Many investment friends think that technical analysis is difficult to learn. Indeed, mastering technical analysis is definitely not that simple, but He Shaotan believes that simple trend analysis can be learned by everyone. I believe that as long as you understand the following three methods, making a small profit is more than enough.

1、 In terms of form:

Long term forms are more important than short-term forms

The short-term trend moves within a relatively small range and is easily influenced by various factors and can change at any time. Therefore, it is difficult for investors to grasp the short-term trend of silver prices, and they are prone to getting lost in various influencing factors. If investors have a thorough understanding of the long-term trend before analyzing the short-term silver price trend and are confident, they can overlook the short-term trend, grasp the main contradiction, and make correct analysis and judgment.

If the silver price shows a "morning star" pattern within a few days, it is usually considered that the silver price is about to bottom out and there is a high possibility of reversal. However, from a long-term trend analysis, the silver price may still be running in a long-term downward channel, and there is no possibility of breaking through the barrier line. At this time, the "morning star" is only a small rebound, which is a small adjustment for some investors to close their positions and profit, and for the market to digest pressure. There is even no opportunity to do short-term trading. At this point, the shape of the 'Morning Star' has no meaning of reversal.

2、 In terms of location:

Position is more important than form

In depth study of technical analysis reveals that there are rules that cannot be followed. But if these rules are not analyzed in conjunction with position and form, then these rules become castles in the air and have no meaning. The "head, shoulders, and bottom" pattern is a very classic bottom reversal pattern, which usually appears in the bottom area of silver prices. However, if a "head, shoulders, and bottom" pattern appears in the high price area of silver prices, mature investors would rather exit the market and observe, rather than believe in this pattern.

Because 'the head is most likely to appear at high levels and the bottom is most likely to appear at low levels' is the simplest and most effective investment rule.

3、 From a market perspective:

Market direction is more important than location

He Shaotan believes that "the level of silver prices is not important, the trend of silver prices is the most important".

Perhaps the silver price has reached a high or low level, but as long as investors can accurately determine the trend of silver prices, they can still buy or hold. The most important and difficult aspect for investors to analyze is the direction of market trends.

Mastering and proficiently applying the three principles will enable you to understand the trend chart of gold prices and make more profits with less loss in the gold investment market.