The meaning and essence of technical index method

Meaning: Technical index method is a method to process the original data with certain mathematical formula, get the index value, and draw the index value into a chart to predict the stock market from a quantitative point of view.

Essence: The essence of technical index method is to generate technical indexes through mathematical formulas. This is a quantitative analysis method, which processes the original data to get the index value, and then draws the index value into a chart to predict the stock market from a quantitative point of view.

Technical indicators reflect the deep connotation of a certain aspect of the stock market, which is difficult to see only through the original data. The technical index method greatly improves the accuracy of specific operations and overcomes the shortcomings of qualitative analysis methods.