Foreign exchange technical analysis - K-line in the application of foreign exchange trend trading method

{}Posted in2023/2/25 2:22:54 | 7Browse

1. up ForexrebateforExness Forex rebate for Exness 103 cashbackforexexness our foreign exchange trend trad forexcashrebateg method from the downtrend to uptrend process, the specific application of the K- forexrebates diagram below we will break down the above process to tell: (www.waihuibang.com/fxschool/) technical /) Figure 104, the price has risen through the downtrend line cashback forex the inflection line, in accordance with the assumptions of the foreign exchange trend trading method 1 can be seen, the previous downtrend has ended, the future will start to rise trend or horizontal finishing that is, from now on, we no longer consider the direction of the downtrend probability theory and mathematical statistics we know that the exclusion of downtrend, not that such events are not If the market resumes its downward trend, we will use a stop-loss trading strategy; if we do not get stopped out of the market, we will complete our trading plan, completing the process of making a big profit with a small loss. If the price breaks through the demarcation point A, as shown in Figure 105, we can determine that the price has already broken through the demarcation point A. At this point, we can determine that the future will Any pullback after that will provide us with a buying opportunity to what price level will be adjusted to? How to choose a good price to buy? This becomes the focus of our attention most cases is the price breakthrough point A, immediately after the start of the retracement trend we know that the retracement of the target in the range of about 30-95% (Figure 106), after we will use the K-line pattern to accurately identify the retracement reversal point in the actual trading process, investors are most likely to make the mistake of not waiting patiently for the appearance of retracement In the actual trading process, investors are most likely to make the mistake of not having the patience to wait for a retracement to appear, worrying about missing the opportunity, impulsively executing a buying plan (usually called chasing the market) The correct approach is to be calm and wait patiently, without worrying that the market price will not come back, there is no city that never goes up, there is no city that never goes down Must wait for the retracement to appear before taking action, to avoid being set in the market on the high roof, there is no wait; stop loss is not an embarrassing situation if in the retracement process, the price reached the retracement of the theoretical target point D point [(30%-95%) X (C-B)], and the K-line reversal pattern listed in Figure 107, the market suggests that we have adjusted or will soon end, this will be the best time to implement our buy plan Figure 108 is the assumption that we have At this point, we have to observe whether the price will form a K line reversal pattern near the theoretical target or inflection line to decide whether we should continue to hold or exit our existing long positions if any of the K-line reversal patterns listed in Figure 108 occur at the rising target (point E), we will Consider exiting the existing long position, close the position with profit, and wait for the pullback to buy again Figure 109 assumes that the price at the theoretical target or inflection line (point E) to form a K-line reversal pattern after the pullback trend, we have closed the position with profit, and wait for the pullback to buy again at this time we will observe whether the price in the rising trend line or near the inflection line (point F) to form a K-line reversal pattern, once the formation of reversal, we will timely implementation of the buy plan, at this time the stop loss has been adjusted to D point after we will have been running in accordance with the above trading ideas, until we were stopped out of the game, before changing the direction of the transaction because the stop loss out of the game indicates that the previously set trend has ended 2. downtrend Figure 110 is our foreign exchange trend trading method from the uptrend to downtrend process, the specific application of the K-line diagram below We will break down the above process: Figure 111, the price has fallen below the uptrend line and the inflection line, in accordance with the assumptions of the foreign exchange trend trading method 1 can be seen, the previous uptrend has ended, the future will start a downward trend or horizontal finishing that is, from now on, we no longer consider the direction of the uptrend to exclude the uptrend, the future is left with only two directions Now we are concerned about whether the price can fall below the cut-off point A. If the price falls below the cut-off point A, as we know from assumption 3 of the forex trend trading method, we can exclude the horizontal collation and establish the only future direction of the market - the downtrend assuming that the price has fallen below the cut-off point A, and at point C Start a retracement, as shown in Figure 112 price has fallen below the cut-off point A, at this point we can determine the future will start a downward trend, any subsequent retracement will provide us with the opportunity to sell the specific price will be at which point to complete the retracement trend if in the retracement process, the price reached the theoretical target point D [(30% - 95%) X (B C)], and the K-line reversal pattern listed in Figure 112, the market suggests that the adjustment has been or will be completed, this will be the best time to execute our selling plan Figure 113 is a chart assuming that the retracement is completed at point D. At this point, we have to observe the price to the theoretical target point or near the inflection line, whether it will form a K line reversal pattern If any of the K-line reversal patterns listed in Figure 113 occur at the price target (point E), we will consider exiting the existing short position, close the position with profit, and wait for the pullback to sell again Figure 114 is the retracement of the K-line reversal pattern after the price is assumed to form at the theoretical target or inflection line, we have closed the position with profit We will wait for the pullback to buy again at this time we will observe whether the price can form a K-line reversal pattern near the downward trend line or inflection line (F point), once the formation of reversal, we will promptly implement the sell plan, the stop loss level has been adjusted to D point after we will have been running in accordance with the above trading ideas, until we are stopped out of the game, before changing the direction of the transaction 3. horizontal finishing horizontal finishing situation Divided into the end of the downtrend in the horizontal finishing (Figure 115-A) and the end of the uptrend in the horizontal finishing (Figure 115-B) 4. K-line reversal pattern The following is often used in the foreign exchange trend trading method K-line reversal pattern 1) hammer line is characterized by a long lower shadow, the entity is small, the entity can is black or white, is an important reversal pattern hammer line can be bullish, can also be bearish, depending on its position in the trend to determine the hammer lines most obvious feature is that the lower shadow is relatively long, usually about twice the entity part, is the most ideal or standard reversal pattern shown in Figure 116 in the uptrend, the effective hammer line appears at the bottom of the retracement wave and the bottom of the main wave In a downtrend, a valid hammer line appears at the intersection of the bottom of the main down wave and the bottom of the retracement wave, providing a buy signal to close the position, as shown in Figure 118 Example 1: Hammer line appears in an uptrend: Figure 119 is the hourly chart of EURUSD from December 13, 2006 to December 19, 2006. : the euro has broken through the downtrend line and the inflection line, confirming that the previous downtrend has ended, the future will start to rise or horizontal finishing trend because the price has broken through the A point, so the horizontal finishing trend can be ruled out, the future will start to rise trend euro is now forming a hammer line, confirming that the adjustment is about to be completed, the start of a rapid upward trend Figure 120 is the euro after the formation of the hammer line trend chart example 2: hammer Line appears in the downtrend: Figure 121 is the USDCAD September 2001 - August 2002 weekly chart in June 23, 2002, the USDCAD encountered an important resistance level - the inflection line, at the inflection point to form a single day reversal K line - hammer line, prompting the closing of short positions, the Take profits and close, after which the upward trend of more than 1000 points unfolded, up to 1.6054 2) Shooting star line Shooting star line has a smaller entity, the entity is located at the lower end of the price range, its upper shadow is longer, usually more than two times the entity as shown in Figure 122 In an uptrend, shooting star line appears at the intersection of the top of the main rising wave and the top of the retracement wave, providing a close out sell signal, as shown in Figure 123 In a downtrend, a shooting star line appears at the intersection of the top of the retracement wave and the top of the main falling wave, providing a sell signal, as shown in Figure 124 Example 1: Shooting star line appears in an uptrend: Figure 125 shows the USD/CAD January 2000 -March 2000 daily chart from Figure 125 can be seen, the U.S. dollar against the Canadian dollar in an uptrend, after encountering the inflection line, the formation of a shooting star line, 4 days later again formed a shooting star line, issued an important reversal signal, prompting us to close positions in time to take profits to close Figure 126 is the U.S. dollar against the Canadian dollar after the formation of the shooting star line chart Example 2: Shooting star line appears in the downtrend. As can be seen in Figure 127, the U.S. dollar against the Swiss franc has broken through the rising trend line and the inflection line, but also has fallen below the dividing point A, in accordance with the assumptions of the foreign exchange trend trading method, confirming that the future will start a downward trend, at this time we need to pass the golden mean theory, predict the possible formation of the reversal of the region, and observe whether the formation of the K-line reversal pattern in the reversal region by Figure 127 shows that the U.S. dollar against the Swiss franc formed Meteor line reversal, at this time is our best opportunity to enter the market to sell, stop-loss point at point B Figure 127 is the USDCHF November 2006 - March 2007 daily chart Figure 128 is the USDCHF formed after the meteor line trend chart Example 3: Another example of a meteor line appears in the formation of a downtrend reversal: Figure 129 can be seen The dollar against the Swiss franc in the fall below the rising trend line and the inflection line, and then break through the dividing point A, there are foreign exchange trend trading method assumptions, we confirm that the previous uptrend has ended, and rule out the possibility of future horizontal finishing, the future will start a downward trend when the price rises back to the inflection line near the formation of a shooting star line, issued a reversal signal, at this time to provide investors with an important time to sell Figure 129 is USDCHF June 2005 - September 2005 daily chart Figure 130 shows the trend of USDCHF after the formation of a shooting star line 3) The star of enlightenment usually consists of three K lines (sometimes it may consist of four or five), the first is a long negative line, the second is a small negative line or a small positive line, the third is a slightly longer positive line the second entity like The morning sun is about to rise, indicating that prices will rise as shown in Figure 131 The first long negative line indicates that the market is in a one-sided decline, the long negative entity indicates that the short side of the disc occupies an absolute advantage, the negative factors continue to come out to suppress the market, even if there are positive factors, will be quickly digested by the market; the second K-line downward jump indicates that the market is still in a pessimistic mood. About 90% of investors generally believe that the downward trend will continue at this time, the disc of the long and short sides fighting fiercely, the pattern is brewing the possibility of dramatic changes, a small positive line said that the plate is in the dominant position, the market did not accelerate downward as we expect; the third long positive line said that the plate began to take full control of the plate, and re-gathered the popularity, with the price level of the rise, multiple As the price level rises, the short side is forced to stop its position and turn its original short orders into long orders, joining the ranks of the long side The uptrend has formed and cannot be reversed The Kai Star pattern is considered the most reliable reversal pattern In an uptrend, the Kai Star appears at the intersection of the bottom of the retracement wave and the bottom of the main uptrend wave, providing a buy signal, as shown in Figure 132 In a downtrend, a valid Kai Star appears at the intersection of the bottom of the main downtrend wave and the bottom of the retracement wave The intersection of the bottom, providing a closing buy signal, as shown in Figure 133 Example 1: The star appears in the uptrend: As can be seen in Figure 134, the euro has broken through the downtrend line and the inflection line, and rose through the dividing point A, according to the assumptions of the foreign exchange trend trading method, to confirm the previous downtrend has ended, the future will start the upward trend of the euro is currently blocked after the retracement, the formation of the star reversal pattern, is the best buying opportunity. Figure 134 is the EURUSD weekly chart from July 1993 to June 1994 Figure 135 is the EURUSD chart after the formation of the Kaiju star Example 2: Kaiju star appears in the downtrend: Figure 136 is the USDCHF daily chart from May 2005 to September 2005 Figure 137 is after the retracement chart from Figure 136 can be seen, the U.S. dollar against the Swiss franc has broken through the rising trend line and the inflection point line, after breaking through the dividing point A, according to the assumptions of the foreign exchange trend trading method, confirming the previous rising trend and the future of the horizontal finishing can be ruled out, the future of only one possibility - rising trend of the current U.S. dollar against the Swiss franc after breaking through the dividing point A, the formation of The star pattern, suggesting that the future will start a retracement trend The current formation of the shooting star line reversal pattern, indicating that the dollar against the Swiss franc will again start a downward trend, at this time will be theoretical selling point of the foreign exchange trend trading method, the stop-loss point at point B Figure 138 is the downward trend after the start of the chart Figure 139 is the second formation of the star after the trend chart from Figure 138 can be seen, the dollar against the Swiss franc in the vicinity of the inflection line (please readers to find out for themselves) there is a formation of the Kaixing reversal pattern, prompting us to close positions in time to buy and take profits 4) Twilight star is just the opposite of the Kaixing star, it is the top reversal pattern, foreshadowing the coming of night Twilight star consists of three K lines, the first is a long positive line, the second is a small positive or small negative line, the third is a long negative line from the form, similar to the technical analysis of the island reversal pattern as shown in Figure 140 shown in the uptrend, a valid twilight star appears at the intersection of the top of the main rising wave and the top of the adjustment wave, providing a closing sell signal, as shown in Figure 141 In the downtrend, a valid twilight star appears at the intersection of the top of the adjustment wave and the top of the main falling wave, providing a sell signal, as shown in Figure 142 Example 1: Twilight star appears in the uptrend: Figure 143 is USD/CAD 1999 March 1999-January 2001 weekly chart Figure 144 is the USD/CAD after the formation of the twilight star chart from Figure 143 can be seen, the USD/CAD has broken through the downward trend line and the inflection line, and has broken through the dividing point A, according to the assumptions of the foreign exchange trend trading method, after the confirmation will start an upward trend at the current USD/CAD at the inflection line to form the twilight star reversal Formation, prompting us to take profits on the previous long positions in time to close, waiting for the time to buy again Example 2: twilight star appears in the downtrend: Figure 145 is the USDJPY April 2001 - August 2001 daily chart Figure 146 is the formation of the USDJPY twilight star after the trend chart shown in Figure 145, the USDJPY has fallen below the rising trend line and Inflection point line, the previous uptrend has ended, the future will be launched down or horizontal finishing trend, as the price has fallen below the cut-off point A, according to the foreign exchange trend trading method assumes that the possibility of horizontal finishing can be ruled out, the future will be launched down trend at present the price has formed a twilight star reversal, confirming the retracement is about to end, this will be the best time to sell, the stop-loss point for the stop-loss point B5) cross star cross star is also Technical analysis of important analytical tools, the cross refers to the opening price and closing price in the same price or very close (sometimes there are several units of difference), the upper shadow reflects the highest price of the day, while the lower shadow represents the lowest price, in general, the appearance of the cross trend indicates that the balance of power and balance in the uptrend, the effective cross appears at the bottom of the retracement wave and the bottom of the main rising wave intersection, providing a buy signal; valid crosses appear at the top of the main rising wave and the intersection of the top of the retracement wave, providing a closing sell signal as shown in Figure 148 in the downtrend, valid crosses appear at the top of the retracement wave and the intersection of the bottom of the main falling wave, providing a sell signal; valid crosses appear at the bottom of the main falling wave and the intersection of the bottom of the retracement wave, providing a closing buy signal as shown in Figure 149 As shown in example 1: cross star appears in the uptrend: Figure 150 is the EURUSD February 2007 - March 2007 4-hour chart Figure 151 is the EURUSD after the formation of the cross star trend chart Figure 150 can be seen, the euro has broken through the downtrend line and the inflection line, at the same time has broken through the dividing point A, according to the assumption of foreign exchange trend trading method After confirming that will start an upward trend after the current price just retraced to the rising band of 38.2% after the formation of the cross reversal, to determine the end of the adjustment, is expected to soon start an upward trend Figure 151 can be seen, after the euro against the dollar in the uptrend encountered the inflection line, the formation of the cross reversal (shooting star line), prompting the closing of positions to sell signals, indicating that the price will soon start a retracement trend Example 2: The cross appears in Downward trend: Figure 152 is the EURUSD February 1999 - December 2000 weekly chart Figure 152 can be seen, the EURUSD in the process of falling encountered the inflection line, and the formation of a cross reversal, indicating the formation of the bottom, is about to start a retracement trend, the last three K-line we previously talked about is the star, the typical bottom reversal pattern so that the market Provide multiple closing buy signals Figure 153 is the EURUSD at the inflection line after the formation of the cross and the star of the trend chart Example 3: In the example of a typical cross to form the bottom: Figure 154 is the EURUSD October 1999 - August 2001 weekly chart Figure 154 can be seen, the EURUSD has broken through the downtrend line and the inflection line, the Confirmation of the previous downtrend has ended, the future will be launched upward trend or horizontal finishing trend, due to the price of the inability to break through the demarcation point A, confirmed after the horizontal finishing trend will be launched at the current price level is close to the stop loss point B, is the best time to buy through the K-line analysis, the current formation of the cross star, a bullish cross star pattern, indicating that the adjustment is about to end, will be launched upward trend, again testing the demarcation point A Figure 155 (6) Yang wrapped Yin Yang wrapped Yin consists of two K lines of opposite color, the first one is negative, the second one is positive, the entity of the second positive line completely covers the entity of the first negative line as shown in Figure 156 In an uptrend, a valid Yang wrapped Yin reversal pattern appears at the intersection of the bottom of the retracement wave and the bottom of the main rising wave, suggesting a buy signal as shown in Figure 157 In a downtrend, a valid Yang wrapped Yin reversal pattern appears at the intersection of the bottom of the retracement wave and the bottom of the main rising wave, suggesting a buy signal as shown in Figure 157 downtrend, the effective yang-wrap-yin reversal pattern appears at the bottom of the main down wave and the intersection of the bottom of the adjustment wave, providing a closing buy signal as shown in Figure 158 Example 1: yang-wrap-yin appears in the uptrend: Figure 159 is the EURUSD May 2003 - October 2003 daily chart Figure 159 shows that the euro first broke through the inflection line, followed by Break through the downtrend line, according to the assumptions of foreign exchange trend trading method, confirm the previous downtrend has ended, the future will start rising trend or horizontal finishing trend, because the price has broken through the dividing point A, so the possibility of horizontal finishing is ruled out, the future will start rising trend, the current price level appeared positive wrapped Yin K reversal pattern, confirm the end of the adjustment, uptrend will start at any time Figure 160 is the EURUSD The formation of the yang pack Yin K line reversal after the trend chart Example 2: Yang pack Yin appears in the downtrend: Figure 161 is the euro November 2000 - 2001 month daily chart Figure 161 can be seen, the euro against the dollar has (1) break through the rising trend line (2) break through the inflection line (3) break through the dividing point A according to the foreign exchange trend trading method assumptions, the The future will start a downward trend at present, the price level break through the dividing point A, immediately after the formation of the hammer line reversal pattern, and after the formation of the positive package Yin reversal pattern, indicating that the euro against the dollar before falling will first do a recovery adjustment trend Figure 162 is the euro against the dollar after the formation of the positive package Yin reversal pattern trend chart at present the price level back to the forex trend trading method theoretical sell point, stop loss point for the B point Figure 163 is after the euro against the dollar (7) Yin wrapped Yang Yin wrapped Yang consists of two K lines of opposite color, the first is a positive line, the second is a negative line, the entity of the second negative line completely covers the entity of the first positive line as shown in Figure 164 In an uptrend, a valid Yin wrapped Yang reversal pattern appears at the intersection of the top of the main rising wave and the top of the retracement wave, suggesting a closing sell signal as shown in Figure 165 In a downtrend, a valid Yin wrapped Yang reversal pattern appears at the intersection of the top of the main rising wave and the top of the retracement wave, suggesting a closing sell signal as shown in Figure 165 Yin-wrap-positive reversal pattern appears at the intersection of the top of the adjustment wave and the top of the main down wave, providing a sell signal as shown in Figure 166 Example 1: Yin-wrap-positive appears in an uptrend: Figure 167 is the EURUSD daily chart from April 2001 - August 2001 Figure 167 shows that the EURUSD broke through the downtrend line and the inflection line, and broke through the demarcation point A According to the assumptions of the foreign exchange trend trading method, the future will start an upward trend at present the euro has been very profitable, almost complete the process of loss 1 earn 2 due to the euro in the last two K-line formation of yin and Yang, the last K-line and meteor line reversal, the market is expected to start a retracement trend, the market prompted to close positions to sell, take profits and wait for the end of the retracement, according to the K-line reversal pattern to buy again Figure 168 is the euro against the dollar U.S. dollar after the formation of yin and Yang trend chart example 2: Yin and Yang appeared in the downtrend: Figure 169 is the euro against the dollar in February 2007 - June 2007 daily chart Figure 169 shows that the euro has broken through the rising trend line and the line of inflection, and fell below the dividing point A, according to the assumptions of the foreign exchange trend trading method, confirm that the previous uptrend and after the The horizontal finishing trend, the future will start a downward trend can be seen in the chart, the euro formed a yin and yang K-line reversal pattern, indicating the end of price adjustment, downward trend will start at any time Figure 170 is the euro against the U.S. dollar after the formation of the yin and yang K-line reversal of the euro trend chart 8) dark clouds cover the top by two candle lines, belonging to the top reversal pattern the first K-line is a long positive, the second K-line for the high open (or flat open ) of the negative line, the closing price is close to the lowest level of the day, and to exceed 50% of the previous entity the higher the proportion of the entity penetration, the higher the possibility of forming a top as shown in Figure 171 In an uptrend, the effective ominous top reversal pattern appears at the intersection of the top of the main wave and the top of the adjustment wave, suggesting a closing sell signal as shown in Figure 172 In a downtrend, the effective ominous top Reversal pattern appears at the intersection of the top of the adjustment wave and the top of the main down wave, prompting a sell signal as shown in Figure 173 Example 1: the top of the dark cloud appears in the uptrend: Figure 174 is the EURUSD November 2000 - October 2001 weekly chart from Figure 174 can be seen, the euro is now in an uptrend, the formation of the dark cloud at the inflection line K line Reversal pattern, prompting us to sell the previous long position in time to close the position for profit Figure 175 is the formation of the EURUSD after the cloud-covered K-line reversal pattern chart Example 2: the cloud-covered top appears in the downtrend: Figure 176 is the British pound against the U.S. dollar day October 2000 - March 2001 daily chart from Figure 176 to observe that the current pound fell below Uptrend line and the inflection line, and has fallen below the dividing point A, by the foreign exchange trend trading method assumptions, confirming that will start a downward trend at present the British pound in the retracement process to form a cloud-capped K-line reversal pattern, is expected to adjust the end of the downward trend is about to unfold at this time we will sell the British pound, stop loss in the stop line (B) Figure 177 is the formation of the British pound cloud-capped K-line reversal pattern after the trend chart 9) piercing pattern piercing pattern is the opposite of the dark cloud cover pattern, for the bottom reversal pattern consists of two candle lines, the first is a long negative, the second low open long positive, and the closing price through the first K-line entity part of 50% through the previous entity of the higher the proportion, the higher the accuracy as shown in Figure 178 in the uptrend, the effective piercing pattern appears at the bottom of the retracement wave and the intersection of the bottom of the main rising wave. Suggests a buy signal as shown in Figure 179 In a downtrend, a valid piercing pattern appears at the intersection of the bottom of the main down wave and the bottom of the adjustment wave, providing a closing buy signal as shown in Figure 180 Example 1: Piercing pattern appears in an uptrend: Figure 181 is the weekly chart of the British pound November 2004 - October 2006 Figure 181 shows that the GBPUSD U.S. dollar has broken through the downtrend line and the inflection line, and break through the demarcation point A, according to the assumptions of the foreign exchange trend trading method, after the confirmation will start an upward trend, the current price level to form a stab reversal pattern, the adjustment is expected to end, at any time will start an upward trend Figure 182 is the pound against the U.S. dollar after the formation of the stab pattern chart Example 2: stab pattern appears in the downtrend: Figure 183 is the pound February 1994-December 1995 February 1994 - December 1995 weekly chart Figure 183 shows that the pound against the dollar has broken through the rising trend line and the inflection line, the previous uptrend has ended, because it has fallen below the dividing point A, so the future will start a downtrend, the current price is close to the inflection line near the formation of the stinger reversal pattern, prompted to close the previous short contract, waiting for the opportunity to sell again Figure 184 is the formation of the sting reversal pattern after the trend chart above explains several K-line reversal pattern in the foreign exchange trend trading method of application (foreign exchange technical analysis www.waihuibang.com/fxschool/technical/) of course, there are many K-line reversal pattern is not mentioned, I just will I in the foreign exchange trend Trading method often used in the K-line reversal introduced to you, if you are interested in candle lines, we recommend that you study in detail the United States Steve Nissen wrote "Japanese candlestick technology" in the foreign exchange trend trading method, the introduction of the K-line, to improve the accuracy of the point of entry, thereby increasing our profit space, relatively reduce the magnitude of losses, thereby improving the performance of foreign exchange trading

Popular Articles

Random Reading

Links