Combination of technical analysis

As the stock market in the asymmetric information, coupled with China's stock market at this stage at a relatively ineffective stage, in theory, it is a technical analysis of the foundation and conditions for survival. In specific investment practice, we can also observed that such a situation, some of insider trading, with its grasp of the insider information of listed companies to control and manipulate the stock prices of listed companies, may reap excessive profits to achieve its objectives. Therefore, technical analysis by some investors accept there is a market-based, the vast majority of the domestic securities investment analysis of the trading system based on technical analysis is justified.



   However, it is well known technical analysis method has its inherent defects, defects such decision a single technical analysis or technical analysis indicators easy to fall into the "anti-technical analysis" of the trap, we need a variety of technical analysis or a variety of technical analysis Indicators and other methods of analysis of the integrated use. We will be a variety of technical analysis or technical analysis of various indicators of the comprehensive use of technical analysis method called the combination. At present, the technical analysis based securities investment analysis of the trading system is one of the main features of the development characteristics include a combination of technical analysis indicators of technical analysis methods. Especially in the capital, costs and profit and loss and so on, the market is an urgent need to guide the combination of technical analysis indicators.



   Through the many at home and abroad mainly to the technical analysis of investment securities trading systems analysis, we found that combination of technical analysis the main features in the following areas: First, the combination of technical analysis must have a comprehensive approach, which is to Comprehensive technical analysis of the four major elements: price, quantity, time and space. Only contains all the essential elements in order to have a more accurate analysis and judgement of the results. Second, the combination of technical analysis to reflect changes in stock price cycle, including the overall market trend and the cycle of the price cycle of stocks. Experienced technical analysis will find, at different stages of the cycle of technical analysis is different from the performance, or for the performance of the different trading signals, or performance for the accuracy of certain differences, the main reason is that they did not consider cycle Role. In view of the majority of technical analysis indicators and technical analysis methods have not considered cyclical, we think that through the combination of technical analysis can make up for a single method of technical analysis method in the cyclical aspects of the defects. Third, the combination of technical analysis to combine the overall trend of market trends or plate design. We know that the overall market trend or plate movements affect the movements of stocks, and therefore combination of technical analysis must consider the overall market trend or plate movements.



   In addition, construction of a practical combination of technical analysis methods need to consider the user's personality. For different users, because he has different investment and operating strategy, its combination of technical analysis methods are different, have certain personality characteristics. For example, the same technical analysis, if the operating performance of a strategy for the radical, and the other to secure performance, then they will use different methods of technical analysis