How to make good use of technical indicators

1. Technical indicators extract valuable information from k-lines, and the effectiveness of technical indicators depends on the amount of valuable information extracted. The premise is that k-lines must contain valuable information. If "price inclusive" is established, it is the luck of technical analysts.

2. Every technical indicator has its flaws and misunderstandings. The method used for technical indicators is completely correct. The whole difficulty lies in the fact that the established model can generally only reflect the characteristics of a certain aspect of the market in isolation, and the judgment is often generalized. Technical indicators are not necessary, but high-level application is definitely effective.

3. What you have to do is nothing more than to have a solid foundation to buy and sell and convince yourself with success.

4. Know what it is and why it is. Any basis you use for trading must be aware of its principles, scope of application, and limitations.

5. The principle of simplicity. The simplicity here refers to the simplicity of pragmatism. You should make full use of the computer as a tool to model your correct ideas and express or describe them at a glance. The complexity of the application form will distract your attention, delay time or even forget, and affect your decision.

426. The principle of systematization. The basis for your business must be comprehensive, systematic, and even formalized.

7. Quantitative principles. What really determines your profit or loss is the relative price.foreign exchange marketSome aspects of it are indeed difficult to quantify or uncertain, but you should definitely have a quantitative part of your system. Use a vague approach when applying quantification.

8. The principle of openness. You will make mistakes, and you should constantly improve yourself. Your system should be open, ready to accept what is right and correct what is wrong.

9. The general idea of constructing your own technical indicator operating system should be to know yourself and know your opponent, and it should be easy to use. Knowing your opponent is what others know and you should know. Confidence is to understand your own shortcomings and strive to improve them. Simple to use is to let the computer generate it automatically.

10. Potential line. It can be automatically realized by the self-steering function of the analyst. Because it contains future data, your experience and experience are required when applying it.

11. Morphology. Dow morphology is very complex. How to simplify the complexity, effectively fractal the k-line, see the buying and selling points, and let the computer automatically generate them is a big problem. You must find a way to solve this problem, because it is very important.

12. Resistance and support. Such as the percentage line, it is easy to automatically achieve with analysts. It is recommended that you study the Gann three-day chart, which is automatically generated by the computer and is very practical.