Category: Money tips Release Date: 2006-10-10
Alert! Common indicators of miscarriage of justice traps
Speaking of technical analysis, investors are most familiar with is none other than KDJ, MACD, RSI and other technical indicators of the common. Many primary stock market technology textbooks even included in the primary content of these indicators to highlight, and even inseparable from securities qualification exams such content. In fact, these indicators for ordinary investors, although it can play a useful reference for some, but their role has obviously been over-exaggerated, a lot of combat-control study, we can even say that these systems of indicators issued by the more than 50% of the signal is wrong, which we are not as good as the real reference value greater than a coin toss.
Of course, these technical indicators easy to use, intuitive judgments, simply observe "Jin Cha" or "Sicha" seems to be in the future will be able to ebb and flow of information, precisely because of this individual was deeply loved, but here would like to superstition the readers of such indicators friends thought in mind:
First, these indicators of buy sell signal issued by almost all market participants can see, then do the same operation if everyone can be a rewarding experience it? Common sense tells us this is absolutely impossible.
Second, these indicators themselves from a period of time stock figures, but many individual stocks changes in price movements is difficult to ensure that people are not around, just like these indicators can easily be manipulated, but it may become a means of deception.
Third, some people think they can use a combination of different technical indicators to determine (for example, look at the same time, KDJ, RSI and other indicators), to avoid bias, this is actually even more evident in the thinking errors. Because of the operation will determine the conclusions are only two, or right or wrong, each 50% of success or failure, as coin throwing, like, when you throw a coin results do not appear at ease, then even throw three at the same time or even throw the next 10 coins while still allowing them to improve the success rate of how much?
In the market, only? Line movements and trading volume are the most loyal and trusted, even the main to do a little hands and feet will be in? Line graph exposed. Volume, price, time and space these four elements are also written in? Line, which is why a lot of the classic investment theory circulating for centuries, such as Elliott wave theory, Gann series are from the most primitive? Line graph and then development comes from. From this perspective, we want investors to abandon the previous indicators of over-reliance on these technologies and learn the true market language - K-line to control the stock price changes in secret.
