Foreign exchange pullback refers to the situation where the market breaks through an important resistance level upwards (or downwards) and then slightly rebounds downwards (or upwards) to its original position. It is when the market forms a head or shortly after a breakout occurs,
A brief upward recovery occurs, confirming the original head area and break position. After the rebound ends, the exchange rate will continue to seek support in a short-term market trend.
Reverse drawing and rebound are different because after the rebound ends, the market trend has diversity, while reverse drawing is different. The result of reverse drawing is only one, which is to continue to decline.
Because the only outcome after a pullback is a decline, participating in a pullback market requires taking advantage of favorable conditions and engaging in short-term fast in and fast out trading, which means trading in the ultra short term, regardless of profit or loss.
How many types of drawdown are there in foreign exchange trading?
1. After falling below or rising above a certain technical level, it moves in the opposite direction towards the technical level for a short period of time;
2. The intraday rebound is relatively short, usually lasting only 4 to 8 "trading hours".
The commonality between these two types of reverse drawing is that the time is relatively short, so the time left for users to trade is also very short.
Euro/USD quotation; The margin for trading 1 lot at 1.07787 is $269, and the minimum margin for trading 1 lot is $2.69. The profit and loss after fluctuations is $1. Euro/USD specifications: standard contract of 100000, leverage of 400 times, minimum quote quantity of 0.00001.
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