Technical analysis advantages and disadvantages

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Technical analys East forex cashback method includes chart cashbackforexbtc method forexcashbackcalculator indicator analysis method, its advantages are as follows: 1, simplicity A cashback forex chart to the relationship between various variables and the results of their interaction is clearly expressed, the complex cause-and-effect relationship into a simple price history of the map to see the Eastforexcashback, it is easy to grasp the trend of change and the use of computer graphics, diagrams, read the chart is very convenient, to a variety of Chart program into software, as long as the program input data, graphics immediately visible 2, objectivity Fundamental analysis of materials and data is objective, but forecasters in the price trend analysis often with personal feelings, such as doing a long will consider some of the factors of the market, and even some unfavorable factors as favorable factors and technical analysis is different, regardless of the chart is to buy Signal or sell signal, are objective, not to the will of the trader for transfer 3, clarity in the chart will often appear some of the more obvious double bottom pattern, head and shoulders pattern, their appearance, indicating that the foreign exchange trend may turn here, prompting traders should be ready to trade; the same, some of the main support or average level is broken, often also means a huge opportunity or risk of coming These are the clarity of technical analysis, but clarity is not the same as accuracy 4, flexibility Technical analysis can be applied to any trading medium and any time scale, whether it is to do foreign exchange or stocks, futures and other transactions, whether it is to analyze the trend of the last hundred years or a few hours, the basic technical analysis principles are the same only with the call out of any trading product chart, we can get information about The disadvantages of technical analysis method are as follows: 1, for long-term trend invalid Technical analysis is only to analyze the short-term trend of foreign exchange price changes, determine the long-term trend of the exchange rate or national political policies, economic operating environment, capital market dynamics and other factors, the simple use of technical analysis to accurately predict long-term price trend is more difficult 2, the purchase and sale signal uncertainty in technical analysis, buy, sell There is often a distance between the appearance of the signal and the highest price or the lowest price, and even the reverse trend, the uncertainty of this kind of buying and selling signals, often make traders dare not rashly engaged in, or may make the wrong decision 3, price and time uncertainty Technical analysis is only to predict the total price trend in a period of time in the future, it is impossible to point out where the highest price in the period, it is also impossible to tell the period of In general, technical analysis is good, but also objective things, its master or people if you do not understand the psychological control, capital management, investment skills, market characteristics, etc., the single deposit rely on technical analysis can only be a leg to walk because the theoretical basis of technical analysis is the formation of peoples psychological expectations of the agreed rules, and this rule is In an uncertain trading market, it is more important to maintain a correct operating concept and a good operating mentality than technical analysis.

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