Specific market, specific analysis: the weekly law can be further optimized, not limited to breakthroughs around. For example, in Merrill Lynch's product research report, it is best to adopt the five-week rule in the sugar futures market and the two-week rule in the soybean market.
Scope of application: the weekly rule is generally applicable to all time periods, including top, bottom, callback and bull and bear market ups and downs.
Special emphasis is placed on the operation method when there is a bull and bear market. Many investors think that the probability of rebound will increase after a few days of market inflation or plunge, which is a psychological paradox. For a simple example, the probability of getting an avatar every time you toss a coin is 50%, and the probability of being an avatar eight times in a row is 1/256. At this time, many people will answer no for the ninth time, because it has not been denied for a long time, and some people may answer the avatar, because there is always an avatar in front. In fact, neither explanation is correct. There is no logical relationship between the ninth judgment and the previous eight results, and there is no memory. So the probability of throwing an avatar for the ninth time is still 50%. From the transaction level, it is very irrational for many investors to put aside technology and fundamentals and think subjectively about how the market should be after many days of ups and downs. Take the recent sharp drop in the price of silver as an example, mainly due to the political turmoil in Greece and the growing concern about the European debt crisis caused by the sudden emergence of left-wing parties, which has continuously suppressed gold and silver. Its low rebound is also related to the temporary slowdown of the situation, and it is not appropriate to operate blindly, but it is recommended to leave the market when the market is uncertain.