Foreign exchange retracement refers to the main force actively returning (falling) to a relevant point to verify the effectiveness of support at a certain price level before the exchange rate rises.
Due to the shrinking volume during retracement and the small but concentrated bearish candlestick, the safer buying point in the foreign exchange market is the retracement buying point.
Is it long or short for the foreign exchange market to retrace to the neck line?
If the market returns to the neck line level, it is basically short selling, because the neck line corresponds to a reversal pattern, such as double heads, double bottoms, head shoulder tops, head shoulder bottoms, etc. When the price breaks through this neck line and stabilizes, a reversal is established.
Therefore, when the market price reaches this neck line again, it becomes a strong resistance line that can be shorted. When successfully stepping back on the neck line, it is necessary to increase the trading volume.
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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