Technical analysis is a method to predict the future market trend by studying historical price and trading volume data. It mainly relies on mathematical and statistical models, as well as chart models and indicators to analyze the market. Deviation technical analysis is one of the important technical analysis methods, and the reversal point of the market is predicted by analyzing the deviation between the price and the index.

What is deviation? Deviation refers to the inconsistency between price and index. When the price and the index move in opposite directions or out of sync, there will be deviation. Deviation can be divided into positive deviation and negative deviation.

Positive deviation positive deviation refers to the situation that the price falls and the index rises. This means that the purchasing power in the market has increased, which may indicate a price reversal. Positive divergence usually appears at the bottom of the market and is a buying signal.

Negative deviation negative deviation refers to the situation that the price rises and the index falls. This means that the selling power in the market has increased, which may indicate the reversal of prices. Negative divergence usually appears at the top of the market and is a selling signal.

How to Apply Deviation Technology Analysis Deviation technology analysis can be applied to various markets and time periods, including stocks, futures, foreign exchange and so on. Here are some common application methods:

1. Confirm the trend reversal: when there is a deviation signal in the market, it can be used as a signal to confirm the trend reversal. For example, when the market is in a downward trend and there is a positive deviation, it can be regarded as a buying signal, indicating that the price may rise in the opposite direction.

2. Determine the entry point and exit point: Deviation from technical analysis can help determine the trading opportunity. For example, in the upward trend, when there is a negative deviation, it can be regarded as a selling signal, which means that the price may reverse and fall, and you can consider selling the positions you hold.

3. Combining other indicators and chart forms: Deviation from technical analysis is usually combined with other indicators and chart forms for analysis. For example, the combination of moving average, relative strength and other indicators, as well as chart forms such as head and shoulder top and double bottom, can increase the accuracy of deviation signals.

Deviation from the limitations of technical analysis Although deviation from technical analysis plays a certain role in market analysis, it also has certain limitations:

1. False deviation: Sometimes, there will be false deviation in the market, that is, there is a deviation signal between the price and the index, but it has not reversed. This may be caused by noise or other factors in the market and needs to be treated with caution.

2. Delay: Deviation signals usually appear after the price trend changes, so there is a certain delay. This means that investors may miss part of the reversal.

3. Subjectivity: The judgment that deviates from technical analysis largely depends on the subjective judgment and experience of investors. Different people may have different interpretations and judgments.

Deviation from technical analysis is a commonly used technical analysis method, which can be used to predict the reversal point of the market and determine the trading opportunity. Investors should pay attention to its limitations when applying deviation technology analysis, and make a comprehensive analysis with other indicators and models to improve the accuracy of analysis.