According to the past performance of the speculation trend, with the help of certain technical analysis tools to predict the future trend of the exchange rate and determine the market, accident strategy is also measured analysis method.
It is to predict the future trend of market price changes as the purpose, with the graph, chart, form, index of market behavior as the means, using mathematics, statistics, price theory and other theories to analyze and study the market behavior.
1. Dow Jones Theory: As one of the oldest theories, prices can reflect most information in a relatively comprehensive way. The Dow Jones theory, which is mainly developed around the average of the stock market, holds that prices can be interpreted as waves consisting of three types of amplitude — dominant, auxiliary and secondary;
2. Fibonacci recognitions: a widely used group of recognitions based on numerical ratios of natural and man-made phenomena;
3. Elliott wave: Elliott scholars classify prices in a fixed wave pattern.
What is the main content of the analysis?
Find trends, support and resistance positions, lines and channels, averages.
(1) Spot the trend: The first mantra you may hear about technical analysis is that “The trend is your friend.”
Finding the dominant trends will help you see the overall direction of the market and give you more insight — especially when more short-term market movements disrupt the overall picture.
Weekly and monthly chart analysis is best used to identify longer-term trends.
Once you find the overall trend, you can choose the trend over the time span you want to trade.
In this way, you can buy the downside in the upside and sell the upside in the downside.
(2) Support and resistance: Support and resistance levels are points on the chart that experience sustained upward or downward pressure.
The SUPPORT LEVEL IS USUALLY THE LOWEST POINT IN ANY CHART PATTERN (HOURLY, WEEKLY, OR YEARLY), WHILE THE RESISTANCE LEVEL IS THE HIGHEST POINT (PEAK) IN THE CHART.
When these points show a recurring trend, they are identified as support and resistance.
The best time TO buy/sell is NEAR support/resistance levels that are not easily broken.
Once these levels are broken, they tend to act as contrarian barriers.
Thus, in a rising market, broken resistance levels can be supportive of an uptrend;
In falling markets, however, once support levels are broken, they turn into resistance.
(3) Lines and channels: Trend lines are simple and practical tools for identifying the direction of market trends.
An upward line is formed by connecting at least two successive lows.
Naturally, the second point must prevail over the first.
The extension of a straight line helps determine which path the market will follow.
Uptrending is a specific method used to identify support lines/levels.
Conversely, a downward line is drawn by connecting two or more points.
The variability of trading lines is partly related to the number of connections.
It’s worth noting, however, that the points don’t have to be too close together.
A channel is defined as an uptrend line parallel to the corresponding downtrend line.
Two lines can represent corridors of upward, downward, or horizontal prices.
The common properties of a channel that supports a trendline connection point should lie between two connection points of its reverse line.
(4) Averages: If you believe in the “trend is your friend” credo of technical analysis, moving averages can serve you well.
A moving average shows the average price at a particular time in a particular period.
They are called “moves” because they measure at the same time and reflect the latest average.
One drawback of moving averages is that they lag the market and so are not necessarily a sign of a change in trend.
To address this, using a shorter period moving average of 5 or 10 days will provide a better indication of recent price movements than a 40 or 200 day moving average.
Hawkish Fed and Omicron jockeyed for market position as U.S. crude oil opened down nearly 3 percent to hit a new two-week low.
Please pay attention to the specific operation, the market is changing rapidly, investment needs to be cautious, the operation strategy is for reference only.
