In London Bank Investment, many investors will choose to use technical analysis methods to analyze the market and find trading opportunities. However, in the actual application process, many investors have certain misunderstandings about technical analysis methods. Below we Let's discuss what misunderstandings exist in technical analysis in London silver investment, and how to correctly understand technical analysis.
(1) Thinking that technical analysis is omnipotent
Some London silver investors believe in technical analysis methods, thinking that technical analysis is omnipotent in the London silver market and can reflect all market information. In fact, this situation is wrong. Some investors believe that technical analysis methods should be accurate analysis tools, so superstitious belief in the prediction conclusions drawn by a certain analysis method should be abandoned.
There are also investors who believe that every technical analysis method can be applied to any market environment. For example, no matter whether the stock market is trending or not, they still have to look at the moving average, or count waves persistently no matter whether the wave shape is clear or not.
Obviously, the moving average method is generally applicable to the London silver market with a trend, but if it is used in a volatile market, the buying and selling signals it provides are likely to be false signals. If investors use these signals to trade, they will fall into losses Among them, some investors suffered losses in transactions, which is also for this reason.
(2) Ignore the market environment and misuse technical analysis methods.
Some investors do not consider the London silver market environment, and are one-sided and accustomed to applying familiar technical analysis methods, such as the habit of applying moving averages and KD indicators, etc., and lack of research on the application of other analysis methods. Some are still accustomed to using a single analysis method, forgetting the teaching of the originator of technical analysis - Dow Theory ""different analysis methods must be mutually confirmed".
The above are some misunderstandings about the market analysis, I hope to help investors.