Because individuals have free will, their actions are difficult to predict.
On the other hand, group behavior is more primitive and therefore easier to predict.
Analyzing markets is perhaps analyzing collective behavior.
You need to figure out which direction the group is running and which direction it is changing direction.
Groups attract individuals and cloud their judgment.
The problem most analysts face is that they themselves are swept up in the mob mentality.
The longer the rise continues, the more it becomes swept up in crowd psychology.
As the upward trend continues, more and more technical analysts become captive to bullish sentiment and ignore warning signals, often missing reversal trends.
As the downtrend continues, more and more technical analysts become captive to the gloomy bearish sentiment and miss the bullish sentiment.
That's why it's helpful to write down a plan for market analysis.
You need to decide in advance which indicators to observe and how to interpret them.
Investors can use several tools to track the nature and intensity of crowd psychology.

---From Chapter 2, Crowd Phenomenon and Price Fluctuation Structure

Price range analysis is not intended to be used independently to derive precise trading points.
Rather, it is useful for determining whether the current stock price is high or low in terms of trend.
Price range analysis effectively presents support and resistance levels that indicate market entry and trading timing by applying upper and lower bounds to stock price fluctuations.
Therefore, in price range analysis, by simultaneously using oscillators, trading signals can be derived more clearly.
---From Chapter 5, Stock Price and Price Range Analysis

To know in which direction a stock's price will move using technical analysis, you must first know the trading volume.
In the stock market, trading volume refers to the number of stocks traded during a certain period of time (minutes, days, weeks, months, etc.).
The most important thing to understand the movement of the stock market is price.
Trading volume is used as an auxiliary indicator to check price movements.
However, just because volume is a secondary indicator does not mean that its importance is any less.
Trading volume generally moves in the same direction as the stock price trend and tends to precede the stock price, making it a good indicator of stock price movements.
Therefore, stock price analysis that does not consider trading volume is bound to be unreliable.
Trading volume is a crucial part of investment information, yet most investors tend to ignore it.
Fundamental analysts don't even consider volume, and technical analysts don't fully utilize volume.
Trading volume provides key information in two aspects:
First, volume allows us to estimate changes in stock prices before they are realized.
Second, volume helps technical analysts interpret the meaning of stock price movements.
---From Chapter 11, “On the Importance of Trading Volume”

Cycle analysis may sound a bit unfamiliar.
However, cycle analysis is an established field of stock price analysis within the framework of technical analysis.
Cycle analysis is the second step in price fluctuation analysis. It removes trend factors from stock prices and then processes the remaining trend removal value to extract cycle factors.
Here, the terms 'circular factor' and 'cycle' are used interchangeably.
Those who emphasize cycle analysis say that any analysis without cycle analysis is inaccurate.
Because the cycle is what can explain the ups and downs of the stock market.
A cycle is something that happens with regular repetition.

---From Chapter 14: What is Cycle Analysis?

The Strength Index is an oscillator developed by Alexander Elder that measures the size of the buying force behind a stock price rise and the selling force behind a stock price decline.
This indicator is conceptually significant as it comprehensively combines key market information such as the direction, size, and trading volume of stock price changes.
Stock price fluctuations are defined by three factors: direction of fluctuation, extent of fluctuation, and trading volume.
If today's closing price is higher than yesterday's closing price, the force of stock price fluctuation is a positive (+) value, and if it is lower, it is a negative (-) value.
At this time, the greater the fluctuation range and the greater the trading volume, the greater the power of stock price fluctuations.
---From "Chapter 16: Strength Index and Elder Ray Developed by Elder"

A P&F chart is a chart that displays only the movement of stock prices according to certain rules without considering time.
In other words, it records the fluctuations in stock prices according to the predetermined box sizes on the graph paper.
P&F charts are not only more flexible than bar charts, but also clearly indicate trading points.
Also, like candlestick charts, it can be used to analyze trends and patterns, as well as Elliott Wave theory and divergence phenomena.
Therefore, when performing technical analysis, it is recommended to use bar charts as a basic analysis tool and P&F charts as a supplement.
---From Chapter 18: What is a P&F Chart?

The three-line reversal chart is an indicator used to more quickly identify when a stock price changes from rising to falling or from falling to rising.
It has the characteristic of clearly indicating a buy or sell signal from a mid- to long-term perspective rather than a short-term perspective.
The three-line reversal chart is useful when a trend continues for a considerable period of time.
However, if the stock price flow is unstable, the trend progresses for a short period of time, and the ups and downs are repeated or the stock price fluctuations are large, the usefulness is greatly reduced and the usability is not great.
This chart format is easy to apply to market leaders or popular stocks with a large upward trend in stock price movements. The longer the stock price fluctuation range, the stronger the upward or downward trend is.
And it has the principle that if one direction of the positive or negative line continues, the trend in that direction continues.
Therefore, the three-line reversal chart is characterized by the fact that if an upward signal continues and a downward negative line appears, it is recognized as a short-term sell signal, and conversely, if a downward signal continues and a upward positive line appears, it is recognized as a buy signal, without requiring any special analysis techniques.

---「Chapter 19 Charts Originating in the East I.
From “Three-Line Transition Diagram”