Trading, also known as trading, is a financial investment tool that is worse than investing in the stock market.
The Five theories of Trading: 1. Volatility Theory Volatility theory is a theory about the structure of markets, which holds that price movements have certain patterns of development.
What drives prices up and down is a change in the mindset of the investing public, from optimism to pessimism, from pessimism to optimism.
This change is repeated and circular, so that the price after the completion of the formation of up and down fluctuations will appear regularly.
2, gann theory gann theory is the investment guru William gann integrated use of mathematics, geometry, religion and astronomy to establish a unique analysis method and measurement theory, combined with his outstanding achievements in the stock, foreign exchange and futures market and the precious experience, the theory is that the market price movements is not volatile, but can be predicted using mathematical method.
The idea is to create a rigorous trading order in a seemingly volatile market that can be used to detect when and to what price a correction will occur.
3. Japanese candlestick Chart technology Japanese candlestick chart technology is a famous trading technology at home and abroad, which is a required course for everyone.
It is based on a series of candlelight charts combining different trend patterns and analyzing the data of these patterns to draw relevant conclusions so that traders can predict the future trend of the market.
4. Glambie’s Law of Eight Moving Averages Glambie’s law of eight moving averages was finally established by American investment expert Gnanvie based on the “Law of price cycles” of Elliott’s volatility theory and observed the price structure of American stocks. Glambie used a 200-day cycle to predict the future price trend.
Grumby’s law of eight moving averages is a poor aid to studying and judging trading points.
Users of moving averages have long regarded them as treasure troves in the technical analysis of foreign exchange trading, and for that reason they are in full play of the spirit of Dow Jones theory.
5. Butterfly Theory Butterfly theory is called wave theory, which is another classic theory after cycle theory.
The downside of the butterfly theory is its relatively high operational requirements.
Its discussion format and market accuracy must meet appropriate standards.
The Butterfly theory mainly discusses six forms, and once the form is discussed, its accuracy is very high.
