Chart analysis of the advantages of: 1, the simplicity a price chart the relationship between the variables and the result of the interaction between clearly show that the complex causality into simple price history maps, to see the potential, it is easy to grasp its change trend, and science and technology developed today, the use of computer graphics, shown in figure, read the figure is very convenient.
All kinds of chart programs into software, as long as the program input data, the graph is clearly visible.
2. Objectivity Although the materials and data of basic analysis are objective, forecasters often have personal feelings when conducting price trend analysis. For example, if they are long, they will consider some factors that are beneficial to the market, and even take some unfavorable factors as favorable factors.
Did short always consider a few light market factors more, regard advantageous factor as unfavorable factor even.
Chart analysis is different, regardless of whether the chart is a buy signal or sell signal, are objective, not to the will of the traders for the transfer.
So the chart analysis is objective.
3. There are considerable risks associated with explicit short-term investments.
But risk and opportunity are always equal, and to avoid risk and make profits, one must keep a close eye on short-term price movements.
A variety of price patterns used in chart analysis, especially typical patterns such as double low (double top) patterns, triangular patterns, etc., can indicate that the trend is likely to turn at this level, and traders should buy or sell at this level, which ensures that short-term investors gain profits and avoid losses.
In general, short-term price changes are the result of the action of relevant factors in a short period, while long-term price changes are the result of the action of various basic factors in a longer period.
Chart analysis is simply a graphical change of analysis, regardless of the various factors and reasons that form such a graph.
Just as short-term price rises do not indicate long-term price rises, short-term price falls do not indicate long-term declines.
Therefore, it is very difficult to accurately predict the long-term price movement by simply using chart analysis.
2, signal confusion signal and the highest price or the lowest price often have a distance, and even appear “trend trap”, which typically reflects the defects of foreign exchange trading technical analysis, so that investors do not dare to engage in racy, otherwise they may make wrong decisions.
3. Price and Time uncertainty Chart analysis is only a forecast of the general future price movement. It is not possible to indicate peaks, peaks and troughs, or the duration of each rise or fall.
The dollar rose on rising risk aversion and gold closed at its highest level in nearly three weeks.
Please pay attention to the specific operation, the market is changing rapidly, investment needs to be cautious, the operation strategy is for reference only.
