According to the historical data of price and quantity, statistics, mathematical calculation and drawing charts are the main means of technical analysis. In this sense, there are many technical analysis methods. No matter how the technical analysis method comes into being, people are most concerned about its practicability, because our purpose is to use it to predict the future price trend and thus serve the investment decision.

As an investment analysis tool, technical analysis should pay attention to the following issues in its application:

(1) Technical analysis must be combined with fundamental analysis before it can be used in the domestic futures market, and the success rate of technical analysis and prediction is high. However, while applying technical analysis, we must pay attention to combining fundamental analysis. For commodity futures, the fundamental factor that restricts the futures price is the relationship between supply and demand of commodities, and the fundamental analysis begins with the analysis of supply and demand. Therefore, technical analysis should be combined with fundamental analysis.

(2) Pay attention to the comprehensive judgment of various technical analysis methods to avoid one-sided use of one technical analysis.

Investors should fully consider the predictions of various technical analysis methods for the future, and synthesize the results obtained by these methods to finally get a reasonable description of the strength comparison between the long and short sides. Practice has proved that using a technical analysis method alone has considerable limitations and blindness. If the same conclusion is reached after applying various technical analysis methods, the probability of making mistakes based on this conclusion is very small, while the probability of making mistakes based on only one method is very high. In order to reduce your own mistakes, you should master as many technical analysis methods as possible.

(3) The conclusions drawn by predecessors and others must be verified by their own practice before they can be used safely.

Because the futures market can bring huge benefits to people, people who have studied futures for hundreds of years have emerged one after another, with different analytical methods and different styles of using the same analytical method. The conclusions drawn by predecessors and others were obtained under some special conditions and circumstances. With the change of market environment, the successful methods of predecessors and others may be ineffective when applied to themselves.