Futures investment skills

(4) Application of technical analysis methods

The main means of technical analysis are statistics, mathematical calculation and drawing charts based on historical data of price and quantity. In this sense, there are many technical analysis methods. No matter how the technical analysis method is generated, people are most concerned about its practicability, because our purpose is to use it to predict future price trends, so as to serve investment decisions.

As an investment analysis tool, technical analysis should pay attention to the following issues in application:

① Technical analysis should be combined with fundamental analysis to be used in the domestic futures market. Technical analysis has a high prediction success rate. However, when using technical analysis, we must pay attention to combining fundamental analysis. For commodity futures, the fundamental factor that restricts the price of futures is the supply and demand relationship of commodities, and the fundamental analysis starts from the analysis of the supply and demand relationship. Therefore, technical analysis should be combined with fundamental analysis.

② Pay attention to the comprehensive research and judgment of various technical analysis methods, and avoid one-sided use of a certain technical analysis

Investors should comprehensively consider various technical analysis methods to predict the future, synthesize the results of these methods, and finally come to a reasonable description of the power balance between the two sides. Practice has proved that using a technical analysis method alone has considerable limitations and blindness. If multiple technical analysis methods are applied to get the same conclusion, the chance of making mistakes based on this conclusion is very small, while the chance of making mistakes based on one method is large. In order to reduce your mistakes, you should try to master some technical analysis methods.

③ . The conclusions drawn by predecessors and others can only be used with confidence after being verified by your own practice

Because the futures market can bring huge benefits to people, people who have studied futures for hundreds of years have emerged one after another, with different analysis methods and different styles of using the same analysis method. The conclusions obtained by predecessors and others are obtained under certain special conditions and environments. With the change of market environment, the successful methods of predecessors and others may fail when they are used by themselves.