Five most commonly used technical indicators for foreign exchange technical analysis

Analysis of foreign exchange technical indicators what are the commonly used technical indicators in Daquan foreign exchange trading?
In foreign exchange trading, investors often use some technical indicators to objectively judge the market and the entry time. The correct use of technical indicators will help investors better analyze the market. So what are the commonly used indicators in foreign exchange trading? The following summarizes the five most commonly used technical indicators of a foreign exchange technical analysis and their functions.

1. MACD
   This foreign exchange index is mainly used to judge the medium and long-term trend in foreign exchange transactions. The index will have a certain lag, but investors can use this lag to objectively judge the market. MACD double line shows that the market is in good position on the 0 axis, otherwise the market is empty, and the double line crossing the 0 axis is a reference signal. It is of great significance to compare the first cross signal of MACD double line after crossing in foreign exchange transaction.
2. KDJ
   This foreign exchange index is a very sensitive index. In the fluctuation of exchange rate, this index will send out cross signals. However, when encountering strong unilateral trend and weak single table trend, the index will be passivated towards the trend side. If KDJ is used alone, KDJ's use skill in foreign exchange trading is to trade according to the trend signal, so that there is no worry of passivation, and it has also carried out the trade with the trend.
3. Moving average
   Moving average is one of the most common indicators in foreign exchange investment. The investor's parameters can be set as 5-day, 10-day, 20-day and 30 day moving average. When the 5-day moving average crosses the 10 day and 20 day moving average, and the 10 day moving average crosses the 20 day moving average, this phenomenon is called the moving average combination golden fork, which is the time for traders to buy; On the contrary, it is called dead cross, which is the time for traders to sell. The moving average is also a sharp tool to judge the trend. When the moving average combination is arranged upward, it is called the bull arrangement, which is the performance of the bull trend. On the contrary, it is the short trend.
4. BOLL
   Boll line is a popular technical index for foreign exchange traders. Boll consists of three lines: upper track, middle track and lower track. Generally speaking, the currency is weak, boll is down, and the K line is running in and near the lower track. When the exchange rate crosses the support line of the lowest track, it will form a short-term small rebound, and it will fall back to the middle track.
   On the contrary, the currency is strong, the trend of brin line is upward, the K line inside is running in the middle track and upper track, the support line of middle track will rebound back to the middle track, while the upper track is resistance. When the fluctuation of exchange rate becomes smaller and smaller, and the upper and lower tracks are narrow, a new round of foreign exchange traders' market may start.
5. RSI
   Relative strength index is one of the commonly used indexes for foreign exchange traders, which can be used to judge overbought and oversold. When RSI is higher than 50, the real market is stronger, and higher than 80, it will enter the overbought area, and it is not suitable to chase more at this time; Less than 50 shows that the market is weak, less than 20 into the oversold area, at this time should not chase empty. When RSI is below 20 and then traverses upward, it can be regarded as a rebound judgment signal. Otherwise, when RSI is above 80, traversing downward can be regarded as a callback signal.
   The above are the five most commonly used indicators for foreign exchange traders to do foreign exchange technical analysis, and for the specific use method, traders need to practice and summarize in the transaction. Indicators are dead, people are alive, and the market is ever-changing. Traders should summarize their own trading system. Indicators can only be used as a reference standard.