"Limitations of K-line"
Today I flipped through "Japanese Candlestick Chart Technology".
Many technical analysts highly praise this book. In short, this book is one of the foundational works of K-line analysis.
However, what is interesting is that "Japanese Candlestick Chart Technology" openly admits the limitations of technical analysis:
1. Admit that the amount of information in the K-line is limited.
2. Admit that K-line technical analysis will bring many false signals.
3. Admit that the quantitative effect is not obvious.
4. Admit that there is a certain subjective component in K-line technical analysis. It is a bit like Chinese medicine, which sometimes works and sometimes doesn't.
5. Admit that there are a lot of vague definitions in K-line terms, which is also like Chinese medicine.
6. Admit that it is difficult to predict the short-term future trend.
Friends, this is called three correct views. The author Steve is one of the originators of K-line technical analysis, and he also makes money by selling books, technical analysis consulting and training, but he still has a bottom line.
On the contrary, many technical analysts are obviously mediocre, and they dare to pat their chests and shout that the price will go to 100,000 when they draw a trend line or divergence casually.
This has greatly misled many retail investors: they think they can easily make money by predicting short-term trends through K-line.
