Category: Money Tips Date: 2006-05-08
As opposed to fundamental analysis, technical analysis in the market to grasp the details of a very big leap. Transactions due to technical analysis a great help, but also led to a lot of elite people who put a lot of energy into this area, which ultimately led to where we can easily find a lot of books on technical analysis and a variety of different theories. The scope of these theories is very wide, there are many or even develop into a four-dimensional, or the metaphysical level. Is very interesting is that each seems to have a very strong theory supported by empirical evidence. It also makes a lot of people have all the technical analysis as their pursuit.
This is not criticism of technical analysis is useless, we should not be completely obsessed with this, a large number of technical analysis, we should also remember that our ultimate goal is out of the technical analysis.
Technical analysis is the mainstay of the market and trading in this market, the crowd mental activity can reach a market limit, its form and rhythm of movement and its direction of movement. Therefore, from this extent it is more realistic than the fundamental analysis because it is closer to the market itself, which constitutes the daily trading, technical analysis can achieve the standard of fundamental analysis is difficult to achieve. One reason, of course, is that technical analysis somewhat more emphasis on quantitative analysis, fundamental analysis is more emphasis on qualitative analysis of the transaction, in particular the financial leverage for the use of a lot of foreign exchange market, quantitative analysis Very often, qualitative analysis of more than practical significance.
However, we can see that technical analysis of strengths at the same time, we will never have to remember is that the market technical analysis, rather than technical analysis determine the market. Will always be market-determined market, technical analysis will not determine the market. This argument will lead us to enter the market in the end what is the problem, we have to remember that the market is one in itself will not produce wealth, but only complete the transfer of wealth in a specific place game populations. Into this place all the games people want to get through this place the property rather than lose the property. But in the end result is always and most of the game not the same as the idea of the crowd, the market can always successful completion of the transfer of wealth, while the completion of the transfer process must show that at least 70% of the investment eventually wrong, lose money, and their property has been re-allocated.
Imagine, we know that make these populations in the elite willing to become the distribution of the object is not an easy thing, the market can do is the only way to make everyone through a variety of errors. Fraud, deception, deceive, use, use, re-use will always be the sole subject of the market. We see at the bottom of the "in" shape to adjust the general response is that the market would have to determine accurate investment eventually because of the frequent up and down price movements have lost confidence and patience to hold the best portrayal, while the bar space and induced multi-phase that is, corresponding to the market some of the investors have lost patience and confidence in the process. Therefore, the important thing is to market itself. As we enter the technical analysis in this area, we should remember that it's just to help us understand the market as a means and tools the most important thing is still the market itself.
