How to judge the rise and fall of currency trading? Are the currency rise and fall controlled by the dealer?

Beginners in the currency circle: How to judge the rise and fall of currency transactions?

Many newbies in the currency circle choose currency trading as an introduction, but the cryptocurrency market fluctuates violently, making it elusive for investors. Accurately judging the rise and fall of the currency price is the key to successful currency transactions. This article will discuss how to comprehensively use a variety of methods to improve judgment accuracy.

Various ways to interpret the rise and fall of currency prices

The rise and fall of the currency price is not determined by a single factor, but is the result of the joint action of various factors such as supply and demand relationship, market sentiment, fundamentals and technical analysis.

• Technical Analysis: Predict future trends by studying historical prices, trading volume and technical indicators (such as moving averages, RSI, MACD, etc.). Observe the changes in indicators and judge the currency price trend and short-term fluctuations.

• Basic analysis: Pay attention to market demand, project background, laws and regulations, etc. Analyze the development of the industry, team strength, policy environment, etc. to judge the long-term trend. At the same time, we need to pay attention to the supply and circulation of currency, which will affect the price.

• News Event Analysis: Pay close attention to global economic indicators, changes in financial policies and risk events (such as international trade frictions, financial crises, etc.), which will trigger market fluctuations and thus affect the currency price.

The rise and fall of the currency price is not entirely controlled by the dealer

Although large institutions or individual investors (usually called "market makers") have a certain influence on the market, the rise and fall of the currency price is not entirely controlled by them. Market prices are mainly driven by supply and demand relationship: more buy orders than sell orders, the price rises; conversely, the price falls. In addition, investor sentiment, expectations, fundamental factors (macroeconomics, policies and regulations, industry trends) and market liquidity will all affect price fluctuations.

The key to improving the success rate of currency transactions

Accurately judging the rise and fall of the currency price will help investors formulate reasonable trading plans, effectively manage risks, and seize profit opportunities. But it should be remembered that the cryptocurrency circle has extremely high risks and price fluctuations are severe. Therefore, be sure to:

• Control risks: Avoid blindly chasing the rise and selling the fall.
• Develop strategies:Develop clear investment strategies and risk control measures.
• Rational allocation of funds: Avoid all-out bets.
• Set the stop loss position: Stop the loss in time to avoid greater losses.
• Seize the opportunity: Choose the right trading opportunity.

In short, successful currency trading requires learning and mastering a variety of analysis methods, combining your own risk tolerance and making prudent decisions, in order to obtain long-term and stable returns in the currency circle.

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