Three Assumptions for the Analysis of Spot Silver Technology in Jingchu Financial Group

Three Assumptions for the Analysis of Spot Silver Technology in Jingchu Financial Group

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The three major assumptions of technical analysis are the foundation for its existence,If there were no assumptions about these three,Technical analysis does not exist;If you don't agree with these three assumptions,So you don't have to learn technical analysis at all

First hypothesis:Market behavior is inclusive and digest all information

Technical analysts believe that,Can affect a certain productfuturesAny fundamental, political, psychological, or any other aspect of price is actually reflected in its price.From this, it can be inferred that,What we must do is study price changes.Because we don't have any special channels,No insider information,So in fact,We look at the market every day,Just looking at the price fluctuations caused by various factors.When one or more bullish information is known by the market,The price may have gone up for some time now,Why did it rise first?Because there is no airtight wall,Someone will always know the information first through various channels,So as to operate first,Which in turn causes changes in stock prices.in other words:Market behavior is inclusive and digest all information,You know all the information here,There are also things you don't know yet

The second hypothesis:Market operation evolves in a trend manner

I usually talk a lot about this,Everyone knows to follow the trend and make stocks.So the concept of trend is the core of technical analysis.There is no trend present,There is no technical indicator present,such asMACD、KDJ、MA、CCIGolden fork, dead fork, etc,The buying and selling points you are told are all due to certain changes in trends.Technical analysis is essentially following trends,The purpose is to determine and follow established trends.

For an established trend,The next step is often to continue evolving in the direction of existing trends,And the likelihood of a reverse turn is much smaller.This is also an inertial action.You can put it another way:The current trend will continue until the turn is reversed.

There will always be a moment of change in the trend,When the trend changes,If we continue to subjectively adhere to the original trend to judge stocks,It can easily lead to painful failure!

The third hypothesis:History will repeat itself

The form of stocks is represented through graphics,And these graphics represent people's positive or negative psychology towards a certain market.And human psychology has always been a state of flux that cannot be changed.History will repeat itself,But it repeats itself in a different way!We can find many similar experiences in historical market trends,But don't expect the market to completely replicate.

For beginners,Read more about history,Comparing history with the present,It is a shortcut to quickly improve technical level.