Five golden rules for currency trading!
1. A sudden rise in the wind, a slow decline in the slope - a subtle signal of the dealer's accumulation of chips
When the price of a currency rises rapidly like an arrow from a string, but shows a gentle slope when it falls back, it often indicates that there is a powerful force behind it that is quietly accumulating chips. This is not only a short-term carnival in the market, but also a precursor to the dealer's long-term layout and preparation.
2. The waterfall falls straight down, and the water flows for a long time - the secret trajectory of shipment
On the contrary, if the price of a currency suddenly pours down like a waterfall, but it seems powerless and staggering when it rebounds, this is often a signal that the dealer is quietly retreating and the market is about to turn cold. At this time, investors need to be vigilant to avoid becoming a receiver.
3. The top volume is large, and the change of volume determines the fate; the peak of the infinite, leave quickly and don't be greedy
When the currency price reaches the top, if the trading volume is still active, it may mean that there is still some warmth, but remember not to be blindly optimistic. However, if the top trading volume suddenly decreases, just like the brightest star in the night sky quietly extinguishes, it is the best time to evacuate, and don't be greedy for the last afterglow.
4. The bottom volume is large, wait and see; continuous volume is a good opportunity to enter the market
The volume in the bottom area may be just the calm before the storm, or it may be the darkness before dawn. At this time, investors should remain calm and observe the subsequent trend. But if the trading volume continues to increase, like a ray of warm sunshine in winter, it is a clear signal that funds are quietly flowing in and the market is warming up. Entering the market at this time may catch the first scent of flowers in spring.
5. Emotion as the rudder, consensus as the sail-the ultimate secret of currency speculation
In the vast ocean of the currency circle, emotions are the invisible hand that drives the fluctuation of currency prices, and consensus is the solid foundation for gathering market forces. Investors need to be sensitive to changes in market sentiment and pay attention to the fluctuations in trading volume, because that is the direct reflection of market consensus. Only by finding your own direction in the interweaving of consensus and sentiment can you ride the wind and waves and move forward steadily in this ocean.
Personal opinions are for your reference only. Welcome to add to the discussion!
