I. Basic Knowledge of the Forex Market1.1 The Nature and Operating Mechanism of the Forex MarketThe forex market is the world's largest financial market, with a daily trading volume exceeding $6 trillion, operating continuously 24 hours a day (Sydney → Tokyo → London → New York). Its core mechanism is currency pair trading, achieving profits through exchange rate fluctuations. For example, EUR/USD represents buying euros with US dollars, and an exchange rate of 1.1200 means 1 euro is exchanged for 1.12 US dollars. Market participants include banks, institutional investors, hedge funds, and retail traders, who conduct transactions through electronic trading platforms (such as EBS, Reuters), forming a global liquidity network.1.2 Core Terminology AnalysisSpread: The difference between the bid and ask price. The spread for EUR/USD is usually 1-2 pips, which directly affects trading costs. For example, with a spread of 1.5 pips, traders need to pay a hidden cost of $15 per lot (standard lot).Leverage: A tool to amplify capital efficiency. With 100x leverage, a 1% market fluctuation can cause a 100% change in account equity. Beginners are advised to start with low leverage (such as 20x) to avoid excessive risk.Margin: The collateral required for trading, calculated as (lot size × contract size) / leverage. For example, 0.1 lot EUR/USD requires $100 margin at 100x leverage.Lot Size: A standard lot is 100,000 units of the base currency, a mini lot is 10,000, and a micro lot is 1,000. Micro lots are suitable for beginners, allowing single trade risk to be controlled within 2% of account funds.1.3 Major Currency Pairs and Trading HoursMajor Currency Pairs: EUR/USD (Euro/US Dollar), USD/JPY (US Dollar/Japanese Yen), GBP/USD (British Pound/US Dollar), accounting for 70% of global trading volume. These currency pairs have high liquidity and low spreads.Trading Hours: Sydney market (7:00-16:00), Tokyo market (8:00-15:00), London market (16:00-24:00), New York market (21:00-4:00). The overlapping period of London and New York (21:00-24:00) has the highest liquidity and intense volatility.II. Analysis Methods and Strategy Development2.1 Technical Analysis FundamentalsCandlestick Patterns: Identify reversal patterns (such as hammer, engulfing pattern) and continuation patterns (such as flag, triangle consolidation). For example, a hammer appearing at the bottom of a downtrend signals a reversal.Trend Lines: Connect price highs or lows to identify uptrends (higher highs, higher lows) and downtrends (lower highs, lower lows). Breaking a trend line may signal a trend reversal.Support/Resistance Levels: Psychological barriers formed by historical prices. For example, EUR/USD has bounced multiple times at 1.1000, forming strong support.Technical Indicators:Moving Average (MA): The crossover of 50-day and 200-day moving averages (golden cross/death cross) provides trend signals.Relative Strength Index (RSI): Overbought (>70) or oversold (<30) zones indicate reversal o