The main factors causing market resonance in the foreign exchange market

　　Market resonanceIt is a common phenomenon in any speculative market, which is clearly explained in Gann's theory. Gann believes that when the inherent frequency of market fluctuations is in a multiple relationship with the frequency of external market driving forces, a resonance relationship will occur in the market, causing a huge upward or downward movement. This theory applies toforeign exchangeThe market has been validated.


Opening the foreign exchange market trend graph, you can find that the market trend often fluctuates greatly. Once it starts from a low level and breaks through upwards, the exchange rate is like a wild horse galloping upwards; And once it breaks through from a high level, the exchange rate is like a burst of river water for thousands of miles. This is the graphical reflection of resonance effect in the foreign exchange market.


　　In the foreign exchange market, there are four main factors that cause market resonance.


　　1Fundamental resonanceBased on economic data, interest rate levels, major political and economic events, etc., a judgment is made that a certain currency will rise or fall, and this basis is put into the market to verify. If the market verifies the direction correctly, then the current trend will be supported by fundamental resonance, and we can stick to our original judgment.


　　2Multi period resonanceWe judge through the collaborative resonance of multi cycle technology systems, which is a trend, form, and indicator centered on price. When long-term investors, medium-term investors, and short-term investors engage in buying or selling operations in the same direction at the same time, there will be an upward or downward resonance of power.
When the long, medium, and short periods in a time cycle intersect at the same time point and have the same direction, there will be an upward or downward resonance in time;When the long-term moving average, medium-term moving average, and short-term moving average intersect at the same price point and have the same aspects, there will be an upward or downward resonance in cost;WhenKLine system, moving average systemKDJIndicatorsMACDIndicatorsRSIWhen multiple technical indicators such as indicators send buy or sell signals, there will be a multi cycle resonance in technology.


　　3Multi currency resonanceBy using cross selling to determine the resonance of multiple currencies and finding the currency with the strongest trend, we can capture the trend of international mainstream funds. This currency is currently the strong focus of the foreign exchange market. If we want to do so, we should focus on the variety that international mainstream funds pay attention to, so that profits are both safe and guaranteed.


　　4Multi market resonanceWith the integration of the global economy, there will be horizontal linkage effects and mutual influence between various markets and currencies. Through the collaborative resonance of multiple markets, we can greatly improve the accuracy of analysis and judgment. For example, if we want to analyze the US dollar, we must also pay attention to the relevant market trends, such as the Dow JonesNSDAQHow to get there,goldHow to determine the price(seesaw effect )，crude oilTrends, bond market, futures market, interbank lending rates, etc. Verify whether the trend of the US dollar aligns with our judgment through multiple markets in a three-dimensional manner. This greatly improves reliability.


It can be said with certainty that if all four aspects support the rise of a certain currency, and all synergistic resonance occurs, then the probability of the currency's rise can almost reach100%If one aspect is not coordinated, the probability of appreciation will decrease. This is the main method for measuring risk.


From the above analysis, it can be seen that resonance occurs under certain conditions. When these conditions are met, resonance can occur;When the conditions are not met, resonance will not occur;When some conditions are met, resonance will also occur, but the effect is small;The more conditions for resonance are met, the greater the power of resonance. Resonance is a resultant force that occurs at the same time and pushes towards the same direction. If investors grasp this resonance point, there is no doubt that you are the big winner in the market.

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