K line

It is more commonly used by market investors, and its research methods focus on the combination of K-lines in different time periods to determine the strength of the long and short sides in the foreign exchange market and the maintenance time of the long and short trends, thereby determining the direction of foreign exchange speculation. The K-line was originally invented by the Japanese. The K-line chart is the most important and commonly used auxiliary chart in the current technical analysis methods. Many investors who are new to the foreign exchange market may first come into contact with the K-line chart when learning technical analysis. 

Morphology

It is a method of predicting the future trend of prices based on the trajectory pattern of the price chart in the past period of time. The main patterns include more than a dozen different market patterns such as head and shoulders top, head and shoulders bottom, M-head, and W-bottom. From these different price trajectory patterns, we can roughly judge what kind of environment the foreign exchange market is in, and then provide guidance for our foreign exchange transactions.

Tangent

It refers to the following certain methods and principles in foreign exchange speculation, by drawing some straight lines in the chart composed of price data, which is what we often call tangent lines, and then predicting future foreign exchange price trends based on these tangent lines. In technical analysis, these tangents act as support and pressure. Years of research on the trend of the foreign exchange market have found that the backward extension of the tangent line can restrict the price trend to a certain extent, so it is used by investors to assist in market analysis. In the chart, there are many ways to draw tangent lines, mainly including trend lines, channel lines, golden section lines, etc.

Index

It is necessary to comprehensively consider all aspects of market behavior, establish a mathematical model, give a calculation formula, and then obtain an index value. The value of this indicator can directly reflect the state of the market and provide us with clear directions for speculating in foreign exchange. Commonly used indicators are Relative Strength Index (RSI), Stochastic Index (KDJ), Moving Average Convergence and Divergence (MACD), William Index, etc.

Wave

It is to regard the up and down movement trajectory of the price as the up and down fluctuation of the wave. Since the ups and downs of the blue waves follow the laws of nature, correspondingly, the price fluctuations of the foreign exchange market also follow the laws of the ups and downs. Simply put, the rise is five waves, and the fall is three waves. The inventor and founder of the wave theory is Eliot. Investors often use wave theory to judge current market trends.