2. Three trends of Dow Theory, namely, short-term, medium-term and long-term trends, short-term or long-term markets, major short-term markets and major long-term markets;
3. Volume is a tool to reflect the mentality of market investors. Investors who are optimistic about the current trend will naturally increase the trading frequency;
4. Until the market closes on a certain day, the total number of all open contracts is the interest of the positions held on that day, which shows the views of most investors on the whole market.
Fundamental analysis refers to the analysis of various factors that affect the price and trend of securities according to the intrinsic value of securities, so as to decide which securities to invest in and when to buy them.
The basic analysis assumes that the price of securities is determined by its intrinsic value, and the price changes frequently due to political, economic, psychological and other factors, so it is difficult to be completely consistent with the value, but it always fluctuates around the value. Rational investors should make investment decisions according to the relationship between the price and value of securities.
The basic analysis is mainly applicable to long-term securities price forecasting, relatively mature securities market and areas with low forecasting accuracy.
The basic analysis mainly focuses on the fundamental factors such as macro-economy, industry background, enterprise management ability and financial situation, trying to find out "intrinsic value" from the company's point of view.
Fundamental analysis includes:
(1) Macro: study a country's fiscal policy and monetary policy, find out the intrinsic value of the market through scientific analysis methods, and compare it with the actual value of the market.
(2) Micro: Study the economic behavior of listed companies and the corresponding economic variables.