What is the core concept of technical analysis?

The most important content in technical analysis is K-line analysis.

K-line analysis is the basis and core of all transactions. Whether it is the opening price or the closing price, the upper and lower shadow lines have profound meanings.

However, the use of K-line must not be copied mechanically.

The K-line shape bands that appear at different stages of trend star hunting have different meanings. To study the K-line, we must first understand the following points:

(1), the same K-line combination, the credibility of the monthly line cycle must be stronger than the weekly chart, followed by the daily chart

Of course, some investors like to analyze minute charts. After analyzing the foreign exchange and precious metal markets, most investors will think that the shorter the cycle, the stronger the instability of the K-line.

(2) Prices have different meanings at different stages

The bottoming out signal of the gestation line in the oscillating stage has the highest reliability.

Therefore, the interpretation of the Doji and the real part must be analyzed in combination with the trend.

(3), the K-line combination must match the trading volume

Trading volume is the product of the power consumption of both long and short sides. It is not enough to only look at the K-line combination. With volume, the effect will be twice the result with half the effort.

For the key points of the K-line, use nine words to express "big entity, no shadow line, and find a breakthrough"

1. Large entities

 The body is big, the kinetic energy is strong, and the winner is this side.

2. Shadowless

The strength is sufficient, the arrow is on the string, and the price will not turn back when it starts.

3. Find a breakthrough

The entity breaks the boundary, whichever side is broken will be done.

Although the core content is only nine words, it contains a lot of trading essence and firm trading skills of Naked K, which is easy to understand and can be verified repeatedly.

Hope the above content is helpful to you!

       The core concept of technical analysis is to judge changes in market sentiment (human nature) and capital preferences. Sometimes this judgment needs to rely on market sense experience and intuition, and sometimes capital preferences and market sentiment can even be quantified, specifically expressed in volume, price and change in trend.

       If you have time, you can go to review and see some big bull markets supported by fundamentals. You can find changes in market capital preferences and trading intentions, which is the intention of the main capital as the saying goes. Of course, most of the technical analysis for this is based on the judgment of conditional market sentiment.
       Finally, I still want to say that the judgment of changes in market sentiment (human nature) and changes in capital preferences must be based on fundamental analysis.