How to look at the trend chart of foreign exchange rate? Analysis skills of foreign exchange rate trend

For foreign exchange trading, the most basic ability that should be possessed is to learn to analyze the trend of foreign exchange rate. All the transactions we conduct in the foreign exchange market are closely related to the change of exchange rate. So for foreign exchange novices, how should we look at the trend of foreign exchange rate?


The trend of foreign exchange rate is a very complex variable, which is composed of multiple unpredictable factors. Therefore, it is impossible to fully grasp and predict the trend of foreign exchange rate. However, through the exchange rate chart and other auxiliary methods, we can still get a glimpse of the experience in the market.

The price changes in the foreign exchange market can be divided into real-time chart, minute chart, hour chart, daily chart, weekly chart and monthly chart according to different time. Different trend charts have their own unique behavior characteristics and are complex for novices. However, since the emergence of the exchange rate chart is for the convenience of investors to analyze, it is not difficult to master it. The so-called trend chart of foreign exchange rate usually uses the K-line chart, which is the same as the K-line chart of the stock market. It reflects the price trajectory on a two-dimensional plane, with time as the horizontal axis and the exchange rate as the vertical axis.

Looking at the trend chart of foreign exchange rate, we should generally look at it from three aspects.
1. Graphic Trend
Look at the overall running direction of the graph, up, down, horizontal oscillation, combined with previous experience, to judge the future trend.
2. K line information
A single K line or a combination of K lines can provide corresponding information, from which a comprehensive analysis of the future direction can be made.
3. Technical index
Technical analysis indicators such as moving average, relative strength index (RSI), MACD, random index (KDJ) can be added to the trend chart. Through the analysis of indicators, the maximum possibility of future trend can be obtained.

Foreign exchange rate is not just the exchange between two different currencies. Only by learning to look at the trend chart of foreign exchange rate can we have a certain ability to analyze the market changes in the foreign exchange market, which is also an important factor affecting our foreign exchange profitability.

Disclaimer: the content of this article (including but not limited to the text, pictures and other contents) is from the community users' contribution, the viewpoint of this article does not represent the position and viewpoint of this website; if there is any false information or careless infringement of your rights and interests, please contact to inform, and we will correct or delete it as soon as possible after verifying the situation!