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Data:2009-12-12 2:34
Technical analysis of stock market listed company that is in the secondary market price and volume trend analysis. Is generally only the stocks through a stock in a continuous period of time as well as the K-line trend analysis of changes in volume, so as to arrive investment advice. Technical analysis of the three major assumptions: market behavior reflects all, the price was the trend changes, history will repeat itself. Based on the above assumptions the existence of technical analysis in the practical application of the process should pay attention to three major issues:
Because of the success rate of technical analysis is based on the above three assumptions, so in reality, we should always pay attention to the use technical analysis to do is a historical thing happened to do the statistical conclusion is that the probability of a successful pursuit of the method. Before using any kind of technical analysis approach to investment operations, accompanied by a necessary prerequisite for the success of this approach rate is very high for that sort of situation of the stock market. Some method is suitable for a bull market, and some method can be applied oversold bounce, and some method can be applied for volatility in different ways under different market on the success rate varies. There is no universal method of technical analysis, corresponding to different environments have different methods of operation accompanied.
Investing most investors follow the course of the operation is the most uncertain nature of the investment. Under normal circumstances equity investment of two cases, one is a proactive investment, by analyzing the economic value of listed companies to seek capital premium; the other is a passive investment, you can also call to follow the type of investment, mainly through the investors to follow the pace of the initiative to obtain the speculative gains. Technical analysis of investment on the part of a typical follow-based investment strategy, so the process of investing the inevitable encounter of information asymmetry, as well as for individual stocks to determine the passive. Therefore, using technical analysis stock selection process will inevitably encounter an error to determine the movements of the main body, stop-loss is inevitable.
Volume in the traditional technical analysis will generally be ignored, including the Gann theory, wave theory, and so is not related to trading volume. For the follow-type investments, the most important is the main intervention of the basis, and for the main force, only money is not involved in the situation. Apart from the financial statements of shareholders can be seen in the changes, the volume can also be to some extent reflects the funds out of the situation. So for technical analysis of stocks, the volume of analysis is an indispensable part of it.