# The technical side of foreign exchange analysis of the use of the law of deviation

Eastforexcashback cashbackforexbtc (BIAS) - Y value, East forex cashback a moving forexcashbackcalculator principle derived from a technical indicator its function is to measure the degree of deviation of foreign exchange in the process of fluctuations cashback forex moving averages, so that the foreign exchange in violent fluctuations due to deviation from the moving average trend caused by the possible The main principle is: if the exchange rate is far from the moving average, regardless of the exchange rate above or below the moving average, it is possible to converge to the average deviation rate is the performance of the day the exchange rate and the gap between the moving average (1) the method of calculation: Y = (the day closing price - N days moving average closing price / N days moving average closing price) X100 set up N days parameters The moving average can be chosen by itself, generally 6, 12, 24 days, but also 10, 30, 75 days in the actual choice, the general short-term use of 6 days is more effective, the medium-term use of 12 days Deviation rate is divided into positive and negative values: when the exchange rate is above the moving average, the deviation rate is positive; when the exchange rate is below the moving average, the deviation rate is negative; when and moving average The deviation rate is zero when it is consistent with the moving average. With the strength and weakness of the exchange rate and the rise and fall, the deviation rate has high and low points and has a certain function to measure the market in general, when the positive deviation rate rises to a certain percentage, it means that in the short term, more investment can gain a good profit, and the possibility of retraction becomes larger, the appearance is a sell signal; when the negative deviation rate falls to a certain percentage, it means that in the short term, the possibility of rebound will increase (2) Application of the rules: (a) in a weak market, the index and the 6-day average deviation rate of +6% or more is an overbought phenomenon, is the time to sell; the index and the 6-day average deviation rate of -6% or less is an oversold phenomenon, is the time to buy (b) in a strong market, the index and the 6-day average deviation rate of +8% or more is an overbought phenomenon, is the time to sell. (c) When the index deviates from the 6-day average by -3% or less, it is an oversold phenomenon and a time to buy