Forex multi-account manager Z-X-N
Accepts global forex account operation, investment, and trading
Assists family office investment and autonomous management

In the field of foreign exchange investment and trading, the moving average (hereinafter referred to as "MA") is one of the commonly used tools in the scope of technical analysis, and its effectiveness is not generalized.

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In fact, the use of too many MAs can easily lead to increased complexity in the analysis process, which in turn leads to hesitation in the decision-making process. For foreign exchange investors with mature trading experience, simplifying the analysis tools and selecting one or a few representative MAs for analysis is often more effective. It is generally recommended that the number of MAs used should not exceed three to avoid over-analysis and confusion.
The effectiveness of the MA is closely related to the clarity of the market trend. In a market environment with significant trends, the MA can serve as a key indicator to indicate the trend direction and assist traders in accurately confirming market dynamics. However, when the market is in a sideways or volatile trend, the reference value of the MA will be greatly reduced. In addition, the reasonable selection of MA parameters is crucial. Smaller moving average parameters, such as short-term moving averages, may be more practical for short-term traders because they can quickly reflect the immediate fluctuations of prices. However, for investors who adhere to long-term investment strategies, the reference significance of short-term moving averages is relatively limited because they pay more attention to long-term price trends and market cycle changes.
It should be emphasized that the moving average is only one of many analysis tools, and its role is to provide a reference dimension for market trend judgment. The final trading decision requires traders to make prudent judgments based on their own trading strategies, comprehensive market analysis, and rigorous risk management. For long-term investors, their goal is to capture major turning points in the market, such as bottoms and tops. In this case, the moving average may not be the core analysis tool. Their decisions rely more on in-depth analysis of market fundamentals, accurate judgment of long-term trends, and the comprehensive use of various other technical analysis tools.
In summary, in foreign exchange investment and trading activities, the application of moving averages needs to be flexibly adjusted according to the trader's investment style, actual market conditions, and trading goals. Reasonable selection and effective use of moving averages, combined with other analysis methods, will help traders grasp market trends more accurately and make more informed trading decisions.

In the field of foreign exchange investment and trading, the importance of learning and knowledge accumulation is self-evident. However, reading a lot alone is not enough to directly create a viable and successful trading ability.

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This phenomenon is quite similar to the relationship between diet and health. It is not simply that the more food you eat, the better your health will be; the key lies in the full digestion and absorption of food, and the use of moderate exercise to maintain the normal functioning of the body. Similarly, in foreign exchange trading activities, learning knowledge is the foundation, but more importantly, it is necessary to deeply understand and internalize the knowledge learned, and to achieve efficient execution in the actual trading process.
Understanding and digestion and absorption, and extensive reading of various books and materials can provide traders with a rich theoretical knowledge reserve and a diverse trading perspective. However, this information needs to be deeply thought and analyzed by individuals, and closely combined with their own trading experience and continuous observation of the market, so as to form a unique understanding and insight. This process is similar to the digestion and absorption of food in the human body. Only nutrients that are fully and effectively absorbed by the body can be transformed into positive factors that promote health and enhance strength.
Trading execution, even if traders have a comprehensive and in-depth understanding of trading theories and strategies, if they cannot accurately execute them in actual operations, these knowledge will not be able to effectively play its due role. Trading execution involves multiple key aspects such as discipline, emotional management, and decision-making ability. Traders need to decisively and firmly implement buying and selling operations in a real market environment based on pre-established trading plans and strategies. This is just like the importance of exercise to maintaining physical health. Only through practical exercise practice can the body maintain full vitality and good health.
In summary, in foreign exchange investment and trading activities, learning knowledge, understanding knowledge, and digesting and absorbing knowledge are the cornerstones of effective trading activities; and effective trading execution is the core link of converting knowledge into actual profits. Traders should focus on the balance between these three, continue to learn new knowledge, gain in-depth insights into market dynamics, and constantly hone their trading skills and decision-making abilities in practice. Through this cyclical process, traders can gradually improve their trading level and ultimately succeed in the complex and ever-changing foreign exchange market.

In the field of foreign exchange investment and trading, accurately identifying the "false breakthrough" phenomenon is a core and critical professional skill.

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A breakthrough refers to a price crossing a specific key technical resistance or support level. However, not all such breakthroughs represent a substantial change or continuation of the market trend. Effectively distinguishing true and false breakthroughs is of indispensable importance for traders to avoid false trading signals and reduce unnecessary losses.
Short-term breakthroughs and long-term breakthroughs.
1. Short-term breakthrough (based on a shorter time interval): When the price breaks through a resistance or support level in a relatively short time span, such a breakthrough has a higher probability of becoming a "true breakthrough". Generally speaking, short-term breakthroughs are usually accompanied by strong market momentum, which indicates that market participants have reached a high degree of consensus on the new direction of prices. For example, if a price level is broken within just a few minutes to a few hours, and the trading volume at the time of the breakthrough is significantly enlarged, this situation can usually be regarded as a strong signal, indicating that the market trend is very likely to continue.
2. Long-term breakthrough (based on a longer time interval): On the contrary, if the price takes a long time to break through a long-standing resistance or support level, such a breakthrough is very likely to be a "false breakthrough". The long-term breakthrough process often means that the market has been engaged in a long-term long-short game around the price level, and the forces of the long and short parties have tended to be balanced. When the final breakthrough occurs, the driving factor behind it may only be short-term market fluctuations or interference factors, rather than a substantial change in market trends. After such a breakthrough, prices usually return to the original range quickly because the force that pushed the breakthrough is not enough to maintain the new price level.
An analogy based on military operations.
This phenomenon can be compared to the surprise attack strategy in military operations. If an army launches an attack on the enemy after a long march, the probability of success is usually relatively low. This is because the army has consumed a lot of energy and resources during the long march, and may be exhausted when it arrives at the target location, and its attack capability is greatly weakened. Similarly, in the foreign exchange market environment, if the price has experienced a long and difficult advancement before breaking through a long-term resistance or support level, it usually means that the market has made multiple attempts around the price level, and each attempt has consumed some market momentum. When the final breakthrough occurs, the force that can push the price forward may no longer be sufficient, so such a breakthrough is very likely to be false.
Practical application level.
In the actual foreign exchange trading process, traders can comprehensively judge the authenticity of the breakthrough by paying close attention to the changes in trading volume at the moment of the breakthrough, the price fluctuation range, and the price movement trend after the breakthrough. If at the moment of breakthrough, the trading volume increases significantly, the price quickly moves away from the breakthrough point, and after the breakthrough, it can be stably maintained above the new price level (for upward breakthrough) or below (for downward breakthrough), then the breakthrough is more likely to be real and effective. On the contrary, if the trading volume is sparse at the time of breakthrough, and the price quickly returns to the original range after the breakthrough, then the breakthrough is very likely to be a false breakthrough.
By using the above method, traders can use market information more efficiently, avoid wasting resources in the case of false breakthroughs, and thus improve the success rate of trading activities.

In the field of foreign exchange investment and trading, the so-called "failed breakthrough" is not simply equivalent to "false breakthrough", but the essence is that the breakthrough strength fails to reach the expected level.

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In this case, foreign exchange investment traders should reserve a certain period of time to wait for the market to verify the effectiveness of the breakthrough. It is worth emphasizing that insufficient breakthrough strength cannot directly determine that the breakthrough is a failure.
In the process of foreign exchange investment and trading, once the market trend is established, it will continue a certain development process based on inertia. From the practical experience of many traders, attempts to pick the bottom and touch the top are common, but the probability of success is extremely low. There is only about one chance to successfully capture the top and bottom in ten operations. Even if it succeeds, it may only touch the top and bottom of a small cycle. Therefore, following the direction of trend continuation, whether facing a significant breakthrough or a relatively small breakthrough, it is a feasible trading strategy to follow the trend.
In the operation link of foreign exchange investment and trading involving moving average breakthrough, although there will still be some cases of failed breakthroughs, from a probabilistic perspective, the possibility of such a situation is relatively low. This is because the moving average reflects the average transaction cost of the market, which has a certain stability and reference value for judging market trends.
In the foreign exchange investment and trading scenario, for the breakthrough situations presented by many candlestick charts, if a comprehensive and systematic observation and analysis can be carried out in combination with the moving average, the success rate of trading operations will be significantly improved, while the probability of failure will be effectively reduced.
In the practice of foreign exchange investment and trading, the stop loss point is usually set below the buy point and above the sell point as a reasonable position. This setting is intended to control risks and ensure that when the market trend does not meet expectations, traders can stop losses in time to avoid further losses.
It should be clearly pointed out that in the scope of foreign exchange investment and trading, breakthroughs are only used as an entry signal, which is not enough to constitute a complete trading system from a professional perspective. A complete trading system should cover multiple key elements such as market analysis, risk control, fund management and trading strategies.
In addition, in foreign exchange investment and trading activities, the use of breakthrough trading methods is often accompanied by higher risks. This trading method requires extremely high market timing. Once there is a sudden change in the market or a false breakthrough signal, traders may face a greater risk of loss.

In the field of foreign exchange investment and trading, god-level traders are undoubtedly extremely scarce and valuable professionals.

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These masters not only have extraordinary market insight and sophisticated trading skills, but also have a profound understanding of the market and keen and accurate perception. In many major economic events, their professional qualities are fully demonstrated. Even in certain specific situations, their market prediction and operation capabilities have surpassed some professional think tanks and government agencies.
This transcendence is by no means accidental. The reason why the god-level trader can reach such an outstanding level is largely due to their sincere love and firm dream for trading. This love drives them to continue to study and study, actively and enthusiastically engage in practice, and always maintain a high degree of enthusiasm and focus on the market. They do not engage in trading activities simply to make a living, but regard trading as an art, a challenge, and even an indispensable part of life. It is this strong motivation from the bottom of their hearts that prompts them to constantly explore and forge ahead in the ever-changing market, continue to break through themselves, and then climb to a height that ordinary people cannot reach.
In contrast, some think tanks and government agencies conduct market analysis and forecasting based on professional responsibilities or work requirements. They may lack the pure love and passion for trading itself, and this difference in emotional level may make them inferior to those real trading masters in terms of sensitivity and decisiveness when facing a complex and changing market environment.
Whether at the national level or in the field of financial institutions, such god-level traders are really needed. Their professional skills and market insights can play a vital role in many aspects such as macroeconomic regulation, financial market stability and international economic competition. They can help countries and institutions to better respond to market fluctuations and accurately grasp investment opportunities, so as to always maintain strong competitiveness and stability in the complex global economic landscape.
Therefore, cultivating and attracting god-level traders in the field of foreign exchange investment and trading is not only an inevitable requirement for the development of the financial market, but also a key component of the national economic strategic layout. By creating a good development environment, building a reasonable incentive mechanism and providing continuous learning opportunities, we can inspire more people with lofty ideals to devote themselves to the field of foreign exchange trading, pursue outstanding achievements and contribute their own strength to the country's economic development.

13711580480@139.com

+86 137 1158 0480

+86 137 1158 0480

+86 137 1158 0480

Mr. Zhang

China · Guangzhou