Recently, I have been studying the construction of the major bottom before the bull market starts, and have gained a lot.

Our market never repeats history in a uniform way, but each time it is strikingly similar.

This similarity is reflected in the K-line, in the trading volume, in the moving averages, and in various technical indicators.

Many people ask me, what is the technology in the stock market?

I often ask myself, what is the technology in the stock market.

Each stage may have a different answer.

The current conclusion is that technology is a theory summarized based on historical experience, which is used to draw lessons and predict the future trend of stocks.

Advertisement

The reason why technology is effective is because the essence of technology is the traces left by the operation of funds.

This is like the main force must make money, it must lift the stock, there is only this way.

Those who say that making money by suppressing the stock price and shorting stocks is actually not established.Because excessive suppression can lead to the loss of chips, once it is reversed and long-bombed, it will be irretrievable.

Short selling is just a temporary hedging tool, and almost all major players with sufficient capital are uniformly making money by going long.

This determines that the main force needs to complete the process of buying chips at a low position, then raising the stock price, and finally selling at a high position.

This process will inevitably leave a variety of graphics, that is, operational traces.

The so-called technology is the experience and methodology obtained by studying these rules.

So, the underlying technology is not actually complicated.

But the technology seen by retail investors is so diverse because the details of the operation are ever-changing and each has its own characteristics.

This has raised the so-called technology to a new height, making it elusive.

In addition, with the increasing number of stocks, the technical patterns of different stocks are not quite the same, which makes the retail investors' grasp of technology always stay at a superficial level, and instead plays a counterproductive role.

Especially in the era when technology can be quantified, as long as the technical graphics are turned into a set of programs, it can directly make money through program trading, and everything is developing in a direction that is unfavorable to retail investors.The technology of the moment, whether it is still useful and how to simplify the complex, has become a major challenge.

From the bottom up, technology itself is subordinate to capital because technology is the trace left by capital.

We follow all the technology, hoping that the technical surface can reflect the changes in the capital surface.

Technical analysis is just analyzing the dynamics of capital through the results.

Then, by looking at the direction of capital, we hope to predict the next move of capital.

Here we can get the first conclusion, the long cycle technology must be better than short cycle technology.

We all know that in order to enter and exit smoothly, the main force will try every means to confuse his opponents.

These opponents are not necessarily retail investors, but also some big investors, hot money, and even other main capital.

So, there will be more various tricks, which is commonly known as washing the plate.However, the level of deception often remains at the daily line level, because the weekly and monthly lines take too long, making it difficult to manipulate the market.

The application of technical analysis at a larger time frame can greatly reduce the error rate in capturing capital.

Although the longer the cycle, the more likely it is to miss good buying and selling points, the accuracy is higher.

Whether to pursue the winning rate or the return on investment, everyone needs to measure their own ability.

The second conclusion is not complicated, that is, the chart is subject to the volume.

There is a technique called naked K line method, but in reality, the success rate of naked K is not very high.

We often hear a term called volume-price divergence.

Not every main force can operate stocks smoothly and make a lot of money in the end, and there are also some who are inexperienced and lose money in the end.

Those main forces with volume-price divergence and high positions that cannot increase the volume are mostly losing.

Not increasing the volume at a high position is not that they don't want to increase the volume, but that there is no one to take over the market, and the volume cannot be released.The foundation of technology is capital, so the expression of volume is undoubtedly the most important.

Some stocks have exceeded expectations in their gains, not because the main force had planned it from the beginning, but because there were new funds taking over during the process, ultimately creating a joint force.

It is very difficult for retail investors to understand the volume, but remember one thing: volume can change the trend.

When abnormal volume is found, when it is divergent, it is the critical point of the change of the plate, and decisions should be made according to the situation of the plate.

The third conclusion is that the fewer technical indicators, the better.

We regard technology as an important reference parameter for investment.

For machines, the more participation, the stricter the execution standards are better.

But for individuals, the more parameters there are, the more complex the decision-making, the more mental effort is consumed, the more prone to errors.

So, it is enough to have 2-3 indicators as reference dimensions.

Some experts are sufficient to use the moving average as an indicator.Most technical indicators are simply different ways of calculating parameters, and they are not particularly complex. What truly needs to be understood are volume indicators and cycle indicators. Cycle indicators refer to different levels of time indicators, from 60 minutes, 90 minutes, 120 minutes, to daily, weekly, and monthly lines. The cycle always takes precedence over the indicator to determine the capital behavior in the market. On the same cycle, using too many indicators is also difficult to judge the future trend. It's like blind people touching an elephant, unable to see the whole picture of the market.

Technicals are not at all complicated or mysterious; it all depends on how the person using the technology applies it. However, the technology itself does not have a 100% certainty; it is a matter of probability. Capital determines the form of expression of technology.The issue of probability can be resolved in a quantifiable manner, which is why quantification can always make money.

For retail investors, what can be obtained through technical means is signals.

And the higher the level of the signal, the higher the accuracy.

Slowing down is the method for retail investors to make money with technology, rather than trying to make money quickly in the short term.

Look at those retail investors who engage in short-term gambling, they lose more than they win, otherwise, what would the main force earn?

But if you slow down, it is difficult for the main force's sickle to swing over the heads of retail investors, and everything becomes different.

The so-called "peeling the onion" is actually to make the technology gradually simple, and the fewer the buy and sell signals, the better.

Because the fewer, the more accurate it means.

Retail investors cannot accurately track funds, especially short-term funds, many of which are influenced by emotions.

But for some waves, some medium and long-term funds, it is relatively easy to control, because the technical effectiveness is very high.We study technology to help ourselves judge the market situation.

Never be burdened by technology, instead, wear colored glasses and ultimately sink into the wrong technology.