Second, the price tends to change, which is the most fundamental and core factor of technical analysis. The concept of "trend" is the core of technical analysis. According to the dynamic laws of physics, the trend will continue until there is a reversal. In fact, although the price fluctuates up and down, it is moving in a certain direction after all, which is of course the application of Newton's law of inertia. Therefore, the technical analysis method hopes to use graphic or index analysis to determine the price trend as soon as possible and find the reversal signal, so as to seize the opportunity to make a profit in the transaction.
Third, history will repeat itself, which is considered from human psychological factors. Futures investment is nothing more than a pursuit, and this motivation will not change whether it is yesterday, today or tomorrow. Therefore, in this psychological state, human transactions tend to a certain pattern, which leads to history repeating itself. Therefore, the past price changes may continue to occur in the future, which is worthy of investors' study. By using the method of statistical analysis, we can find out some regular laws and sort out a set of effective operating principles.