Category: Money tips Release Date: 2007-07-19
To predict the future trend is the dream of many investors, in order to be able to accurately predict currency movements, we have invented a moving average systems, RSI, KD, MACD ... a lot of investors, immersed in the study of these technical indicators for the "secrecy" unable to extricate themselves, often in the unknowingly walked into the technical specifications for us to set up a "vicious circle", but the market ignored the principal-K line of research.
Any technical indicators are invented, as long as an artificial creation of the technical indicators is bound to have flaws (for example: RSI reaches 80 and above or 20 below we refer to as overbought and oversold, but does not mean that to more than 80 on the RSI is not risen, not fallen below 20 fell, but because of the reasons for the formula resulted in stagflation, or stagnant down, but the exchange rate will not be affected). And any technical analysis means are secondary to our analysis to study the K-line, if the results of the analysis based on index analysis, rather than K-line analysis, there would be upside down results.
The price fluctuations in the foreign exchange market not only reflects the expectations of investors in the market (any analysis of the conclusions should be reflected in the market through the sale - K-line is its manifestations), but also reflects the mentality of traders, long-short fund the balance of power both sides as well as all the market. Therefore, as long as we carefully study and analyze the K line (5,15,30,60-minute chart, days, map, weekly plans, monthly plans), analysis of K-line combinations, they will find a lot of market information from which to achieve a multiplier effect.
For example: What is a K-line in the market place, K-line opening and closing to, K-line physical size, K the length of line under the wire three k-line ... what a combination, this combination is located in what the chart position and This combination is what time period (for minutes, days, map, weekly figure) ... would suggest to tell us a lot of market information. As long as we carefully research and analysis, we can predict the future trends to find the key to open.
Yi Xu Light wrote entitled "Venture Capital and practical analysis techniques" is a study of K-line theory of the book, inside there are many on the K-line graphics, K-line portfolio analysis, simple and easy to understand, perhaps we could sent for a look.
Personally, I follow the more simple and more effective truth. This market is not up is down, not to buy is to sell, do not necessarily engage in a less complicated. If a lot of technical indicators to analyze the sometimes find contradictions between them, the phenomenon, it is because they stop the analysis resulting from a different angle.
Nature is one such peculiar, from simple to complex, and then from the complex back to simple, nothing happened, development, and extinction are to follow this law. The same investment market, investors if they can face a calm state of mind in order to analyze the purity of vision in order to inaction of the way transactions will certainly pay off.
