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

In the financial field of foreign exchange investment, which is full of high uncertainty and complexity, the use of medium-term moving average retracement strategy to carry out trading operations is a mature market trading paradigm widely used among professional investors.

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From the perspective of technical analysis theory, when the market is in a relatively stable and orderly operation state, and the price continues to be firmly above the medium-term moving average for a period of time, if a phased local low point appears, then the price corresponding to the low point shows a clear upward trend, and in the subsequent price fluctuation process, there is a phenomenon of stepping back on the medium-term moving average, thus forming a new local low point. In this case, if the new low point does not break through the previous low point in terms of price level, and the price trend begins to show clear signs of upward reversal, at this time, investors can use the price level corresponding to the previous low point as the key reference point for stop loss based on this typical market pattern feature, and carry out systematic trading planning and risk control layout. In the specific practice of setting stop-loss positions, investors do not need to make overly detailed considerations on the precise value of the stop-loss position, but should participate in market trading activities scientifically based on the risk tolerance framework set by themselves and the reasonable assessment of the potential loss amount.
When using the medium-term moving average retracement trading strategy in foreign exchange investment practice, investors need to focus on the following key points:
First, it is necessary to ensure that the market conditions remain stable above the medium-term moving average throughout the entire trading cycle. This condition constitutes the key cornerstone for the effective implementation of this trading strategy. According to the moving average theory in technical analysis, when the price continues to stabilize above the medium-term moving average, it reflects to a certain extent that the market is dominated by a relatively strong bullish trend. This bullish trend creates a more favorable market environment for subsequent trading operations, reduces the systemic risk in the trading process, and provides a more solid foundation for investors to obtain profits.
Second, it is necessary to pay close attention to the price relationship between the new low point formed during the retracement process and the previous low point, as well as the subsequent reversal trend of the price. This price trend pattern can be regarded as the core indicator for judging whether there are effective trading opportunities in the market. If the new low does not fall below the previous low in terms of price level, and the price immediately starts to reverse upward, it usually indicates that the bullish forces in the market still dominate the market long-short game after a short adjustment period, and the market has the potential to further expand upward space.
Third, pay close attention to the dynamic changes in trading volume during the retracement process. In market trading theory, trading volume, as a key indicator reflecting market activity and investor sentiment, has important reference value. Generally speaking, during the retracement process, if the trading volume shows a trend of gradual reduction, it usually means that the trading enthusiasm of market participants in the short term has cooled down, the market selling pressure has been effectively alleviated, and the market is in a state of energy accumulation and adjustment. This state often provides a relatively positive signal support for the further rise of subsequent prices.
Fourth, when the market is in an upward band, once the price bottom touches the pre-drawn trend line, investors should carefully consider exiting the transaction in time. Although from a theoretical perspective, using trend lines as exit signals has a solid theoretical basis for technical analysis, in the actual foreign exchange market trading environment, the market trend is affected by multiple complex factors such as fluctuations in macroeconomic data, changes in geopolitical situations, and sudden financial events, showing a high degree of nonlinearity and uncertainty, and the exit signal may have a certain degree of lag. Therefore, in the actual operation process, investors need to closely combine the real-time dynamic data of the market, their own accumulated rich trading experience, and accurate assessment of market risks, and use this exit signal flexibly and scientifically to achieve more efficient risk management and maximize investment returns.

In the highly complex and uncertain field of foreign exchange investment and trading, market participants often face the severe challenge of being unable to accurately understand market trends.

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The foreign exchange market is affected by multiple complex factors such as fluctuations in global macroeconomic data, evolution of geopolitical situations, adjustments in monetary policies of various countries, and international capital flows. Its price trend shows a high degree of nonlinearity and randomness, which makes it a very difficult task to accurately judge market trends.
When foreign exchange traders encounter unclear trend judgments during the trading process, expanding the time dimension and magnifying the observation period is an effective strategy from the professional perspective of technical analysis and market cycle theory. By switching the analysis window from a shorter time frame to a longer time span, such as expanding from minute-level charts to hour-level, daily-level or even weekly-level charts, it is possible to effectively filter out the noise interference in short-term price fluctuations, so that the potential market trend can be presented more clearly. This method helps investors capture the main direction of the market and provide a more reliable basis for trading decisions.
In the actual operation of foreign exchange investment transactions, when analyzing candlestick charts at a specific level, investors should not only be limited to the surface interpretation of the candlestick chart pattern at that level, but also need to dig deeper into the rich market information contained in the candlestick charts at a higher level. Candlestick charts at different levels reflect the trading behavior and long-short game situation of the market at different time scales. Low-level candlestick charts can show the details of short-term fluctuations in the market, while high-level candlestick charts reflect more of the long-term trend and macro structure of the market. Through comprehensive analysis of candlestick charts at different levels, and using professional technical analysis methods such as multi-period resonance analysis, wave theory and fractal theory, investors can build a more comprehensive and three-dimensional market picture, so as to more accurately grasp the market dynamics and trends.
In the field of foreign exchange investment and trading, there is a widely recognized rule: the smaller the time level involved in the analysis, the higher the comprehensive quality requirements for investors. In an extremely short time scale, market price fluctuations are more frequent and violent, and are more significantly affected by various micro factors and sudden news. This requires investors to not only have a solid technical analysis foundation, and be able to skillfully use various technical indicators, chart patterns and quantitative analysis models to interpret the market, but also have keen market insight, and be able to capture subtle changes in market sentiment, abnormal changes in capital flows, and potential trading opportunities and risks in a timely manner. In addition, efficient risk control capabilities and accurate decision-making capabilities are also essential. Investors need to make reasonable trading decisions in an instant, and effectively control risks through scientific position management, stop loss and stop profit settings, and ensure the robustness of the investment portfolio. In foreign exchange contract futures trading, due to the institutional design of clear liquidation deadlines, if the market shows a unilateral trend and the price continues to change in a direction that is unfavorable to the investor's position, the investor is very likely to be forced to liquidate before realizing the return on investment. This is because futures trading adopts a margin system. When the margin account balance is lower than the maintenance margin level, the investor will face a margin call notice. If the margin cannot be replenished in time, the broker will force the position to be closed in accordance with regulations. In contrast, the holding period of spot trading is more flexible, and investors can hold positions for a long time without actively closing positions. Since the price trend of the foreign exchange market has certain cyclical and mean reversion characteristics, it is highly likely that investors will have the opportunity to wait until the asset price rises to the return on investment level.
As for the European and American currency pairs, since they occupy a large trading volume in the global foreign exchange market, there are many market entities participating in the transaction, including various institutions and individual investors such as central banks, commercial banks, multinational companies, hedge funds and retail investors, and the liquidity of funds is extremely abundant. This high level of market activity and liquidity makes the price trend of the European and American currency pairs more continuous than other currency pairs. In technical analysis, continuous price trends are more conducive to the use of various technical analysis tools and trading strategies for trend tracking and trading decisions, reducing the trading risks and uncertainties caused by price gaps or discontinuous fluctuations.

In the complex ecosystem of foreign exchange trading, the moving average breakthrough strategy, as a classic and widely used trading paradigm, has long occupied an important position.

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In the dynamic operation of the foreign exchange market, the effective breakthrough of the price on the moving average has always been regarded by market participants as a key entry signal for building long or short positions. However, given the high complexity and uncertainty of the foreign exchange market, the frequent occurrence of pseudo-breakouts has undoubtedly brought significant challenges to traders who adopt this strategy, causing many traders to abandon this trading strategy after many setbacks.
In actual trading operations, for the situation where the price crosses the moving average, professional trading rules require that only the situation where the price is above the moving average system and achieves an effective breakthrough is considered, and a long position is established; while for the situation where the price breaks below the moving average, only the opportunity where the price is below the moving average system and completes an effective breakthrough is focused on, and a short position is established.
Specific to different stages of market trends, when the foreign exchange market shows a clear upward trend, the implementation details of its breakthrough strategy are: when the price breaks through the long arrangement formed by the 10-day, 20-day and 30-day moving averages, a buy signal can be triggered to start a long trading operation. When the market is in a downward trend, the operating standard for the downward breakthrough is: only when the price breaks through the short arrangement formed by the 10-day, 20-day and 30-day moving averages, a sell order is considered to be executed to establish a short position.
To further deepen the application of this strategy, in the refined judgment of the upward trend, there is also a more rigorous breakthrough confirmation method: when the price successfully crosses the long arrangement formed by the 5-day, 15-day, 30-day, 144-day and 169-day moving averages, it is regarded as a strong and effective upward breakthrough signal, and it is more stable to intervene in long transactions at this time. Similarly, in the judgment of the downward trend, when the price breaks the short arrangement formed by the 5-day, 15-day, 30-day, 144-day and 169-day moving averages, it can be identified as a downward breakthrough signal with high reliability, and then implement a short trading strategy.

In the field of foreign exchange investment and trading, the moving average plays a vital role as a key technical indicator with trend indication function.

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In the process of foreign exchange investment and trading, the moving average indicator has significant analytical value and application significance only when it shows a clear bullish or bearish trend. When the market is in a horizontal oscillation stage, the applicability of this indicator will be limited to a certain extent.
In addition, in the practice of foreign exchange investment and trading, it is necessary to comprehensively consider different time periods when using the moving average indicator. For example, when the daily moving average shows a bullish trend, but the hourly period shows a bearish trend, this often indicates that the market will face a short-term adjustment. In this case, investors should patiently wait for the hourly adjustment to end, and wait until it resumes a bullish trend before considering it as a more appropriate time to enter the market and go long.

In the scope of foreign exchange investment and trading, the moving average (MA) as a key technical analysis tool plays an irreplaceable core role in the trend tracking process.

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When the market shows a clear and strong upward or downward trend, whether it is a large-scale trend driven by the macroeconomic background or a local trend derived from the micro market structure, the moving average can provide investors with a very in-depth and forward-looking value reference with its unique calculation logic and data presentation method.
However, when the market enters a consolidation range or is in a sideways consolidation stage, due to the increased randomness of price fluctuations, the trend information reflected by the moving average will be seriously disturbed, and its reference value will show a significant marginal diminishing effect. In such a complex market situation, even if the moving average shows the morphological characteristics of supporting prices at a certain moment, investors still need to maintain a highly prudent attitude and conduct a comprehensive analysis of market signals. Only when the support situation fits the callback stage within a more macro fluctuation cycle and is mutually confirmed with other technical indicators, can it be given a certain degree of trust.
In the trading decision-making system, the moving average is often used as an important signal reference indicator to trigger buy or sell operations. However, it cannot be ignored that because it is calculated based on historical data, there is inevitably a certain degree of lag. In order to effectively avoid this inherent defect, in practical applications, professional investors usually combine moving averages with candlestick pattern analysis. Through this multi-dimensional technical analysis fusion method, it is possible to more accurately understand the changes in market sentiment, the dynamics of capital flows, and the potential laws of price trends, thereby providing investors with solid data support and theoretical basis for making more scientific, reasonable and efficient trading decisions.

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+86 137 1158 0480

+86 137 1158 0480

+86 137 1158 0480

Mr. Zhang

China · Guangzhou