Psychological analysis is one of the research methods of criminal psychology. Refers to the study of the external criminal behavior and its objective consequences and the factors that play a role in the formation of the criminal's criminal psychology based on the inevitable connection between the criminal's criminal psychology and external manifestations, and the inevitable connection between various factors and the formation of criminal psychology. , analyze the causes of the formation of criminal psychology and the laws of development and change. The main methods of psychological analysis include: (1) factor analysis method; (2) psychological experiment method; (3) type analysis method; (4) correlation design method; (5) observation method, etc.
The principle of using psychological analysis to complete an operation is that price fluctuations start from the disunity of public psychological prices and from the break of the basic equilibrium state. If you open a position when the market is in chaos, the price will be pursued or suppressed under the influence of a new public psychological "consciousness" until a mass price that is acceptable to the public psychology emerges. At this price, the forces of the long and short sides are once again basically balanced, and the market begins to basically maintain a consolidation trend, and a rising (falling) market ends. We take profit, one operation complete. What we need to grasp is the market direction when public psychology reaches a new "*** consciousness".
The "people" who control the market direction have both emotional and rational modalities. When participating in the market, investors always make buying and selling decisions based on their subjective judgment and objective fundamental factors. Investors treat the market with both emotional and rational modalities at the same time. Due to the simple use of objective operations or subjective operations, investors have different opinions and it is impossible to achieve complete unity of market direction expectations. It is often seen that investors still have a confused look on their faces at the moment they place an order because they simply use an analytical method to operate. This can be seen from the side that the mentality of market participants is very unstable when placing orders, and this is precisely because of the "occasional conflicts" between the first two analysis methods. The reason for price fluctuations can also be said to be: the process of investors with two modalities at the same time, based on their different psychological expectations, constantly adjusting.
The advantage of psychological analysis is that it contains both subjective and objective factors. It is a "fuzzy" analysis method between objective and subjective, between perceptual and rational.
Because it has the characteristics of both technical analysis method (subjective) and fundamental analysis method (objective), in theory, psychological analysis method better integrates the advantages of the two, so as to benefit investors. Based on psychological expectations, we predict the market direction with a more neutral and calm attitude, improving the accuracy of predictions.