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How to determine the breakout of the trend line

The breakout of the cashback forex forexrebateindonesia has important analytical significance for the choice of buying and selling time, and even Forex rebate king makers tend to take market operations based on the change of the trend line; therefore, it cashbackinforex crucial for investors to know when the breakout of the trend line is a valid breakout or a non-valid breakout In fact, there are often cases when the exchange rate hovers above or below the trend line The following provides some methods of judgment and market principles, but the specific situation still needs to be combined with the specific analysis of the market situation at the time The Forexrebateking of the closing price is a real breakthrough Technical analysts have found that the closing price breakthrough trend line, is a valid breakthrough and therefore a signal to enter the market to the downward trend line that is the counter-pressure line, for example, if the market price once broke through the counter-pressure line But the closing price is still lower than the counter-pressure line, which proves that the market did want to try high, but the buying does not continue to sell discs, so that the exchange rate finally in the closing back down such a breakthrough, experts believe that it is not an effective breakthrough, that is, the counter-pressure line is still valid, the market is still the last change of the light trend Similarly, the breakthrough of the rising trend line, should see whether the closing price falls below the trend line in the chart records often have such a situation: After the breakthrough of the convergence line, the exchange rate back to the original position, this situation is not an effective breakout instead of the market is often trapped in the principles of judging breakthrough In order to avoid market entry errors, technical analysis experts have summarized several principles to determine the true and false breakthrough: A. After the discovery of the breakthrough, more than one day of observation If the breakthrough for two consecutive days after the exchange rate continues to develop in the direction of the breakthrough, such a breakthrough is an effective breakthrough, is a safe time to enter the market. Is a safe time to enter the market, of course, two days after the market, the exchange rate has been a big change: the buy the exchange rate high; the throw the exchange rate low, but, even then, because the direction is clear, the trend has been set, investors will still be great, much better than rashly enter the market B. Pay attention to the high and low prices of the two days after the breakthrough If the closing price of a day breaks through the downward trend line (resistance line) upward development, the next day, if the transaction price can Cross his highest price, indicating that there is a lot of buying after the breakthrough resistance line to follow the opposite, the exchange rate in the breakthrough of the rising trend line downward movement, if the next days trading is below its lowest price, then it means that after the breakthrough of the support line, selling pressure is very high, it is worth to follow the sale C. Reference volume Usually volume is a measure of the market atmosphere, for example, in the market price rose significantly at the same time, the volume also A large increase in volume, which indicates that the market has confidence in the movement of the exchange rate on the contrary, although the market price marked up, but the volume does not increase but decreases, indicating that not many people follow up, the market has doubts about the movement of the party, the breakthrough of the trend line is also the same, when the exchange rate breaks through the support line or resistance line, the volume if the subsequent rise or maintain the usual level, which indicates that after the breakthrough line to follow up more people, the market has confidence in the direction of the movement of the exchange rate However, if the line is broken, the volume does not rise but falls, then we should be careful to prevent the breakthrough and then return to the original position In fact, some breakthrough false signals may be due to some large investors into the market, the large market forced price, such as large investment companies into the market, the central bank intervention, etc. But the market investors do not have many people to follow, false breakthroughs can not change the entire surface potential, if you believe This is similar to the operation of the stock market, but in the specific case of domestic, foreign exchange transactions are more difficult to obtain its volume data, so this point is difficult to carry out for the time being D. Lateral movement In the study of trend line breakthrough, it is necessary to explain a situation: the break of a trend, not necessarily the immediate start of a new trend of the opposite party, sometimes due to the rise or fall too quickly, the market Sometimes, because the rise or fall is too rapid, the market needs to make a slight adjustment, for up and down lateral movement, see Figure 7-11 if the magnitude of the fall is very narrow, the formation of the so-called bull state lateral movement will last some time, sometimes a few days, sometimes a few weeks before the end of technical analysts call the movement for the digestion phase or consolidation phase lateral movement will form some complex graphics after the end of the lateral movement direction is a more complex issue Recognize the nature of the lateral movement to grasp the direction of the exchange rate Sometimes, people do not understand the meaning of the narrow movement of the exchange rate back and forth, the feeling of losing direction In fact, since the lateral movement is the digestion phase, it means that the rising process has greater resistance; down process is supported by the buying, buyers and sellers do not give in to each other, you buy up, I throw down in a breakthrough resistance line up the trip, the lateral movement is a bottoming process, its lateral The greater the degree, the greater the power to throw off the cowhide state rise, and, rising cowhide state is a dense area such as July 1989, the dollar against the yen cowhide up and down, the later, the more cowhide sluggish, the formation of a dull market in mid-February, the dollar suddenly rose through the triangle area, it will be like a wild horse off the rope Mercedes forward, from then on, the cowhide boredom announced the end of the same reasoning, at the end of the upward journey, the market price Sliding downward, there will also be lateral movement lateral movement formed by the dense area, is often the future of the currency rebound resistance area, that is, there is not enough power, the market is difficult to break through the dense area, change the direction of decline
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