Foreign exchange averages and the use of skills

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What cashback forex forex rebate is one of the most commonly used analysis forexrebatenetworkdicators, which reflects the average cost of the market over a period of time in the past changes in the average line bestforexrebate multiple Whatisforexrebate formed by the average system can provide a basis for determining the market trend, but also can play a role in support and resistance I. The composition of the average line average, according to the different ways of calculation, can be commonly divided into ordinary average, exponential average, smooth Average and weighted averages Here we will mainly introduce ordinary averages and exponential averages Ordinary averages: the ordinary average of the closing price of a certain period of time in the past, such as the 20-day average, is the closing price of the past 20 trading days added together and then divided by 20, to get a value; and then 20 trading days backward to yesterday, the same method to calculate another value, and so on, these values are connected to form An ordinary SMA, an exponential SMA, is formed in the same way as an ordinary SMA, but when calculating the SMA value, the calculation method is different, such as the 20-day SMA, the exponential SMA takes an exponentially weighted average, the closer to the day, the greater the weighting, rather than the average weighting as in an ordinary SMA, so the exponential SMA can reflect the latest changes faster in most cases. There is no absolute advantage or disadvantage, in different stages of operation, the two can reflect different effects, the selection of the experience component is relatively greater personal more accustomed to the use of exponential averages, the combination of multiple exponential averages to assist in determining market trends The following chart is the EUR / USD daily chart reflects the effect of the two different averages, where the averaging parameters are set to 20, where the red averages are ordinary 20-day averages, blue averages are 20-day averages. Blue average for the 20-day exponential average from the picture can be seen, in most cases, the speed of inflection of the exponential average are relatively early than the ordinary average, can relatively faster to keep up with the market trend Note: In general, the average of the calculation price with the closing price, but can also be used according to the different needs of the minimum price, maximum price or opening price Second, the setting of the average system if the multiple have Regular averages are arranged together, which is to form a more helpful analysis of the averaging system in general, when using the averaging system for analysis, the common arrangement of parameters are: A, 5, 10, 20, 30, 40, 50 (equal span arrangement) B, 5, 8, 13, 21, 34, 55 (Fibonacci arrangement) on the basis of these two arrangements, increase 125, 200 and 250 three parameters of the mean Third, the use of the mean system alignment state to determine the market rhythm Mean system alignment state, generally can be divided into convergence, dispersion, parallel three states which convergence state indicates that the market has experienced a unilateral trend after the original momentum digestion or accumulation of new running momentum process, convergence of the longer the time, the more The longer the convergence, the greater the kinetic energy generated; divergence is the convergence of the state is the prelude to the outbreak of kinetic energy; parallel state indicates that the market has been a unidirectional outbreak of kinetic energy, triggering a new unilateral running trend in the unilateral city running rhythm, the cycle of these three states: convergence-〉 divergence-〉 parallel-〉 convergence and in the consolidation city, is reflected in the convergence-〉 divergence-〉 convergence cycle, until the breakthrough occurred  The two basic functions of the average line are 1, the basic signal of the golden fork and dead fork instructions  Here the daily chart of the 5 and 13 two average lines as a golden fork and dead fork issued on the basis of buying and selling signals, from Figure 3 can be found, in addition to the blue circle in the oscillation trend, the two average lines have sustained intimate contact, other times issued by the golden fork and dead fork signal are In different currencies and different time periods, the parameters of the SMA crossover need to be set according to local conditions, can not be generalized, for example, it is not advisable to place the parameters of 5 and 13 directly to the hourly chart of EUR/USD, its relatively high crossover frequency will lead to too much unnecessary trading (profit and loss are within 20 points of the trading signals), and easy to therefore And the loss of homeopathic single 2, the average of the support and resistance of the exchange rate Here we again use Figure 2 to understand the support and resistance provided by the average system when the exchange rate runs below the average system, the average system will play an obvious resistance role, hindering the rebound of the exchange rate; similarly, when the exchange rate stabilized above the average system, the average system will play an obvious support role, this The reason for this role lies in the average calculation of the market cost changes reflected in the way, this support and resistance effect is also known as the average of the repulsive force of course, the average also has an attractive, when the currency unilateral operation process farther away from the average system, the average will also issue a gravitational effect, the average itself to follow the direction of the exchange rate, but also pull the exchange rate retracement Five, the special average The use of the so-called special averages refers to a particular stage can play an obvious more than short watershed averages, in general, we will use it in the unilateral city of the main trend such as the following chart: EUR / USD weekly chart, where the 55-week exponential averages reflect the special more than short watershed effect in the red line that is 55-week exponential averages, in the past long term upward trend played a supporting role many times, and this year the euro fell below this averages After the euro has been maintained after the retracement of this chart is the 4-hour chart of the parameters of the 55 exponential average, held in the picture in the blue box in the course of the unilateral trend, this average played a significant sustained suppression effect, until the average was reversed once after the breakthrough, the euros decline in strength only gradually alleviated most cases, as long as the unilateral trend is formed this special indicative of the average line are present, generally in the small trend guidance significance is not large, mainly used in the large continuity of the trend to assist in the analysis, to assist in determining whether the direction of change or whether there are signs of deceleration of the operation of the search for these special averages, mainly repeated testing, the more times effectively touched, the more the averages will be indicative

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