What are the three assumptions of technical analysis?

The three assumptions of technical analysis are the basis and premise of the existence of technical analysis, without these three assumptions, technical analysis does not exist, if you do not agree with these three assumptions, it is equivalent to you agree with technical analysis.

The three main assumptions of technical analysis are: market behavior is inclusive and digestive; Evolve in a trending manner; History repeats itself.

Market behavior is inclusive and digests everything.

All fundamental factors will ultimately be reflected in the behavior of the market, which is so large that any country's monetary policy and"Banker"The power is insignificant, and this market can fully reflect the supply and demand relationship of the market.

Evolve in a trending manner;

**Varies according to changes in supply and demand, so there is a pattern to follow. Excessive and selling in the market will lead to the development of the market, and we can analyze the development trend of the market through some technical means to guide our investment behavior.

History repeats itself.

The market does not reflect supply and demand, but it does reflect people's psychology. In the process of chart analysis, we can see that there are too many striking similarities between the fluctuations and the past.

Hello, three assumptions of technical analysis:

1."Market behavior reflects everything".

It means that all the factors that affect the trend will be reflected in the actual transaction data (transactions**, volume, etc.), so we only need to study these transaction data that have appeared.

2."**Trending".

Trend is the objective law of market operation, and it is also people's abstract summary of objective things. Without understanding the trend, our understanding of technical analysis can only stay on the side. The trend refers to the overall direction of the medium and long-term operation, and according to the direction of the trend, it can generally be divided into an upward trend, a sideways trend, and a trend.

3.History repeats itself.

It refers to similar disk patterns that tend to deduce similar late movements. This assumption is well-founded. Empirical studies have shown that the market pattern such as trend and trading volume can well reflect the psychological tendency of investors and the expectation of long or short, so the disk pattern is only a kind of appearance, which inherently reflects the psychological tendency of investors.

The three main assumptions of technical analysis:

1. Market behavior is inclusive of all factors that affect the world: fundamentals.

Political factors, psychological factors and other factors must ultimately be reflected in the first through buying and selling, that is, the first change reflects the supply and demand, and the supply and demand relationship determines the first change.

2. Evolution in a trend wayFor the trend that has been formed, it usually continues to evolve along the existing trend. For example: Newton's law of inertia.

An object keeps its stationary or uniform linear motion when it is not acted upon by an external force.

state). 3. History repeats itself Technical analysis and market behavior have a certain relationship with human psychology, and the ** pattern represents people's bullish or bearish psychology about a certain market through specific charts.

Technical Analysis Selection and Application:

1. The basic analysis method can grasp the **** more comprehensively.

but it is difficult to make a correct judgment on short- and medium-term market movements.

2. The technical analysis method is close to the market, responds quickly to short-term changes in the market, and is intuitive and clear, but the accuracy and reliability are poor (which is also the fundamental reason why it emphasizes the importance of "timely stop loss and error correction"), and it is impossible to judge the long-term trend, especially for the source search macroeconomy.

and policy factors, it is difficult to predict.

3. From the above, it can be seen that fundamental analysis and technical analysis have their own advantages and disadvantages and the scope of application of the remainder. Fundamental analysis can grasp the long-term trend, and technical analysis can provide reference for short-term, selling, and improve the scientificity, applicability and timeliness of market analysis.

and reliability.

State Street Investments tells you about the three basic assumptions of technical analysis: market behavior includes everything, and history repeats itself if it evolves in a trend-worn way. 1.

Market behavior contains everything" forms the basis of technical analysis. There are many factors that affect the change of the market. Take ** as an example:

Macroeconomic situation, financial policy, market size, capital situation, operation of listed companies, psychological factors and knowledge level of shareholders, etc. , which will have an impact on the stock price. The above fundamental factors are sometimes consistent, but more often they are contradictory, and the actual change in stock price is the result of a combination of all fundamental factors.

Therefore, technical analysis is not to study various fundamental factors, but to directly study the results of their synthesis - **. By studying the ** charts and supporting technical indicators, let the market reveal its most likely movements. 2.

The concept of "trending" is at the heart of technical analysis, and market movements can be divided into both trending and non-trending ways. The whole meaning of studying the ** chart is the initial stage of trend development, so as to reveal it in a timely and accurate manner, and tell You Huai to achieve the purpose of trading in line with the trend. Once the market has formed an upward (or down) trend, the next step is often to continue to evolve in the direction of the existing trend, and the likelihood of a U-turn reversal is much smaller.

So in practice, it is necessary to unswervingly follow a given trend until there are signs of the opposite. 3.Technical analysis is actually a statistical analysis of past market changes.

Patterns are represented by a few specific charts. These charts have expressed optimism or pessimism about the market in the past, and they will be equally valid in the future, because the human psyche has always been "easy to change", and history tends to repeat itself.

The three assumptions of technical analysis are the basis for the existence of technical analysis, without which technical analysis would not exist; If you don't agree with these three assumptions, then you don't need to study technical analysis at all The first assumption: market behavior encompasses and digests all information Technical analysts believe that any factors that can affect a commodity are actually reflected in it. As a corollary, what we have to do is to study change.

Because we have no special channels and no inside information, in fact, we look at the market every day, and we are also looking at the ** fluctuations caused by various factors. When one or more pieces of bullish information are known by the market, there may already be a paragraph, why first? Because there is no impermeable wall, there will always be people who will know the information first through various channels, so as to operate first, and then cause **** changes.

That is to say: market behavior is inclusive and digests all information, and all the information here has what you know, and there are also things you don't know at the moment The second big assumption: the market runs in a trend way This is usually said a lot, and everyone knows to follow the trend **.

So the concept of trend is at the heart of technical analysis. Without the existence of the trend, there is no existence of technical indicators, such as MACD, KDJ, MA, CCI, golden cross, death cross, etc., all the buying and selling points that tell you are because the trend has changed to a certain extent. Technical analysis is essentially trend-following, i.e., identifying and following established trends.

For an established trend, the next step is often to continue in the direction of the existing trend, and it is much less likely that it will turn around. This is also the effect of inertia. It can be put another way:

The current trend will continue until the U-turn reverses. When the trend changes, if we continue to subjectively adhere to the original trend to judge the first trend, it will easily lead to a painful failure! The third assumption:

The pattern in which history repeats itself is expressed through graphs, and these graphs represent the psychology of people who are bullish or bearish on a certain market. And human psychology has always been easy to change, and its nature is difficult to change. History repeats itself, but in a different way!

We can look for many similar experiences in history, but don't expect them to be replicated exactly. For beginners, looking at history and comparing history with the present is a shortcut to quickly improve your technical skills.

According to the query of Xicai.com, the three major assumptions are as follows:1. Market behavior covers all information. To put it simply, there are many factors that affect ****, such as:

Fundamental changes, political factors, psychological factors, and the impact of news will all be reflected in the first place.

2. **** moves along the trend. To put it simply, the trend is the core of the analysis of the trend, when a trend is out or ruined, the next step is often the stock price will run along the trend.

3. History repeats itself. To put it simply, after some ** patterns have appeared, these patterns may appear again in the future, and the meaning of Yu Nai is the same.

1. Market behavior is inclusive and digests all information. On the one hand, it shows that the changes in the market reflect the changes in external information, and on the other hand, whether the changes in external information are fully reflected or excessively reflected in the changes also need to be considered;

2. Market operation evolves in a trending manner. from"**Evolution of Nashan Mountain in a trending manner"It can be naturally inferred that for an established trend, the next step is often to continue to evolve in the direction of the existing trend, and the probability of a U-turn and reversal is much smaller;

3. History repeats itself. But in a different way"Reenactment"In reality, no two leaves are exactly the same. Investors often seek investment in similar historical changes"Truth"In the hole, but in the end it is scarred, which also shows that the market is endlessly changing.

The analysis method in the market is nothing more than fundamental analysis and technical analysis, for technical analysis, it is a specific analysis of the market trend from a quantitative point of view, technical analysis has a fixed analysis index, and there are also technical methods that can lead the market. Technical analysis is a very good tool for analyzing the market. What is the content of technical analysis:

Technical analysis is summarized through historical data, following the law of market cyclical trend changes, from the originator of technical analysis, Dow Theory, to the present derived from a variety of technical systems, is nothing more than the cyclical law of the market. Three major assumptions of technical analysis:1

Market behavior is inclusive and digests everything: any change in the market is the internal behavior of the market, and the market behavior or forest can be affected, but the long-term law cannot be manipulated. 2.

Evolve in the direction of the trend: Trends are at the heart of technical analysis, and the market is always following the trend. 3.

History repeats itself but not simply repeats itself: any ** will inevitably appear here after a certain period of time, such as the end of a bull market, and the market will continue to have a new wave of bull market, but it is not a simple repeat of the previous trend. Classification of technical analysis:

1.Indicators: Open the software, we can see a variety of indicators, trends, swings, quantitation, etc., are technical indicators to analyze the market, the design principles of these indicators, most of them are based on statistical principles summarized and designed methods, so hysteresis, indicator passivation phenomenon is inevitable.

2.Tangent indicator: tangent indicator, is through the data chart, draw the corresponding straight line, in order to ** market ** trend, tangent indicators are mainly currently to judge the pressure support of the market, and whether the market is broken, how to run after the break.

3.Pattern: The shape hole is a method that divides it into different market behaviors according to the past period of time in the chart, and the trajectory of the market pattern is the method of the future trend.

There are many kinds of market forms, such as head and shoulders top m head V-shaped bottom and so on: the most typical trading method is naked K trading, which is the most intuitive game of long and short power, which can reflect the process of fighting between the long and short sides of the market in a timely manner, and the use of ** trading, the use of, is also the combination of **, or the meaning of a single **, such as piercing the head and breaking the feet of the evening star Dawn coverage line and so on. 5.

Wave class: Wave theory, according to the wave structure of the market, deduce the future operation trend of the market. The market can be the future, that is, through history.

As a result, a variety of analytical theories have been derived, but no matter what kind of theory, these most basic theories are inseparable from them.