# Technical Indicator - Deviation Rate The 100%cashbackforex cashbackforex (BIAS), referred to as the Y value, forex cashback easy a technical indicator derived from the principle of moving cashbackforexpips Its function is to measure the degree of deviation of foreign exchange from the moving average in the process of volatility, so as to derive the possible rebound caused by the deviation of foreign exchange from the moving average trend during severe fluctuations Its 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 cashback forex the gap between the moving average (1) the method of calculation: Y = (the closing price of the day N days moving average closing price / N days moving average closing price) X100 set up N days parameters can be chosen by their own moving average, the general choice of 6, 12, 24 days, there are also choices of 10, 24 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: forexcashbackeasy 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 in line with the moving average, the deviation rate is zero with the strength of the exchange rate and the rise and fall, the deviation rate has a high and low and The deviation rate is high and low and has a certain function of measuring the market in general, when the positive deviation rate rises to a certain percentage, it means that in the short term, the multiple investment can gain rich profit, and the possibility of retraction becomes larger, it 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, it is a signal to buy (2) Apply the rules: (a) in the weak market, the index is not in line with the 6 (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; the index and the 6-day average deviation rate of -3% or less is an oversold phenomenon, is the time to buy (c) In a weak market, when the index deviates from the 12-day average by +5% or more, it is overbought and a time to sell; when the index deviates from the 12-day average by -5% or less, it is oversold and a time to buy (d) In a strong market, when the index deviates from the 12-day average by +6% or more, it is overbought and a time to sell; when the index deviates from the 12-day average by +6% or more, it is a time to sell; when the index deviates from the 12-day average by +5% or more, it is a time to sell; when the index deviates from the 12-day average by +5% or more, it is a time to buy 12-day average deviation rate of -4% or less for oversold phenomenon, is the time to buy (e) the trend up, there will be a number of high prices, can be sold in the higher price of the positive deviation point; the trend down, there will be a number of low prices, can be bought in the lower price of the negative deviation point (f) rising trend when the negative deviation rate, you can take advantage of the downtrend to buy, it is safer to exit; rising trend when the positive deviation rate, can (g) foreign exchange market when the rate of deviation between the moving average and the maximum percentage, it will be close to zero, is normal (h) when the exchange rate fell wildly, so that the negative deviation rate increased to reach the previous low, short selling can be profitably closed; if you encounter a negative deviation rate close to zero after a sudden rebound, you can do short selling