The Research On The Trend Of Technical Analysis Of The Euro Against The Dollar At Sight Speculative Trading Strategy

Since the foreign exchange market entered the era of Internet，Individual speculators can whenever and wherever participate in the foreign exchange market，with relatively consistent price which the large institutions get. Foreign exchange market can be shorted, do more, for our country individual speculators with less domestic investment channels, is a better choice. Relative to large institutions, individual speculators have flaws in the aspect of information acquisition and personal psychological control, this is the main reason of individual speculators trading losses.This article start with how to deal with the two defects which individualspeculators have in information acquisition and personal psychological control, usingthe technical analysis theory and tools, establishing a speculative trading of foreignexchange strategy, Selecting the international foreign exchange market price chart in1992-2012euro against the dollar in the foreign exchange market as sample, to testthe trading strategy, it is concluded that individual speculators can get stable profitaccording to the trend of technical analysis theory.The market price charts is that market participants psychological reaction to thefundamental economic trends. The price produced in the information about theeconomic trends and market participants. When the economic trends and marketparticipants do not match, market shocks begin. When the economic trends andmarket participants information match, market price trend begin. When the market isin shock, individual speculators are difficult to achieve trade profit. And when themarket was in a trend, the basic economic trends and market participantspsychological is consistent, using the market price charts is feasible to predict thefuture of economic trends, so as to realize the purpose of predicting the future price.In this paper, the design of trading strategy is to use technical analysis and relatedtools to avoid shock, capture the trend, which make up the lack of individualspeculators in terms of access to information, and make individual speculators occupythe leading position in the foreign exchange market.This paper adopts the14week moving average and the35week moving averagecross established the weekly trend, which established the basic economic trend. Afterthe establishment of the weekly trend, it can expect the future price fluctuation for a period of time to conform to this trend. In this paper, the wave which conform thetrend is called the main wave, which reverse the trend is called the adjustment wave,the conversion between the main wave and the adjustment wave reflected by thespecial three price line. The core idea of trading strategy is to capture the main wavewith the weekly trend.