When it comes to the difference between actual technical analysis and general technical analysis, I believe everyone is familiar with this topic, but when it comes to how these technical analysis can help our current transactions, many people may not have thought about this issue carefully. But just to see if it is consistent with your own trading plan. What will the result be? Let's take a look at how the general technical analysis in the market is analyzed, and we will understand the reason.
The analysis process on the market is generally like this, find a large-level cycle, support level, and pressure level, such as 4-hour or sky map, etc. Then the analysis is as follows. If the previous pressure level is broken, it is possible to start an upward trend and run to a certain higher pressure position. The specific point is a certain pressure point. This completes the analysis of the upward direction. The subsequent analysis is, if If it fails to break through the previous pressure level, it may run in a certain range, which completes the analysis of the horizontal direction. Finally, if it breaks the support level, it may start a downward trend and run to a certain lower support level , at a certain point.
So, have you noticed a problem, how many directions are there in the market? One is long direction, one is no direction, that is, sideways, and the other is short direction. That is to say, general technical analysis analyzes all future directions of the market.
Then I ask everyone, if the market really breaks through the previous pressure level and starts to move upwards, do you think the analysts are right? Obviously the analysis is correct! Then if the market does not break through the previous high, fails to break through, and starts to trade sideways, do you think the analyst's analysis is correct? Obviously it is also correct, then break the support level and start a downward market, do you think the analyst is right? Of course it's still right.
Then let me ask you, when can analysts analyze mistakes? Have you ever thought about this question? Obviously, the answer is impossible. Right? How could they make mistakes in their analysis? They have analyzed the possibility of all directions in the market, and traders are just taking their seats. Then this kind of analysis is certainly not wrong, what do you think?
Let's think about it. If let us do the same analysis. To describe the possibility of three trends in the future direction of the market. Do you find this kind of analysis difficult? I believe that people with a certain foundation can easily make such an analysis. Even a simple training with a novice can be done.
However, the question is how much guiding significance does this analysis have for our trading? This is what our actual professional traders are most concerned about.
The answer is that those general technical analysis are really of little help to actual trading. A pure theoretical school that is divorced from actual combat in all walks of life. It is difficult to become an expert in this field. We all know that it is better to travel thousands of miles than to read thousands of books. Reading thousands of books refers to the breadth of knowledge. Depth, on the other hand, can only be gained through persistent execution and practice. Just like the relationship between knowledge and wisdom. Knowledge is like the vast universe without end. As for wisdom, it is in a point or a certain item in a field. A kind of sublimation obtained by concentrated and continuous study and continuous learning.
And most of us traders have learned a lot of technical indicators. However, the accuracy of each technical indicator is not enough. In other words, most people focus too much on the breadth of learning knowledge; while ignoring the depth of specialized research knowledge. They think about all the martial arts in the world are proficient, but each martial art needs a lot of time to train, study and specialize in order to reach a certain level. But our energy is limited. Then think about it, everyone, we want to learn all the martial arts in the world well. What will the final result be? Everyone can make up their own minds.
Let's take a look at how our professional traders do it. On the contrary, we only combine several technical indicators. The application stability of the proficiency of each technical indicator has reached a very high level. Only under this premise can we talk about the consistency of execution. To be precise, it is the consistency of the combined use of several indicators. Of course, a large part of the factors here come from psychological factors in actual combat, and this topic is relatively large. We will not expand on this topic here.
Let's get back to business. So what is the difference between actual technical analysis and general technical analysis? The most important feature of practical technical analysis is that it will provide the main direction during the analysis process. Everyone knows that we must have the main direction in the transaction process, and then our trading model can be traded on this basis. Some people here will say that we must be objective when doing transactions. Are you not subjective? Here I just say a little bit.
Subjective trading is not the same thing as the main direction we are talking about now. Simply explain that our transactions are probabilistic transactions, so we must stand on the side of high probability. It is usually a combination of several indicators to judge whether we are on the side of high probability. So did we make predictions? Of course there is, right, but we predict the main direction through the signals given by objective technical indicators, so have we predicted the future market trend? Not right.
There are a group of people in all walks of life who always feel that what others say is what they think they are. I won't say much here about what is a subjective operation. It takes a long time to explain this issue clearly, so we may discuss it at other times in some of the next audio articles or videos.
Then let's go back to the previous question. The main feature of actual technical analysis is that the main direction will be given during the analysis process. Then, under the premise of taking advantage of the trend, corresponding strategies will be given. For example, specific stop loss strategies, including protective stop loss, specific stop loss points, stop loss methods, handling of false breakthroughs, etc. The second feature of actual technical analysis is the matching of trading systems.
For example, if I am doing trend trading, then your trading system must also be a trend trading system. Only then can you refer to my technical analysis. Only in this way will there be practical value. If my trading system is a trend trading system, and your trading system is a shock trading system. Then my technical analysis report will not help you much, or the help will be relatively small.
Speaking of which, we have come to the end of our content today. Let's sum up the main purpose, that is, when facing common trading analysis, everyone should maintain an objective attitude, and don't blindly use these analysis reports to trade. Even for actual trading analysis, it also requires systematic matching to have reference and operational value.
The trading analysis report itself has very high requirements for the referees. These reports are usually the trading plans of professional traders or the analysis reports made by teachers to train students. The purpose is to help students trade better. Professional traders usually do their own analysis reports in order to clarify their own trading steps. It is rare to read other such analysis reports. Most of those who read the analysis report are novices.
So please be cautious, that’s all for today’s topic, if you have more questions, you can consult the customer service of Mohui Finance. We will answer you as soon as possible. I am Teacher Wu. Goodbye.
Add
