success rate Forex financial tips, there are many ways to determine the top and bottom, we should be in the market a thousand refinements, summed up for their own, effective judgment method. Effective judgment methods, in addition to the ability to imitate the need for innovative ideas, and put into action to improve