Technical analysis is mainly used by investors when studying price fluctuations, Various framework methods formed. Its assumption is that investors can rely on past historical price fluctuations, To infer the current trading situation and future price trends, Because technical analysis assumes the latest market information, It has already been reflected through price fluctuations.

There are many advantages to technical analysis. Usually based on technical charts of different financial products, You can find more specific buying and selling points, It is also easy for every investor to learn. And in most cases, the technology market, It reflects all the news changes in the market, After all, individual investors cannot always pay attention to the important factors that affect the stock and foreign exchange markets every day, So changes in the technical market can sometimes allow investors to know in advance about major news events that will or have just occurred, Preparing for position risk management in advance.

There are various applications of technical analysis, Including some common indicators, as RSI, MACD, KD Line, Moving average line, And the combination icons of yin and yang candles, etc, These indicators are helpful for investors to judge the market situation, Further develop buy sell and take profit stop loss strategies.

For example, relative strength index, abbreviation RSI (Relative Strength Index) , Similar to the random oscillation index, It is also used to confirm whether the market is overbought or oversold, Its scale is also from 0 reach 100. under normal conditions, lower than 30 It's just oversold, And beyond 70 It's just overbought, Investors can develop buying strategies when specific assets are oversold, You can also short during overbought periods.

Technical analysis is the process of predicting future price trends by studying past prices and trading data. Technical analysis focuses on the composition of charts and formulas, And by estimating the length of market cycles, Identify buying / Opportunity to sell. According to the selected time span, Can be used within the day (Like minutes, hour) technical analysis, Weekly or monthly technical analysis can also be used. The main content of technical analysis includes:

1) Discovering Trends

    Finding the dominant trend will help you see the overall direction of the market, And it can give you more keen insight. Weekly and monthly chart analysis are most suitable for identifying longer-term trends. Once the overall trend is discovered, You can find trading opportunities within the desired trading time span.

2) Support and resistance

    The support and resistance positions are the points in the chart that experience sustained upward or downward pressure. When these points show a reproducing trend, They are identified as support and resistance. purchase / The best time to sell is when the support is not easily broken / Near the resistance level. however, Once these positions are broken, They will tend to become reverse obstacles. therefore, In a rising market, The broken resistance position may become support for the upward trend; However, in a declining market, Once the support position is broken, It will transform into resistance.

3) Trend lines and channels

     Trend lines are a simple and practical tool for identifying the direction of market trends. An upward straight line is formed by connecting at least two consecutive low points, The extension of a straight line helps determine the path of market movement. conversely, The downward line is drawn by connecting two or more points. The variability of trading lines is to some extent related to the number of connection points.

     A channel is defined as a trend line parallel to the corresponding trend line, Two lines can indicate an upward trend in price, The downward or horizontal fluctuation range.

4) Average line

    The moving average line displays the average price at a specific time within a specific period. Because the moving average lags behind the market, Therefore, it may not necessarily serve as a sign of a trend change. to this end, Moving averages are generally used by combining two different time span averages. The buy signal usually crosses the longer-term average line upwards when the short-term average line crosses the longer-term average line, When a sell signal crosses a longer period average below a shorter period average.