Gold Investment Foreign Exchange Network , May 9th, a mistake in judgment meansa mistake in the operation of the foreign exchange market . Then, how to judge the true and false breakthroughs in foreign exchange speculation ?
(1) A breakout of the closing price is a real breakout
Technical analysts have found that the closing price breaks through the trend line, which is an effective breakthrough and thus a signal to enter the market. Take the downtrend line, the anti-pressure line as an example, if the market price once broke through the anti-pressure line, but the closing price is still below the anti-pressure line, it proves that the market did want to try higher, but the buying orders did not continue, and the selling orders poured in. Until the stock price finally fell back at the close. Such a breakthrough, experts believe that it is not an effective breakthrough, that is to say, the back pressure line is still valid, and the market’s weak trend remains unchanged.
In the same way, the breakthrough of the rising trend line should depend on whether the closing price falls below the trend line. This often happens in chart records: after the trend line is broken, the stock price returns to its original position. This situation is not an effective sail. Instead, it is often a trap in the market.
(2) Principles for judging breakthroughs
In order to avoid mistakes in entering the market, technical analysis experts have summarized several principles for judging true and false breakthroughs:
A. After discovering a breakthrough, observe for one more day
If the stock price continues to develop in the direction after the breakthrough for two consecutive days after the breakthrough, such a breakthrough is an effective breakthrough and a safe time to enter the market. Of course, two days later, the stock price has changed a lot: the stock price to buy is high; the stock price to sell is low, but even then, because the direction is clear and the general trend is set, investors will still make a big difference. It is much better to jump into the market rashly.
B. Note the high and low prices two days after the breakout
If the closing price on one day breaks through the descending trend line (resistance line) and develops upward, and on the next day, if the trading price can cross his highest price, it means that there is a lot of buying follow-up after breaking through the resistance line. On the contrary, when the stock price breaks through the rising trend line and moves downward, if the next day’s trading is below its lowest price, it means that after the breakout line, there is a lot of selling pressure, and it is worth following up and selling.