The essence of technical analysis of indicators
Technical analys East forex cashback of forexcashbackcalculatordicators never predicts the market, it belongs to the category of statistics, giving only a probability analysis, which means that Eastforexcashback indicators cashback forex only give us signals to buy cashbackforexbtc sell, but can not tell us what is bound to happen in the market This is a simple introduction to technical analysis Technical indicators from a broad perspective, there are two completely opposing ideas: one is the trend idea, the other is the finishing idea. The former is to buy because of the rise, the latter is to buy because of the fall. The former is to use the average system as the first trend indicator, the latter is to use the kdj indicator as the first overbought and oversold indicator. In the SSE weekly (daily) line can be found obvious trend characteristics, but in the monthly line can be found obvious cycle finishing characteristics; while in the London copper monthly line can be found obvious trend characteristics, but in the annual line can be found obvious cycle finishing characteristics…… any market in different scales show two kinds of characteristics of trend and finishing, the market is the unity of two contradictions Technical analysis is so Simple in the market scale showing obvious trend characteristics, the use of the average system to grasp the trend of the market, and in the market scale showing obvious finishing characteristics, the use of kdj-type indicators to carry out cycle analysis and stage analysis here obvious trend characteristics is not the absolute trend characteristics, in different stages, this market will also show finishing characteristics, but the trend characteristics are much higher than the finishing characteristics Technical analysis The simple meaning is: choose the scale, take the stage to choose the scale with obvious features, take the cost of the opposite features in a small range (stage) This is the technical analysis will inevitably have defects (cost) of the loess, this defect (cost) is unavoidable Technical analysis is so simple that you can use two lines, at most three lines to send a clear signal to buy and sell simple to use only two indicators It is so simple that the two most classic technical indicator systems can be found in any stock software I would say that technical analysis is not a mystery! I can say responsibly: the average system in the Chinese stock market in the medium-term market analysis has an extremely important use value! To know the weekly (daily) trend characteristics of the SSE index is not impossible to change, but definitely will not change in a long period of time! Since the truth is in the computer screen of the devolution, why we small and medium-sized investors can not achieve profit? Or even a loss of a mess! Where does the problem lie? I hope that everyone seriously answer me a question: is there anyone who can exclusively use the SSE daily expma indicator as their only operating system, and adhere to it for several years? As I said at the beginning: technical indicators belong to the category of statistics and give us only probability analysis, so technical indicators cannot tell us how the market will be! This means that any technical indicator is inherently flawed, and of course I would call it a cost! Perhaps this is where the problem arises: stockholders cannot tolerate such flaws in technical indicators, they always try to pursue perfection! Perhaps it is in this pursuit of perfection that everyone is getting further and further away from success! They are always smarty-pants thinking better, better, more perfect when a stockholder sells a stock through a certain technical indicator, already 20% of space from the highest point then he starts to smarty-pants playing the game of adjusting the parameters of the indicator; when a false signal is issued, he starts to continue to play the game of modifying the parameters he does not understand that (adjusting sensitivity) there is a gain and there is a loss! Some stockholders even after several false signals, the value of this technical indicator will be completely denied so as to completely abandon this indicator, and to find a more perfect indicator! Perhaps human nature is the pursuit of perfection, but of course the technical analysis experts have long been struggling in the above two circles, they began to use other ways to pursue perfection they began to look for more sampling characteristics to expand the technical indicators analysis ideas some to join the volume, some to join the fundamental information and even some experts began to learn to graft different technical indicators to achieve a higher accuracy rate! The good thing is that we live in an era of highly developed technology in the case of computers coming into the home, the work above seems to be starting to become simple so that there are many strange indicators, many of which I have never seen before I am not saying that this high sampling of technical indicators can not improve the accuracy of analysis but the more accurate the indicators, the worse the stability! A little passage of time, a little change in the market, this technical indicator will be eliminated by the market! Perhaps this elimination occurs at the same time as the indicator development stage! Maybe fuzzy and defective than perfection can last forever! Einstein said that the formula to predict the future is bound to have uncertainty! Wave theory and Gann theory, which are not part of the orthodox technical analysis of technical analysis, is indeed a formula for predicting the future! But the reason they can long exist in the market is because these two formulas for predicting the future have uncertainty! (Here I will not talk much about the value and significance of these two non-indicator technical analysis, I just hope you understand that the reason they are perfect, is definitely a vague perfection, with uncertainty of perfection) simple is the beauty, simple is the stability of the hydrogen atom is very simple, but very stable the heavier the atomic nucleus decay faster! Perhaps everyone in the stock market before learning philosophy, learning physics is completely beneficial to the masters in various industries are busy finding the commonality of all things, and do their best to ignore the differences This is a philosophical way of thinking about the problem is to take the complex things, summed up to simple! Biologists have traced the evolution of countless organisms in the world to the origin of single-celled organisms Physicist Albert Einstein, in his later years after discovering the theory of relativity, devoted himself to the study of the Grand Unified Theory (the unification of the four forces of nature) in an attempt to make the world of physics a common place! Of course, he only took one step out of the weak unification theory, perhaps his ideas need to continue to study the future of the universe is not the origin of a simple singularity, the colorful world is not composed of a few elementary particles of course, scientists are not satisfied, but also in search of the commonality of elementary particles! This is the way scientists think and analyze, they find the essence of all phenomena and we? Its embroidering, its adding to it, making simple things complicated! Perhaps our world is the development of two opposite forces, the formation of a colorful world ha ha, this paragraph is a bit off-topic, no interest can be skipped Here I want to say a few words to the technical indicators of the R & D master average system and kdj indicators (the same scale) grafting and can not cultivate the invincible technical indicators, but only let you live forever in the contradictions of the moment! The more analytical ideas the more contradictory indicators there are, the more chances of contradiction, when you get a profit naturally and inevitably absorb a disadvantage! Its funny to think that technical analysis experts can spend their lives improving the accuracy of technical indicators, but refuse to accept the tiny cost! Its like a lady selling sorbet, not focusing on how to increase sales to get more profit! Instead, she puts all her energy into where the wholesale sorbet price is lower, or even where the wholesale sorbet can be had for no money! Ha ha, so how good ah no cost, sales revenue is equal to profit Finally I do I think a very appropriate analogy market is like 5 cards, of which 4 spades 1 hearts there are two ways of gambling: one is to draw to the hearts to earn 10 yuan, and draw to the spades to lose 1 yuan; the other is to draw to the hearts to lose 10 yuan, and draw to the spades to earn 1 yuan market changes (different) is only the black and red ratio and black and red The change of odds! Of course you can choose any gambling method before each gamble Technical analysis can only tell us what kind of gambling method to choose, not how to draw hearts and make $10 on the first try! Or how to alternate between two different ways of gambling to maximize profits! Anyone who is interested can play this game and try using the first gambling method exclusively, the second gambling method, or alternatively which one ends up with more profit?!!! I dont think anyone would be stupid enough to try this boring game, anyway I was bored with experimenting many times unfortunately, most people in the stock market are using the second gambling method! Often people who use the alternate gambling style are likely to lose more due to short term experience! Trading is not an exact science, but an exercise of the mind, a kind of gambling cultivation successful investors, are in the market with no inevitability at all, to find a glimmer of inevitability to achieve the ultimate profit! Often this glimmer of inevitability does not come from the market, but their own strategy! People may think my poker analogy is ridiculous, but if you replace 1 dollar with 10,000 to carry out this game to see if we can three times in a row, or even six times in a row, losing 60,000 in a row and indifferent!!! This is the exercise of the mind!!! The strategy is simple, more critical is the mindset to know that we play the game is knowing the fixed probability! And the market can only give us a general probability, it is impossible to be so clear!