Time characteristics of the foreign exchange market

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Next I will combine their understanding of the international foreign exchange market and my investments in this market for many years of experience, from the perspective of trading time for investors to analyze some characteristics of the foreign exchange market. Investors in the foreign exchange market transactions are completed in a time category, or long or short, areas at different times, people's psychological, behavioral and lifestyle have some different areas at different times and therefore in investor trading behavior are also different. For example, the holiday is the foreign exchange market, the more special time category, usually in the holidays before and after the relatively light trade fairs in foreign exchange markets, particularly in some global, the more important holiday, the transaction is scarce.

I invest in the financial markets for many years,,, stock, and many are covered, the characteristics of each market has its own deep experience. Although the main body of each transaction on the market can do a simple understanding that all people - large or small, more or less, or institutions or individuals, or large or small families ... .... This constitutes the main characteristics of the decision of each market has its common, that people's thinking as an investor habits, psychological law, lifestyle and other aspects, shaping the market there are numerous forms. However, other components of the various markets the different, and these factors on people's psychology and behavior of different, but also makes a number of different markets with different characteristics. "How to speculate in foreign currency" for the foreign exchange market, it also has a stock and futures markets does not have some features. For this and grasp the understanding of some of the features that can help us better understand the market itself, from which we can have some investment in this market, and then hunt for profit opportunities. Next I will combine their understanding of the international foreign exchange market and my investments in this market for many years of experience, from the perspective of trading time for investors to analyze some characteristics of the foreign exchange market.

Investors in the foreign exchange market transactions are completed in a time category, or long or short, areas at different times, people's psychological, behavioral and lifestyle have some different areas at different times and therefore in investor trading behavior are also different. Differences in these transactions to determine the foreign exchange market trading hours at a time with another transaction to show some distinctive features. For grasp of the importance of these features, as we sail in the sea, we understand the importance of the characteristics of waves, so that we can Buzhi Yu in the Department of the sea easily Shen Ji. In particular, individual investors as a general, if you can not understand the characteristics of the foreign exchange market, it will easily fall into the well-known large bodies of these characteristics, and use these features for small households are set to trap.

For example, the holiday is the foreign exchange market, the more special time category, usually in the holidays before and after the relatively light trade fairs in foreign exchange markets, particularly in some global, the more important holiday, the transaction is scarce. For example, in the West, Christmas and New Year is the most important holiday of the year, the West generally attach great importance to this festival, it is a good rest and recreation leave time, funds and other large institutions also have traders holiday. Strike can not be sold, disaster sell. Also, because the two holidays approaching, so after these two holidays, during the year are generally the most light foreign exchange market trading time. Therefore, the general this time, fluctuations in foreign exchange markets are not, go on and off the market slightly. But there are also special when the transaction is light, for a small part of the big impact during this period and even manipulate the market to provide a convenient, because he can use much longer than usual for the small amount of money to artificially drive prices toward the direction they expect progress to reach down hunt for profits.

Here I would like to give an example, how the main market during the holidays, thinly traded market characteristics, for less experienced users to set a small trap to make their market appearance of the trick to make a profit analysis. The figure is EUR / at the end of 2004, 10, 1, fell in late 2005, this period of the daily chart. Euro / dollar in mid-October 2004 fell by the end of December 2004, the U.S. dollar due to market worries about the huge trade deficit bearish on the dollar, from the volatile activity break down up down range at the top of 1.2460 record high point of 1.3665, just takes two more months, can be described as sharp gains. In the end of 2004, towards the end of this wave of market, market forces as a cover for their shipments, the use of light holiday trading, market easily made up the two false {figure marked a breakthrough at the a, b two points}, where a point is 1.35 euro faced strong resistance and pre-callback to do after a false breakout. The main advantage of the market is very eye-catching huge candle broke the strong resistance 1.35 resistance line and it seems to tell investors: breakthrough, but behind a wave of big market, quickly follow up on it ... ...; then it, the b points in the graph , that is, December 30, 2004, plate briefly broke through intraday resistance of 1.3650 a few days ago, seems to be telling investors: they broke through, and then follow up on it ... ...

At that time, our experience tells us that this time, it is Christmas and New Year holidays, market transactions are very light, but this time the trends to come out, usually far less reliable when normal trading can not be truly representative of the market trend, because there is not enough investors to enter this market transactions, there was not enough volume to identify trends. The main part of the market will be able to use less capital, the trend of market manipulation. Therefore, we chose to wait and see, rather than follow-up buying. Follow-up of the stock market proves to us how a wise caution. In the December 31, the euro / dollar a short break 1.3650 again in the session after the sharp decline began, a few days later, an even bigger Yinxian constantly, just 6 days to fallen by 600 or thereabouts. Follow-up in the false breakouts stop buying but did not leave time for investors suffered heavy losses, while the market took the opportunity to complete the main purpose of shipping profits.

For those with their own experience properly infer that the breakthrough is a breakthrough for investors false, then the jackpot is a good chance. In December 31 the first Yinxian appears, basically we can safely confirm that the breakthrough in front of a false breakout, and certainly behind the wave of losses, then short the euro admission to hunt a handsome profit.