Long-term form is more important than short-term form.
Short-term trends change in a relatively small range and are easily influenced by various factors and change at any time. Therefore, it is difficult for investors to grasp the short-term trend of silver prices, and it is easy to get lost in a variety of influencing factors. If we have a thorough understanding of the long-term trend before analyzing the short-term silver price trend, then investors can overlook the short-term trend, grasp the main contradictions and make correct analysis and judgment.
If there is a "morning star" in the price of silver in a few days, it is generally believed that the price of silver is about to bottom out and it is more likely to reverse. But perhaps from the long-term trend analysis, silver prices are still running in the long-term downward channel, and there is no possibility of breaking through the resistance line. Then the "Morning Star" at this time is only a small rebound, a small adjustment for some investors to close their positions and gain profits, and the market has no chance to digest the pressure. At this time, the "morning star" shape has no meaning of reversal. ..
As far as location is concerned:
Position is more important than form.
In-depth study of technical analysis will find that there are impossible laws in technical analysis. However, if these laws are not analyzed in combination with position and form, then these laws will become castles in the air and have no meaning. For example, the "head-shoulder-bottom" pattern is a classic bottom inversion pattern, which usually appears in the bottom area of silver price, but if the "head-shoulder-bottom" pattern appears in the high-priced area of silver price, then mature investors would rather withdraw from the market and wait and see, and will never believe this pattern.
Because "the head is most likely to appear at a high level and the bottom is most likely to appear at a low level" is the simplest and most effective investment rule.
Market direction is also very important.
"Silver price is not important, but the trend of silver price is the most important".
Perhaps the price of silver has reached a very high or low area, but as long as investors can accurately judge the trend of silver price, they can still buy or hold it. The most important and difficult thing for investors to analyze is to analyze the direction of market trends.