The reason why the technical analysis system is important is that for a retail investor who has no information at all, it is the fairest and easiest information. The technical trend is completely open. For anyone, it is the first hand and most direct. There is no secret or order here. The great thing about technical analysis is that we can get a reliable operating basis by using the most direct and open data. With the mastery of technical analysis and the rational application of capital management, the market can be defeated effectively for a long time. For ordinary investors, if you want to participate in the market, this is the most stable foundation.
The basic ideas mentioned here are different from those of all previous technical analysis methods.
General technical analysis methods, or use various indicators, or use some nonsense bands, waves, or even Gann, neural networks, etc., all of which are based on some mysterious transcendental premise. For example, in the wave theory, such nonsense as "pushing wave 5" and "adjusting wave 3" is specious and useless in practice, especially for individual stocks. As for Gann's theory, as well as periodic theory, neural network and so on, they all regard some contingencies as inevitable. Theoretically, they are all right. Once used, they are full of mistakes. The support level, resistance level, channel line, third wave and the like can only be used as a good tool for the dealer to cheat the line.
For example, after a stock is newly listed, it goes down five waves and then backhand goes up five waves to form a V shape, which cannot be explained according to the wave theory.
Technical graphics are used to deceive people. The more classic graphics are, the more deceptive they can be.
The reason why the technical analysis system is important is that for a retail investor who has no information at all, it is the fairest and easiest information. The technical trend is completely open. For anyone, it is the first hand and most direct. There is no secret or order here. The great thing about technical analysis is that we can get a reliable operating basis by using the most direct and open data. With the mastery of technical analysis and the rational application of capital management, the market can be defeated effectively for a long time. For ordinary investors, if you want to participate in the market, this is the most stable foundation.
To defeat the market is to defeat your greed, fear and stupidity. If you don't do it, you can't conquer the market. For the market, doing is everything. The ultimate significance of technical analysis is not to predict what the market is going to do, but what the market is doing, which is an immediate intuition. All mistakes in the market are to leave the current intuition and replace it with imagination and emotion.
The market has laws, but the laws of the market are not obvious. More importantly, the law of the market is a dynamic law, which is displayed under the joint force of different levels. Attempts to use simple indicators, bands, waves, patterns, cycles, etc. to predict and grasp can only be wrong. However, it is not impossible to grasp this dynamic law in the current intuition, apply it skillfully, and follow the rhythm of the market.
Original Source: http://blog.sina.com.cn/s/blog_a3abd4740101f20b.html