Stock Technical analysis should avoid five misunderstandings:

In the securities market, the importance of technical analysis is increasingly reflected in the use of technical analysis for operations, we must pay attention to the principles of rationality.

I. Technical Analysis is just a tool, rather than the deviation caused by various subjective and objective factors in the technical analysis process, therefore, it is necessary to use technical analysis at a high starting point. If it is limited by technical analysis, it is prone to errors.

2. The results obtained by technical analysis only indicate that the market is likely to produce this result, or that the market is more likely to reverse or reverse after long-term adjustments, it depends on whether the entire market is likely to reverse at this stage. If there is no possibility of reverse, it can only be a rebound.

3. The market is always right. Do not act against the market. Market trends often have their own rules. The existence of such trends is reasonable and simple, that is, do not reverse the market, to operate in the market direction

4. When there is no technical signal that is obviously reversed in the market, do not operate as much as possible and operate when there is a trend (rising or falling) in the market.

5. market rules are constantly changing, and technical analysis methods are constantly changing. when most people find market rules or technical analysis methods, this market tends to reverse

Avoid the following mistakes when using technical analysis properly:

Ignore the fundamental analysis, and only perform technical analysis only for a short period of time. The fundamental analysis explores the inherent potential of listed companies and provides long-term guidance.

Avoid using a single technical indicator for analysis. Each technical indicator has its own advantages and disadvantages. When conducting technical analysis, consider the trend of multiple technical indicators, at the same time, we can analyze the specific trend to understand the high level of technical analysis. We also need to combine the wave theory, such as Jiang nun's cycle theory and economic cycle as a guiding analysis tool.

Pay attention to the characteristics of anti-Technical Operations in the case that the technical indicator has a high level of human nature and strong stocks. The purpose is to make full use of the technical personnel.

The transaction volume is of great significance. We should pay close attention to every market behavior of the main banker, which is related to the transaction volume. We should increase the construction of warehouse to grab the goods, dispatch the goods in the short-term, and rebound in the short-term, large-scale distribution and other actions of the banker are directly linked with the transaction volume. If there is a market change, the dealer should leave the market decisively. in the lower part of the market, the dealer should take decisive measures to seize the goods.