Analysis Of Entry Point Of Foreign Exchange Transactions Based On Collaborative Of Indicators In Different Scales

Foreign exchange market is a multi-variable nonlinear system, its internal relationship between each factor complex, leading to abnormal exchange rate fluctuations, while for investors to select an accurate transaction entry point is particularly important. Therefore, this paper puts forward a method of modeling foreign exchange trends to achieve the qualitative analysis which depending on the synergy between the technical indicators at different time scales, and analysis the entry point of foreign exchange market through pattern recognition, so as to provide investors with more accurate transaction entry point.First, according to the main principles of common technical indicators in the foreign exchange market and a variety of forecasting model, analysis the advantages and disadvant-ages of using the pattern formed by a single indicator forecasts in the foreign exchange. Ultimately by analyzing the relationship between the Bollinger Bands indicator, Moving Average indicators, Stochastic Oscillator indicators and the exchange rate to determine the pattern classes in the rise, flat and decline trends of the foreign exchange market in qualitat-ive analysis, after that, determining the membership function of each pattern class by the membership function approximation based on the principle of membership of the fuzzy pat-tern recognition, calculating the degree of membership of each pattern class of the foreign exchange trading point, to establish the foundation for the quantitative analysis of the finan-cial data and achieve the forecast of the trend at a single currency.Second, according to analyze the relationship of the trends in the different time scales, we divided the time segment into long-term time scale, medium-term time scale and short-term time scales, and analyzing the proportion of the prediction in the various time segment in different time scales by AHP, so as to obtain the relationship of the trends between the foreign exchange movements in large-scale and in small-scale, accordingly, it can predict the long-term, medium-term and short-term trends.This method starts from the objective indicators, bases on the collaborative of the indicators to establish common patterns in the foreign exchange movements, according to the basic principles of pattern recognition to achieve forecasting of the foreign exchange market. So as to reduce the subjective factors in the prediction, at the same time, by evaluating the predicted results of the different time segment in different time scales, so as to make the prediction results get more comprehensive, more accurate, and also lay a good foundation for the final determination of the entry point of foreign exchange.