Using Pagoda Lines to Judge Trading Opportunities

There are many trading technical analysis methods, and each technical analysis method has its advantages and disadvantages. The pagoda line is an analysis method often used by investors. Its function is to record the rise and fall of exchange rates, provide data for speculators and Help them make research and judgment on trends. The pagoda line is shown in the figure through the process of fighting between long and short positions and the change of power. Investors can use this to judge the timing of buying and selling. It is a must-use indicator for many investors to speculate in foreign exchange.

If traders want to make better use of the pagoda line, they must master the following three points:

1. If an investor finds a particularly long flat-bottomed two-color line on the pagoda line in a fast-breaking market, he must immediately execute the buying action;

2. The pagoda line will follow the trend of the exchange rate. If the pagoda line entity has two flat bottoms in a row, and then there is a two-color line with a blue line turning red, investors will buy; after two flat bottoms, If the two-color line from red to blue continues to appear, it is time to sell;

3. During consolidation, if the pagoda line turns red or blue, you can set a stop loss point based on this and decide whether to sell.

In addition, when trading, investors can also combine the moving average system with the pagoda line, so as to give full play to the advantages and functions of the pagoda line. You can use parameters 6 and 18 to set the two moving averages. When the market is above the two moving averages When the foreign exchange market is below the two military lines, it means that it is a good time to sell.