Analysis of the core method of foreign exchange trading review

ask

What aspects do traders usually focus on when reviewing trades after completion? What are the summaries?

answer

I am mainly involved inforeign exchange marketTrading, taking into account fundamental and technical analysis, focuses on medium and long-term operations, and usually carries out a systematic review on weekends.

First, I will pull up the chart for the current week and mark the price fluctuations corresponding to the time when the major fundamental data is released.

Next, conduct fundamental analysis. Observe whether an important data has promoted a trend change in the relevant currency. For example, if the euro has continued to decline, but this week's Eurozone economic data performs well, GDP and inflation indicators are better than expected, resulting in signs of stabilizing against the dollar, this indicates that the market's downward momentum has weakened. At this point, the empty orders accumulated in the previous period can be considered to be closed by 20% or 50% first (this may have been carried out when the positive data was released).

As for whether the market will form an expectation that "the European Central Bank may start to tighten monetary policy, and the euro will usher in a major increase", this needs to be judged in combination with the actual trend of the euro against the dollar. Unless the euro reaches the preset stop loss level, my short orders will continue to be held. After the stop loss is triggered, all positions will be automatically squaring, and then consider turning to the bull direction.

Then it is to sort out the important economic data next week and grasp the release time in advance. When the data is released, it is necessary to pay close attention and plan in advance the coping strategies in both cases that meet expectations and do not meet expectations.

Finally, the technical analysis. Following the above example, the current downtrend of the euro weakens and there is a pullback. If you continue to be bearish, you need to consider where the price will run to increase your position; if you plan to turn to long, where will the early short orders start to gradually position squaring, and where will all positions be cleared and converted to long orders? Where is the stop loss set after entering the market, and how are the positions allocated? These all need to be known. LikePepperstoneSuch platforms also provide a wealth of charting tools to assist with this type of analysis.

By observing the volatility rate, retracement ratio and other data, you can study the flow of funds and market sentiment, anticipate the strength of the current trend, and then analyze the true direction of the market. This part of the content is more complicated and will not be discussed in detail here.

In other words, in fact, the operation this week was basically clear when it was reopened last weekend. It is probably in which range to add or reduce positions, and how to deal with major data when they come out. This weekend's reopening is mainly to review whether this week was carried out according to the established plan. If not, what is the reason? If the trend does not match the previous expectations, what is the reason?

In addition, it is also necessary to observe the initial stages of each long-short conversion. What news did the fundamentals have at that time? What shape did the technical aspects take? Why did this news trigger a long-short conversion? Why did the technical aspects operate in this way? These require long-term accumulation and are most beneficial for the improvement of operational skills.