Yilong Forex: Analyzing Trends through the Forms of Forex Trading Techniques

foreign exchangeIt is an investment product with uncertain risk factors and has

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Operating continuously for hours without interruption, trading can be conducted at any time without interruption. This flexibility in trading operations makes the entire price trend unpredictable, making it difficult for investors to make regular summaries. In order to better engage in foreign exchange investment, experienced investors will make judgments based on the cyclical changes in the trend, which is what we call the pattern of foreign exchange trading. It is very important to see the trend through the pattern.Tips for Trading Foreign Exchange

The four major stages of the trend
According to different cyclical trends, the exchange rate can generally be divided into four stages: bottoming out, rising, topping out, and falling. These patterns can be determined by observing the trend chart of foreign exchange rates and combining it with some corresponding technical means. Judging the form can provide you with great help in the process of trading foreign exchange.
Bottom building and rising stages
During the bottoming stage, foreign exchange generally exhibits three types of bottoms: triple bottom, head and shoulder bottom, and double bottom. In special cases, a semi-circular bottom, also known as a pot bottom, may also appear. Of course, there may be different bottoms in different situations. If the horizontal area of the bottom structure in this form is relatively large, it means that the accumulated kinetic energy of the rise will be greater, and the magnitude of the rise will increase significantly. At this stage, you can choose to buy low and sell high, or you can choose to wait conservatively and move on to the next stage. The emergence of the upward phase indicates that a new round of upward trend is about to begin, and this upward height is the vertical height of the bottom of the previous period. A significant characteristic of this phase is that it fluctuates greatly and disappears very quickly, and will not persist. However, if there is upward pressure at this time, a new round of upward trend will appear again after a period of time. Investors at this stage should seize the best opportunity, as it is also the main source of foreign exchange profits.
Head building and decline phase
The head building stage is actually the later stage of the upward phase, during which the market trend will have an upward momentum, but ultimately cannot break through the highest point, resulting in a downward breakthrough beyond the neck line and entering the downward phase. At this stage, medium - to long-term forex traders should make timely purchases. The falling stage is completely opposite to the rising stage. At this stage, the exchange rate drops rapidly until the momentum disappears. At this stage, quick stop loss should be implemented to avoid causing significant losses.
Different judgments on different stages of foreign exchange trading can help you make more informed decisions, avoid being led by the nose, and make timely purchases and sales to gain more profits. Yilong Financial provides services for foreign exchange investors20There are multiple types of foreign exchange products available in the market year-round, making trading convenient and providing numerous opportunities for earning money.