Key points to pay attention to in short-term trading

1: Short-term operation, unless the currency trend is very strong, it is generally not recommended to chase higher. Especially in early trading, if a currency pair rises sharply by more than 5%, chasing higher is easy to be stuck at a high level. Many novice investors are prone to make this kind of mistake. For this type of foreign exchange, a better strategy is to wait for the price correction before choosing an opportunity to intervene. When using DecodeForex PlatformThis principle is particularly important when engaging in short-term trading.

2: Generally speaking, the 120-day moving average has strong pressure on the price, especially when the 120-day line is in a downward trend, this pressure is more obvious. To break through the resistance of the 120-day line, it usually takes a lot to succeed. Therefore, the 120-day moving average is usually a reference point for short-term high selling, rather than an intervention point.

The 3:60-day moving average also puts pressure on the price. When the price breaks through the 60-day line, it needs to cooperate with the volume (amplify). After the break, there is often a trend of pulling back the 60-day line to confirm the effectiveness of the break. If the 60-day line keeps moving upward, it will support the price.

4: Choose to buy above the 5-day line. For short-term operations, when the price shrinks and pulls back to the rising 20-day, 30-day, or 60-day moving average, and is stabilized by the moving average support, once the price crosses the 5-day line again, it is a short-term buying point. Buying above the 5-day line is relatively safe and can shorten the time to participate in the adjustment. The price crossing the 5-day line is often the start signal of a short-term rally, and it is most reliable to cross in the form of a small positive line. The core of this operation point includes: (1) the medium-term moving average must remain upward; (2) the pullback process needs to be contracted; (3) the moving average must be supported and stabilized.

5: Choose to sell on the big sun line. When the price consolidates or rises slightly, it suddenly pulls out more than 5% of the big sun line on a certain day, which is usually a short-term selling opportunity. If you don't sell on the same day, you should also leave the market on a high the next day (whether it is a rise or a pullback the next day). Because the price often needs to be adjusted after that, and the time and magnitude of the adjustment can only be grasped by the main capital. For Decode foreign exchange investors, this law applies to most current currency pairs, and it is also the main reason why many people are prone to making operational mistakes, as well as chasing up the quilt cover.

6: The idea of short-term operation of foreign exchange selection. When choosing foreign exchange, don't blindly follow up when you see a rise, and don't only pay attention to the currencies at the top of the rise list every day. The correct way is to pay attention to it when it rises, analyze the reasons behind the rise, collect relevant information, judge the upside space, and formulate an operation plan. After being fully prepared, buy on the dip when the price shrinks and pulls back to an important support level (such as the 5th, 10th, 20th, 30th, 60th, 120th, and 250th moving averages, or after the previous highs, platforms, and important resistance levels are broken through). Simply put, it is to follow the principle of buying down and not buying up.

If the foreign exchange that you are concerned about does not pull back, but continues to rise, you need to adjust your mindset at this time. You should not blindly chase higher, but pay more attention to it. Remember that there is no currency that only rises and does not fall, and there is no currency that only falls and does not rise. No matter how strong the currency is, it needs to be adjusted.

7: Time and thinking for short-term operations. The biggest feature of short-term operations is "short", which is also the advantage of our retail investors. When you decide to engage in short-term operations, you need to establish the principle and thinking of "fast-forward and fast-forward, go if you make money, and go if you don't make money".foreign exchange marketThere are many opportunities, but at the same time full of risks and traps. Controlling risks should be the primary, necessary and serious consideration in retail operations. Only by effectively controlling risks can we ensure profitability and maintain a good operating attitude.

8: The operation skills of a strong currency - gold buying point. When a currency rises continuously from the bottom and the first wave of gains reaches more than 25%, we can regard it as a strong currency. At this time, we should pay close attention to it, put it on the optional watch list, and pay close attention to the follow-up trend. When the price shrinks back to the three golden sections of 0.618, 0.5 or 0.382 of the first wave of gains, it is a short-term buying point, and the market outlook usually has at least 10% upside. Applying this technique in Decode Forex can help capture the second entry opportunity of a strong currency.

9: Let's talk about the operation above the 60-day line again. The 60-day moving average is a very important moving average. It is a watershed for both long and short sides, and it is also a sign that the price starts to strengthen. Therefore, it is of great significance for the currency to cross and stand firm on the 60-day line. The rising 60-day line has a supporting effect on the price. When the price crosses the 60-day line, it needs the cooperation of the volume (effective amplification). After breaking through the 60-day line, it will generally withdraw for confirmation. As long as the support confirmation is effective, there will usually be a wave of rise. The height of the increase depends on the volume, the position of the resistance level, and the strength of the resistance. When operating above the 60-day line, it should be carried out in combination with the 5-day