Detailed explanation and practical application of foreign exchange popularity indicators

A sentiment indicator (AR), like a willingness indicator (BR), is a technical tool for analyzing the market by analyzing historical exchange rates. A sentiment indicator focuses on the opening price to evaluate the sentiment of market transactions, while a willingness indicator focuses on the closing price to measure the willingness of the market to buy and sell. The sentiment indicator is based on the opening price of the day. It comprehensively judges the buying and selling sentiment of the market by comparing the relationship between the opening price and the highest and lowest prices of the day, and then combining the position of the opening price in the exchange rate during a specific period. inGTCForex PlatformTraders can use this indicator to better grasp market sentiment.

(1) Calculation method:

The formula for calculating AR is: the sum of N days (H-O) divided by the sum of N days (O-L).

H: The highest price of the day.

L: The lowest price of the day.

O: The opening price of the day.

N: Set the parameter, usually the value is 26 days.

(2) Application rules:

(A) The AR value takes 100 as the median value and fluctuates between ± 20, that is, when it is in the range of 80 to 120, it usually indicates a consolidation of the market, and the exchange rate trend is stable, without severe fluctuations.

(B) When the AR value is higher, it indicates that the market is active and the sentiment is strong. If the value is too high, you should consider leaving the market in a timely manner. Although there is no absolute standard, when the AR value reaches 150 or more, the exchange rate is often exposed to the risk of correction.

(C) When the AR value goes down, it indicates that the market sentiment is declining. If the value is too low, it means that the exchange rate may have entered the trough area and can be considered for an opportunity. Usually when the AR value is below 70, the exchange rate may rebound at any time.

(D) The buying and selling momentum over a period of time can be observed through the AR curve, which often has the characteristic of reaching a top or bottom ahead of the exchange rate. When used in combination with other technical indicators, the analysis effect will be more remarkable. GTC foreign exchange users can use AR indicators with tools such as trend lines and moving averages to improve the accuracy of judgment.