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The setup and use of averages in speculative foreign exchange investment

2023/2/26 10:12:30  Classification:   Participation: 8  

speculative foreign exchange best forex rebates are one of the most commonly used analytical rebateinforextradingdicators, which reflect the average cost changes in the market over a period of time rebatemeaninginforex rebatesinforex multiple averages form a system of averages can provide a bas bestforexrebate for judging the cashback forex of the foreign exchange market, but also play a role in support and resistance I. The composition of averages averages, according to the different ways of calculation, can be commonly divided into common SMA, exponential SMA, smoothed SMA and weighted SMA Here we mainly introduce the ordinary SMA and exponential SMA ordinary SMA: the ordinary average of the closing price of a certain period of time in the past, such as the 20-day SMA, is the closing price of the past 20 trading days added together and then divided by 20, to get a value; and then 20 trading days backwards to yesterday, the same method to calculate another value, and so on, these These values are connected to form a common average, the exponential average: the formation and the common average is identical, but in the calculation of the average value, the calculation method is different, such as the 20-day average, the exponential average takes the index weighted average method, the closer to the day, the greater the weight, rather than the average distribution of the weight as in the common average, so the exponential average in most cases can be faster to reflect the latest The advantages and disadvantages of the two: there is no absolute advantage or disadvantage, in different stages of operation, the two can reflect different effects, the selection of experience is relatively greater personal more accustomed to the use of exponential averages, the combination of multiple exponential averages to assist in determining the market trend the following chart is the effect of the two different averages reflected in the daily chart of the EUR / USD, where the averaging parameters are set to 20, where the red averages are ordinary 20-day average, blue average for the 20-day exponential average from the picture can be seen, in most cases the speed of the index average turn around are relatively earlier than the ordinary average, can relatively faster to keep up with the market trend Note: In general, the average of the calculation price with the closing price, but can also be used according to the different needs of the minimum price, maximum price or opening price II, the setting of the average system if the multiple regular SMAs are arranged together, this is to form a more helpful analysis of the SMA system In general, when using the SMA system for analysis, the common parameters are arranged as follows: A, 5, 10, 20, 30, 40, 50 (equal span arrangement) B, 5, 8, 13, 21, 34, 55 (Fibonacci arrangement) On the basis of these two arrangements, add 125, 200 and 250 parameters of the SMA. 200 and 250 three parameters of the average line three, the use of the average system alignment state to determine the rhythm of foreign exchange trading market alignment state of the average system, generally can be divided into convergence, divergence, parallel three states which convergence state indicates that the market has experienced a unilateral trend after the original momentum digestion or accumulation of new running momentum process, the longer the convergence, the greater the momentum generated; divergence state is Convergence is the prelude to the outbreak of momentum; parallel state indicates that the market has been a unidirectional outbreak of momentum, triggering a new unilateral trend in the unilateral market rhythm, the cycle of these three states: convergence-〉divergence-〉parallel-〉 convergence and in the consolidation city, it is reflected in the cycle of convergence-〉divergence-〉 convergence, until the breakthrough occurs IV, the conventional use of averages two Basic function 1, the basic signal of the golden and dead fork instructions Here we have selected the daily chart of the 5 and 13 SMAs as the basis for the golden and dead fork signals, from Figure 3, we can find that, in addition to the blue circle in the oscillation trend, these two SMAs have sustained close contact, other times issued by the golden and dead fork signals can provide medium or short term trading opportunities and position signals in Different currencies and different time periods, the parameters of the SMA crossover need to be set according to local conditions, can not be generalized, for example, it is not appropriate to 5 and 13 parameters placed directly to the hourly chart of EUR / USD, its relatively high crossover frequency will lead to too many unnecessary transactions (profit and loss are within 20 points of the trading signal), and easy to lose the trend single 2, SMA support and resistance to the exchange rate Here we again use Figure 2 to understand the average system to provide support and resistance when the exchange rate runs below the average system, the average system will play an obvious resistance role, hindering the rebound in the exchange rate; similarly, when the exchange rate stands firm on the average system, the average system will play an obvious support role, the reason for this role lies in the average calculation of the market cost changes reflected in the way Of course, the average also has an attractive force, when the unilateral operation of the process farther away from the average system, the average will also issue a gravitational effect, the average itself to follow the direction of the exchange rate, while also pulling the exchange rate retracement five, the use of special averages so-called special averages refers to a specific stage can play a clear watershed averages. Generally speaking, we will use it in the main trend of the unilateral market, such as the following chart: EUR / USD weekly chart, where the 55-week exponential average reflects the special long-short watershed effect in the red line that is the 55-week exponential average, in the past long term up trend has played a supporting role many times, and this year the euro fell below this average has been maintained after the retracement of the trend of this chart is the 4-hour chart parameters for the 55 exponential Average, in the picture held in the blue box in the course of the unilateral trend, this average played a significant and sustained suppression effect, until the average was broken through once, the euros decline in strength only gradually alleviated most cases, as long as a unilateral trend is formed this average with special instructions are present, generally in the small trend guidance is not significant, mainly for large Continuity of the higher trend to assist in the analysis, to assist in determining whether the direction of change or whether there are signs of deceleration of the operation of the search for these special averages, mainly for repeated testing, the more times effectively touched, the more the averages will have indicative significance

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