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The technical indicators of foreign exchange - technical indicators method overview


  forexbonusrebate cashback forexdicators have penetrated into the heart of every foreign exchange investor, the real foreign exchange operations have a set of their own customary technical indicator system th forexrebatesbrokers system after a long period of testing, will give us a great help I, the definition of technical indicators method Technical indicators is a term we are already very familiar with, but there is no clear definition of the technical indicators method We provide the following definition according to our underst forexdiscountbrokersing, for the readers reference Technical indicators method is defined as: according to a fixed method of processing the original data, the results of the processing into a chart, and use the chart made of the stock market to develop the market so The original data refers to the opening price, the highest price, the lowest price, the closing price, the volume and the amount of transactions, sometimes including the number of transactions, a total of six or seven other data is not the original data The processing of the original data means that some or all of these data will be shaped, organized and processed, so that it becomes what we want to get different processing parties will produce different technical indicators from this In this sense, we know that how many technical indicators will produce how many ways to deal with raw data; in turn, there are fewer ways to deal with raw data will produce how many technical indicators After the technical indicators are produced, they will eventually be reflected in the charts. From a broad perspective, there are two types of methods to generate technical indicators The first type is to generate new numbers according to a strict and clear mathematical formula. This chapter only introduces the first category, the second category can be examined in the relevant books III. Application rules of technical indicators The application rules of technical analysis are mainly carried out through the following aspects: (1) indicator divergence; (2) the crossover of indicators; (3) the high and low of indicators; (4) the wandering of indicators; (5) the turn of indicators; (6) the blind spot of indicators Indicator divergence refers to the direction of the indicators and the direction of the stock price is not consistent Indicator crossover refers to the indicators The two lines in the intersection of the phenomenon, often referred to as the golden fork and dead fork is this type of situation high and low is the indicator into the overbought and oversold areas indicator of the wandering is the indicator in the state of both in and out, there is no clear judgment of the future direction indicator of the turn is the indicator of the graph of a turnaround, this turnaround is sometimes the end of a trend and the beginning of another trend indicator of the blind spot is the indicator Fourth, the nature of technical indicators Each technical indicator is a specific aspect of the stock market observation through a certain mathematical formula to produce technical indicators, this indicator reflects a certain aspect of the stock market deep connotations, these connotations are difficult to see only through the original data In addition, some of the basic ideas we know very early, but only in the qualitative degree, not quantitative The analysis of technical indicators can be quantitative analysis, so that the specific operation of the accuracy can be greatly improved, for example, we all know that the stock price is constantly falling, down more than always a rebound time and the bottom of the time then to what extent, we can buy it? Only with the qualitative knowledge of the front is not able to answer this question, deviation rate and other technical indicators to a large extent to help us solve this problem, although not 100% of the problem, but at least before we take action from the quantitative aspects to help us V. Technical indicators method with other technical analysis methods of relationship Other technical analysis methods have a common point, that is, only pay attention to price, not If we look at it from a purely technical point of view, there is no volume information, other methods can function normally, as usual, analysis and research, as usual, market forecasts We just say in general terms, to have the volume of cooperation Technical indicators due to a wide variety, so the consideration of many aspects, people can think of, almost all can be reflected in the technical indicators, which is the other technical analysis methods can not be compared. The analysis of technical indicators and judgment, but also often use the basic conclusions of other technical analysis methods, for example, in the use of indicators such as wish J, we have to use the morphology of the head and shoulders, the neck line and double top and other results and the tangent theory of support and pressure lines of the analysis of the technique can be seen in a comprehensive study of various methods of technical analysis is very important, only focus on a method, ignorance of other methods is Six, the application of technical indicators should pay attention to the problems Technical indicators are, in the end, a group of tools, we use these tools to forecast the stock market Each tool has its own range of adaptation and applicable environment Sometimes some tools have very poor results, sometimes the effect is good people in the use of technical indicators, the common mistake is to mechanically copy the conclusions, without asking the conclusions established The first is blindly and absolutely believe in technical indicators, and after the error, to the other extreme, that technical analysis indicators are not useful at all This is obviously a misconception, can only be said that the indicators can not be used as an analogy, a knife in the hands of martial arts masters, the knife will be able to kill the opponent, or the knife, in the hands of people without martial arts skills, may be killed by others. We cant say that the knife is useless, the knife is useful, depending on whether it will be used Each indicator has its own blind spot, that is, when the indicator fails in practice should be constantly summed up, and find the blind spot where it is very beneficial to the use of technical indicators to make fewer mistakes encountered technical indicators fail, sin to put it aside, to consider other technical indicators in general, said There are many technical indicators, and at any time there are a few that can help us, although sometimes they may not be very helpful, but they are better than nothing. Usually the technique used is based on four or five technical indicators, supplemented by other indicators, which have their own habits of choosing four or five technical indicators, it is not good to specify in advance, but, with the good or bad results of the actual battle, these indicators should be constantly changed.
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