Those who have participated in trading should all know the term technical analysis, but those who have studied it in depth and believe in it are few; most only skim the surface without understanding the basic principles contained in each candlestick and indicator.
So is technical analysis useful? Is it metaphysics or science? Is it worth your time to study systematically? The answer is definitely yes. Most of those who say technical analysis is useless are due to distorting effects in their usage.
The market is like an endless game, and technical analysis is your interpreter for the market language. It does not discuss macroeconomics or project visions; it only focuses on price, trading volume, time, and space. In simple terms, technical analysis is an attempt to predict future price trends using historical price and trading volume data, somewhat like fortune-telling through charts, allowing you to anticipate market warmth or coldness in advance.
Since there are too many indicators and contents covered by technical analysis, and they can all be found online, I won't elaborate on each one. However, one key point that must be mentioned is the relationship between volume, price, time, and space. If a trader can understand and skillfully apply these concepts, it undoubtedly gives your trading a life-saving charm.
The primary function of technical analysis is to gain insight into market sentiment, identify trends and key positions, and seek trading opportunities. However, it is not flawless; for example, there is lagging, it can be easily manipulated, it is not good at long-term plays, and it fails against black swans.
Technical analysis can only increase probabilities; it is the trader's compass but not a map. It tells you the direction, but which path to take and how to walk it depends on your own judgment. Do not over-rely on it; the market environment and participant structure are changing. Clinging to a certain pattern or indicator that was effective in the past without considering the current reality can lead to significant losses.
In short, it is just a tool, not a deity. If used well, it can help you:
Clarify the market context, no longer be like a headless fly.
Improve the discipline and planning of trading decisions.
Manage risk and protect the hard-earned capital.
Understand its limitations and always respect the market.
Set reasonable stop-losses; do not gamble everything.
#技术分析 #交易心得 #投资策略 #BNB
