If you play contracts, you should make good use of the pressure and support levels.
(1) In an upward trend, during the callback process, the negative line of the K-line is weaker than the previous positive line, especially when it is close to the support price, the trading volume shrinks, and then the positive line quickly eats up the negative line, and the currency price rises again. This is effective support.
(2) In an upward trend, during the callback process, the K-line frequently appears negative, and the short-selling force increases. Even if there is a certain rebound near the support line, the takeover is weak, and the currency price will eventually fall below the support line. This is called a market reversal, and you don’t know when to go long.
(3) A sideways market forms near the support line. After a period of consolidation, a large positive line appears. The support line is naturally effective.
(4) A consolidation market forms near the support line. After consolidation, a large negative line breaks through the support line. Investors rush to flee to reduce capital outflow, and the currency price will continue to fall for a while.
(5) The currency price trend breaks through the support line from top to bottom, indicating that the market will change from an upward trend to a downward trend. Generally speaking, if a mid-level downward trend appears in an upward trend, and the market price falls below the support line of the mid-level downward trend, it means that the upward trend has ended; if a secondary downward trend appears in an intermediate upward trend, and the market price falls below the support line of the secondary downward trend, it means that the intermediate upward trend has ended, and the currency price will continue to fall according to the original downward trend.
(6) The currency price touches the support line from top to bottom, but fails to reach or just touches the support level and then turns around and rises. If there is a large trading volume, when there is another downward adjustment, you can trade on the right side to obtain rebound profits.
(7) The price falls below the support line from top to bottom. Once there is a large trading volume, it means that another downward trend has formed. If there is a slight pullback, you should sell the goods to avoid greater losses.
(8) The currency price touches the support line from top to bottom. Although it has not fallen below, there is no trading volume. This indicates that there is no chance of rebound. You should leave the market as soon as possible and wait for an opportunity.
