How to control the advantages and disadvantages of technology in gold trading?
Technical analysis may account for the vast majority, and there are many kinds of technical analysis (Dow Theory, wave theory, Gann theory, etc.). In the final analysis, technical analysis is to help investors determine what kind of trend the current market is in, and then follow the trend. Technical analysis is summed up in eight words: up buy down sell, take advantage of the situation.
Technical analysis may not be like the other two types of analysis that the cause and effect of the market is clear and simple. How to control the advantages and disadvantages of technology in spot gold trading? Here is a detailed introduction.
Advantages of technical analysis: technical analysis is a set of self-contained and operable analysis methods. The technical analysis points out that the trend of gold price has rules to follow, and puts forward a set of methods to grasp the rules. This method has a strong explanatory power to the historical trend of price, and also has a certain reference value to predict the future.
The analysis object of technical analysis is simple and intuitive, there are certain models to follow, there are specific images to refer to, and the application is flexible. The trading signals on the technical analysis chart are relatively objective and will not change due to the subjective will of investors, so we should keep rational analysis and neutral attitude.
Lack of technical analysis: technical analysis ignores the decisive factors of basic factors and fails to grasp the law of price movement fundamentally. The validity of the conclusion of technical analysis is mainly based on the same reaction of investors' psychology in the similar environment.
When the trend of gold price may change significantly, the market psychology under the influence of various factors may also change significantly. At this time, ordinary technical analysis often can't get conclusions, or even run counter to the facts. Technical analysis is too simplistic and mechanized to analyze and judge the extremely complex and changeable gold price, and the conclusion is often one-sided and arbitrary.
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