, it should be called resistance line.

When the stock price in the market reaches a certain level, it often does not continue to rise or fall. It seems that there is a resistance line at this price to block or support the stock price, which we call resistance line sum.

.

The so-called resistance line refers to a large number of selling supplies or when the stock price rises to a certain height.

The lack of acquisition hindered the stock price from continuing to rise.

It means that when the stock price falls to a certain height, the buying gas turns stronger and the selling gas gradually weakens, thus the stock price stops falling. from

From the point of view, "support" represents centralized demand, and "boycott" represents centralized supply.

This change has led to the restriction of stock price changes.

Resistance line and

Both of them are important methods of graphic analysis. Generally speaking, if the stock price fluctuates in a certain area and accumulates in that area.

Great, then if the stock price crosses or falls below this area, it will naturally become a support line or a resistance line. These used to be too big.

Prices often change from resistance line to support line or from support line to resistance line: once the resistance line is crossed, it will become the support line for the next decline; Once the support line falls below, it will become the resistance line for the next round of rebound.

First, the principle and application of support line

exist

In fact, as long as the lowest price appears many times in the same tiny interval, two identical lowest prices are connected and extended to form a support line, which vividly describes the unbalanced state that demand exceeds supply in a certain price interval. When the transaction price falls into this range, the seller refuses to sell because of the great increase in buying gas, which makes the price turn around and pick up. Its inherent essence is:

Due to the repeated appearance of this price range in the previous stage, it has accumulated a lot.

When the market approaches the support line from top to bottom,

profit

The warehouse has been cleared, and there is no suppression and shorting in the hands.

; People who do more use low money to absorb and form demand; Hesitant people are locked up,

Locking is not easy.

. Therefore, in this price range, supply is less than demand, which naturally forms a strong supporting foundation. In addition, because the market has turned back here many times, it has also established the price range of investors' psychological support. As long as there is no particularly bad news, the market will rebound.

The price range with large cumulative volume is defined as "transaction intensive area", that is, there is a high price in this intensive area.

. In order to make a profit, buyers in dense areas need to wait for the stock price to rise above this cost range. These buyers are all chip holders. As long as they do not lose confidence in the future, they will not throw chips in this price range. It is difficult for the market to fall below this price because the chip holders are reluctant to sell. on the other hand

Due to intensive trading, the amount of money held increases, and the chips in hand are exhausted, that is, the supply of chips in the market shrinks. Although some people who lose confidence in the future will still throw chips, it will not become a climate. Even if the support line is temporarily broken, as long as there is neither the cooperation of trading volume nor all kinds of bad news, the price will return to the top of the support line and the psychological support of investors will be enhanced again.

After the market is temporarily supported in the transaction-intensive area, there are two possibilities in the market outlook:-,it is a rebound; Second, the majority of chip holders lost confidence and watched a lot of selling in bad trends, that is, the support line was effectively broken and the market continued to fall.

Support lines are not only generated in transaction-intensive areas. When the market falls to 50% of the original rising wave, it will catch a little breath, and there will often be a support line in this interval, which is actually caused by the psychological factors of investors.

This rising wave (or falling wave) returns to the starting point as the principle of symmetry. In addition, the staged lowest price is often the psychological support line of investors.