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

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In the field of foreign exchange investment and trading, the moving average theory is often misunderstood.

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Some people avoid talking about moving averages. The reason may be that they underestimate the value of moving averages, or they choose to remain silent after deeply understanding the essence of moving averages. The moving average system can be used as an auxiliary tool, and its effectiveness mainly depends on the cycle and market structure, both of which work together to form the trend. There are inherent flaws in the dual moving average system, especially when the moving averages cross, it may cause all profits to be taken away or even losses in the medium trend. If a trade is opened when the moving average crosses, it is very likely to cause heavy losses. In addition, a dual moving average system may face huge and unpredictable retracement risks, such as a sudden sharp drop in price, and when the lagging moving average crosses, losses have already been formed. At the same time, the moving average fluctuates frequently, and in the absence of an obvious trend, such losses are difficult to make up for. Most of the time, there is no significant trend in the foreign exchange investment trading market. While using two moving averages consisting of a specific value and three times its value may make it easier to get in and out of the market, this may only work in trending markets. In a consolidating market, the golden cross of the short-term moving average often just rebounds, and then the price usually falls back, causing losses. Some foreign exchange investment traders may use long-term moving averages to filter these signals. However, long-term moving averages themselves also have volatility problems, making the overall strategy more complex.
The essence of foreign exchange investment and trading is to grasp the overall situation, and technical indicators are only auxiliary tools. Any technical indicator has the possibility of bringing profits, the key lies in how to use it. In different time frames, such as minute moving average and hourly moving average, the effect of using double moving average is quite different. Therefore, the focus of foreign exchange investment and trading discussions should be on foreign exchange strategies and the overall view, rather than technical indicators themselves. The moving average indicator has a lagging nature, and price changes often precede the indicator, which leads to the problem of buying timing in actual operations. In the actual operation process, there are differences between static analysis and dynamic mentality, which may cause operation deformation. The risk of the double moving average system is relatively small because it relies on trends. If the operation direction is wrong, it can be quickly identified, thereby avoiding major mistakes. However, in a volatile market, false signals appear frequently and there are very few real buying and selling points, which requires operators to have higher personal qualities.
In the foreign exchange investment market, the double moving average strategy behaves as a golden cross to buy and a dead cross to sell and close the position in a strong upward trend; in a strong downward trend, a double moving average strategy behaves as a dead cross to sell and a golden cross to buy and close the position. When the consolidation trend is rising, the anti-double moving average strategy is represented by a golden cross with less buying points and a wait-and-see situation with a dead cross; when the consolidation trend is downward, it is represented by a dead cross selling point with a golden cross and a wait-and-see situation. The effectiveness of these strategies depends on the specific market conditions and the operator's execution and judgment capabilities.

After a certain period of trading, many foreign exchange investors will realize that making investment decisions at the junction of shocks and trend extensions is a highly cost-effective point choice.

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For intraday foreign exchange investment traders, the operating strategy under volatile market conditions is usually to buy low and sell high and then close the position, or to sell high and buy low and then close the position. In the trend market, it is expressed as buying high and selling higher to close the position, or selling low and buying lower to close the position.
The reason why there are breakthroughs and false breakthroughs is mainly because there is a mutual game between two forces at the boundary between consolidation and the trend that is about to extend. Those foreign exchange investment traders who hold positions at low or high levels, when the market reaches the boundary, have already made huge profits and lack enough confidence in the market to continue to break through, so they choose to close their positions. Trend-following foreign exchange investment traders who have no positions, when they see the market reaching the boundary, are full of expectations for a market breakthrough, so they open a position. Once the behavior of trend-oriented foreign exchange investment traders chasing the rise or killing the decline is completed, it will help the shock-oriented foreign exchange investment traders to realize their profits after selling or buying. At this time, the shock-oriented foreign exchange investment traders have already made profits, while the trend-oriented foreign exchange investment traders are buying or selling to game the breakthrough.
False breakthroughs occur because the breakthrough buying power of trend-oriented foreign exchange investment traders is less than the power of oscillator-oriented traders to close positions, which leads to the failure of the breakthrough. When the power of the trend group's breakthrough is greater than the power of the shock group's closing position, the breakthrough will be successful. This is a struggle situation where the forces of the two factions are intertwined, so both successful breakthroughs and false breakthroughs are normal phenomena. If you want to obtain this part of the income, you need to have the ability to identify the breakthrough power of the trend school and the closing power of the shock school.
The changes in the situation are extremely subtle, and there is no specific graph that can accurately determine whether a breakthrough will be successful or a false breakthrough will occur. Generally speaking, a strong breakthrough has the highest winning rate, but this situation is rare. Under normal circumstances, a trend that does not even dare to touch the consolidation boundary has the lowest winning rate; there is also a situation where the market extends all the way and directly expands significantly at a high or low level. In this case, few foreign exchange investment traders dare to participate. More often than not, the two sides are stuck in a stalemate before a breakthrough is finally achieved. Therefore, the situation of breakthroughs and false breakthroughs at the consolidation boundary is complex and diverse. If foreign exchange investment traders trade at the consolidation boundary for a long time, they will naturally know under what circumstances the winning rate of breakthrough is high and under what circumstances the winning rate of breakthrough is low. For novices in foreign exchange investment and trading who have no experience at all, expecting a successful breakthrough in one charge is just an unrealistic fantasy. Therefore, when placing orders, foreign exchange investment traders should determine that all breakthroughs that meet their own conditions are true breakthroughs. At the same time, when setting a stop loss, you should consider that all breakthroughs that meet your own conditions are false breakthroughs. If the stop loss level you set is exceeded, you should leave the market in time, even if the market returns to its original position later. Foreign exchange investment traders must realize that from a probability perspective, some of those breakthroughs that meet their own conditions will inevitably fail, which are false breakthroughs in hindsight.
The authenticity of breakthroughs in foreign exchange investment transactions mainly depends on the market environment. If the market environment is in the trend extension stage after the trend has just reversed, there is a high probability that this kind of breakthrough is a real breakthrough, and entering the market at this time is an extremely ideal choice; if the market has experienced a wave of market conditions and a breakthrough occurs, it is recommended to wait and see. Most of them are false breakthroughs, so you should remain cautious and wait and see at this time.
The rules for breakthrough trading in foreign exchange investment are roughly as follows: if the breakthrough is too long and too abrupt, do not chase blindly; if the breakthrough is too weak, it is not advisable to pursue; if the consolidation foundation is not solid, be cautious and wait and see.

Shocking market | Trending market | True breakthrough | False breakthrough

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In financial markets, in foreign exchange trading, in futures trading, in stock trading. For volatile market conditions, it is appropriate to adopt a sell high and buy low strategy. The specific performance is: you can buy when the price is at a relatively low level, and then sell at a high level to close the position; you can also sell when the price is relatively high, and then buy at a low level to close the position.
For trending market conditions, you can use the strategy of chasing ups and killing downs. The specific performance is: when the price is on an upward trend, buy at a high level and expect to sell at a higher level to close the position; or when the price is on a downward trend, sell at a low level and expect to buy at a lower level to close the position. .
The definition of a true breakthrough is: the position strength in the volatile market is less than the position strength ready to join the trend market.
The definition of false breakthrough is: the position strength in the volatile market is greater than the position strength preparing to join the trend market.

In the field of foreign exchange market investment, long-term investors, long-term investors and large-cycle traders adopt long-term investment strategies. Their main goal is to avoid the weaknesses and flaws in human nature and avoid falling into the misunderstandings of short-term trading. This is not limited to The stage of building a position.

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Forex traders generally believe that identifying the sequence of market trends or building a trading system is of great significance. However, many novices mistakenly believe that as long as they have a system, they can trade according to the established rules, including some short-term traders who have been trading for more than ten years but are still losing money. In fact, even if there is no perfect system or ideal trading point, as long as you make the right decision at the right time, it is possible to make profits. On the contrary, if any system is forced to be used at the wrong time, it may lead to invalid losses. The reason most new and experienced Forex traders fail is due to unnecessary financial losses. When traders truly understand this, they will realize that the trading system is simply a reminder tool to remind them how close they are to the best time to trade. Only sound money management at the right time can bring profits.
The certainty of foreign exchange trading lies in the control of foreseeable losses. Traders need to hold on to this certainty while exposing their positions to uncertainty, carefully timing their entries, and allowing time to play out so that positive unpredictable events will ultimately pay dividends for the trader. In different cycles, unpredictable events, large and small, are inevitable for different lengths of time. These events cannot be predicted by any technical means, including machine learning and artificial intelligence, because the interplay between these technologies will create new uncertainties. Therefore, Forex traders do not need to be overly competitive and simply derive benefits from their gamble.
It is crucial for Forex traders to have a deep understanding of the principle of buying low and selling high, which is not directly related to the price itself, but is closely linked to market forces. Price fluctuations are caused by the push or pressure of funds. If you can understand how money affects prices, it will be easier to make a profit. Why Candlestick Analysis Has Advantages Over Technical Indicators? Because when using candlestick charts, traders will naturally focus on changes in market forces, and the push or pressure of funds can be visually observed through candlestick charts. This change directly affects the rise and fall of prices, making it possible to buy low and sell high or sell high and buy low. During the analysis process, a lot of noise can interfere with Forex traders, and filtering out this noise is an important ability. Some traders are still losing money despite being knowledgeable. This is because most of what they know is useless noise, which does not help foreign exchange trading, but will have a negative effect. If you cannot learn to eliminate these interferences, no matter how smart you are, you will be powerless in the face of changes in the foreign exchange market. In Forex trading, endless learning is not always a compliment. Many people have heard that Forex trading should be simple, but many people do not understand why trading should be simple and to what extent.

In the foreign exchange investment and trading market, randomness at the micro level is usually more prominent, while price fluctuations at the macro level show greater inclusiveness and regularity.

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Small-scale foreign exchange investment traders are more susceptible to random events, while large-scale market trends are relatively stable and easier to predict. Therefore, it is often more efficient and convenient for foreign exchange investment traders to adopt investment strategies that pursue general trends because they reduce uncertainty. In small-scale transactions, certainty is relatively low, while in large-scale transactions, regularity is more significant.
For foreign exchange investment transactions, day trading is suitable for novices to practice and consolidate trading strategies and understand the formation of trends. However, its disadvantage is that novices usually need to go through a stage of high frequency and high probability of losses before transitioning to a weekly trading mode. For small funds, long-term transactions are not suitable because profits may be quickly withdrawn or even losses may occur.
Novices in foreign exchange investment and trading are often eager to make quick profits, so they start with small-cycle trading. Only when they truly realize the powerful effectiveness of large-cycle trading will they consciously transition to large-cycle trading. Foreign exchange investment and trading itself is a difficult thing to achieve long-term profits, and the probability of success is inherently low.

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13711580480@139.com

+86 137 1158 0480

+86 137 1158 0480

+86 137 1158 0480

z.x.n@139.com

Mr. Z-X-N

China · Guangzhou

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