Category: Money tips Release Date: 2006-06-02
Technical analysis to study the "market movement" itself for the purpose, through the past prices, trading volume of observation to determine what will happen to future market fluctuations in the direction of what the size. All of today is not a profitable trader does not use technical analysis, which is the basis to engage in financial speculation.
Technical analysis has three main points:
1, the market movement that contains all the information; this statement is absolutely right. Marketing campaigns on behalf of all investors in the current market, attitudes and perceptions, it is these different points of view contributed to the market movement. No matter how fundamental, if people do not respond to their, and act, then the fundamentals are worthless, the real work on the price volatility is a strong public groups or individuals resulting from the incident response and behavior, rather than the event itself . All this will eventually be reflected in market movements, is clear that anyone can concoct a lie sketched the market a bright future, but only real money to make the market movement. Second, the price has a tendency in nature; technical analysis of a considerable portion of the trend is to follow. The physics point of view in accordance with the trend of the movement once the formation is more likely to continue than reverse. This is consistent with the habits of human beings look at the problem, in fact the market movement trends do exist, and conform with the trend is a central element of the transaction. Third, history will repeat. Technical analysis by its very nature is the study of human psychology, it is not difficult to explain why a century ago who are still applied graphics. Graphic collection of hopes and fears of investors, which all have been doing so in the future will almost so, because human psychology never changes. Byron in the "恰尔德哈罗德Travels" and reveal a secret history of mankind, "all human stories indicate that the same theme, that is the last to come by; The first is freedom and honor; which are gone, wealth, crime, corruption and brutal finally comes, and history though boundless, the content is exactly the same. ". Technical analysis compared to fundamental analysis mainly has the following two advantages: First, choose the time; because of the fundamental analysis of major research has led to the ebb and flow of supply and demand market, environmental and economic power, so it does not directly face the charts, can not capture the specific admission point. The futures and foreign exchange market adopted a highly leveraged margin system, without a good entry point, even if the method is also looking for might go bankrupt. On the point, technical analysis with fundamental analysis can not match advantage. Second, simplicity and comprehensiveness. Fundamental analysis has to face a lot of data and are fluent in different market-related knowledge in the field, so fundamental analysis is difficult to cope with multiple markets. Principles of technical analysis is applicable to all markets, the chart is also easier to access, technical analysis, this advantage can help the speculators in the current period of calm when the markets are rapidly joining an active market for another profit. Novice learning and carrying out technical analysis applications, should be the following three considerations: First, to study classical method; Classic is the crystallization of human wisdom, which after many years of tests, proved to be correct and effective, and therefore whether it is the right to exclude premise, just give more consideration to how to use it can be. Second, in line with self-analytical methods; hundreds of technical analysis methods, each method has its advantages, but not every method is suitable to be used or the speculators themselves, such as speculators like the short-term trading should be Select sensitive indicators, while the long-term options speculators should have a high winning percentage has been relatively slow targets. Third, the extent and the market co-ordination. Different markets have different analytical methods, different market states also have different coping strategies, speculators should be tested more than before entering the market, summed up a set with the current market with the highest degree of analytical methods. Technical analysis of the errors:
Technical analysis is to help speculators to speculate about the future market direction and magnitude of the right-hand man, but it does not mean 100 percent correct on the technical analysis, technical analysis shows that the future market will occur the probability of a particular situation, such as the average price on the 5th the above, we can infer that the current market is strong, the future is more inclined to rise, but who also can not guarantee the market will definitely rise; technical analysis must be applied flexibly, such as speculators rising trend line support under the purchase, but then the price fell below a rising trend line, this is not that technical analysis of an error, as the trend there is, after all, the end of the day, then sooner or later the trend line is also being below one day, on the contrary below the trend line is a trend reversal signal possible; a Many amateur investors think that technical analysis does not apply to the Chinese market, said that the Chinese market is a serious policy, markets and institutions controlled by the market, this is very wrong because technical analysis is for the market movement itself, so a matter of policy or institution of any action , will eventually be reflected in the market movement.
