To see trends, use weekly and daily charts

The function of weekly and daily charts is to help foreign exchange investors recognize trends and cycles. Even if you only make short-term orders that close on the same day, you can't rely solely on hourly charts, let alone inforeign exchange marketIf you want to get more profits, it is very beneficial to operate in the medium and long term. Homeopathic order making is the secret to success in the foreign exchange market. Providing trends and major resistance points is the most important function of the daily chart. In addition, the symbolism of each daily chart straight line: usually, the opening price is very low and the closing price is close to the highest price of the day, which is a buy signal; the closing price and the opening price are flat, which is a signal that the market is waiting and may turn; while the opening price is low, after the price rises, it falls back to the opening price and closes below the opening price, which is a clear downward signal. It should be noted that these signals must be used in combination with other analysis methods for higher accuracy.

In a major rally, there are often some small declines, and the duration of these small declines is usually around a week. Only by studying daily and weekly charts regularly can we avoid being confused by short-term trends.

Homeopathic trading should pay attention to follow up decisively when the trend has just formed, most foreign exchange investors are prone to make the mistake of following up too late in the decline, always thinking that the price is too low, so they continue to buy against the trend, occasionally grasp the rebound opportunity to earn a little, but if you grasp the wrong resistance point, or fail to profit in time position squaring, will be stuck.

Weekly and monthly charts are not just for long-term investors. The function of weekly charts is to reveal not only the general trend, but also the cyclical laws of foreign exchange. For example, before the beginning of 1985, the pound was basically in a downward cycle below the resistance line a, and then continued to rise for 4 years above the support line b, an increase of nearly 9,000 points. Since 1989, the pound has cyclically cycled within the range of 1.5 to 2.0.

Under normal circumstances, if the position of the weekly chart is in the rising cycle, the last weekly chart closes at a high level, and the price breaks through last week's high this week, these are all signs of an increase. The position of the weekly chart in the foreign exchange cycle is very important when judging the trend of the foreign exchange market.

The way to use weapons in the foreign exchange market is to be flexible. For investors who are not very skilled, finding the top and bottom of the market may make foreign exchange speculators bankrupt, but for masters of foreign exchange trading, there are people who use the method of finding the top and bottom, losing small and making big profits, accumulating billions of dollars of wealth. The psychological and behavioral characteristics of the foreign exchange market are not static. Studying these changes at any time and having a good grasp of the market and your own psychological and behavioral characteristics, you will know yourself and your enemy, and you will not be too far away from defeating the foreign exchange market.