1. Market behavior includes all factors that affect the price: fundamentals, political factors, psychological factors, etc. These factors are finally reflected in the price through buying and selling, that is, price changes reflect the relationship between supply and demand, which determines price changes.

2. The price evolves in a trend way. As far as the formed trend is concerned, it will usually continue to evolve along the existing trend. For example, Newton's law of inertia (when an object is not affected by external forces, it remains stationary or moves in a straight line at a constant speed).

3. History will repeat itself. Technical analysis and market behavior have certain relations with people's psychology. Price patterns show people's optimism or pessimism about a market through specific charts.

Extended data:

Technical analysis is a part of a perfect trading system. It analyzes the trend and position of market price and improves the final probability coefficient of successful trading, which is the initial starting point in trading behavior and the most basic and important starting point in trading system!

1. Improve the success probability of the trading direction;

2. Analyze the channel level of the trend and the target price space after the vibration force appears;

3. Calculate positions, and provide a calculated numerical parameter for fund management in trading skills. After establishing fixed positions of losses and profits.

4. Look for the trading signal and confirm it through the digital quantification of the index tool, so as to provide the execution basis for the trading strategy.

5. Technical analysis theory can simplify the complicated execution psychological problems in trading behavior after sorting out the theoretical procedures and help traders improve their trading psychological ability quickly!

Baidu Encyclopedia-Technical Analysis