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What are the major misunderstandings of foreign exchange technical analysis?

2022-03-10

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Forex technical analysis is a very useful subject. Although there are many people who learn it, there are only a handful of people who can master it. Let's take a look at the major misunderstandings of foreign exchange technical analysis.

Understanding technical analysis requires understanding its two bad aspects: mistaking technical analysis for science; mistaking technical indicator analysis for technical analysis.

Technical analysis is not a science. Accuracy, rigor and correctness are the main characteristics of science. Technical analysis is an art. People who mistake technical analysis for science will fall into misunderstandings. The main changes are in two aspects: with any K-line chart, he can tell the trend, which is very accurate on the surface. This is not a master, this is a god; open a clinic saying that it can cure all diseases, fool patients, and make others follow suit.

Judging the exchange rate is a matter of probability, and there are bound to be limitations in judging through technical analysis. Can not be completely limited to technical analysis, otherwise you will lose completely.

Speaking of technical analysis, talking about technical indicators is another big misunderstanding. There are two levels of such people:

1. Primary level. Attempts to find authoritative technical indicators often fail;

Second, the advanced level. Improve the so-called "universal indicators" by exploring and negating the ancient indicators and launching their own indicators.

Only by understanding the misunderstandings of technical analysis, starting from the actual situation, and constantly summing up experience, can you find a path that suits you and succeed.

The above information is provided by special analysts and is for reference only. CM Trade does not guarantee the accuracy, timeliness and completeness of the information content, so you should not place too much reliance on the information provided. CM Trade is not a company that provides financial advice, and only provides services of the nature of execution of orders. Readers are advised to seek relevant investment advice on their own. Please see our full disclaimer.

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What are the major misunderstandings of foreign exchange technical analysis?

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