Why did you choose six months? Because the China stock market is a small change of three months, and six months is a real cycle.
1. Type analysis
The straight line connecting the high point of stock price fluctuation is the downward trend line, and the straight line connecting the low point of stock price fluctuation is the upward trend line. According to the fluctuation time, it can be divided into long-term trend line (connecting long-term fluctuation points) and medium-term trend line (connecting medium-term fluctuation points).
2. Market meaning
The trend line shows that when the stock price moves in its fixed direction, it is very likely to continue to move along this line.
(1) When the uptrend line falls below, it is a shipment signal. Before falling below the limit, the uptrend line is the support of each decline.
(2) When the downtrend line breaks through, it is an approach signal. Before it breaks, the downtrend line is the resistance of every recovery.
(3) The longer the stock moves in a fixed trend, the more reliable the trend is.
(4) In the long-term upward trend, the volume of each change is higher than that of the revised change. When the volume is very high, it may be a signal that the mid-term change is over, followed by a reverse trend.
(5) At the end of short-term fluctuation of medium-term fluctuation, most of them have extremely high turnover rate, and the situation at the top is more than that at the bottom. But at the bottom of the panic decline, there is often a very high turnover rate. This is because at the top, the stock market is boiling, retail investors rush in blindly, and large households and operators seize the opportunity to sell. At the bottom, after a period of panic, the confidence of ignorant retail investors was shaken and they sold at this price. At this point, they have reached the final stage of a long-term downward trend.
(6) Each uptrend line needs two obvious bottoms to determine, and each downtrend line needs two vertices.
(7) The steeper the angle between the trend line and the horizontal line, the easier it is to be broken by short sideways, so the flatter it is, the more technical it is.
(8) At the end of various trends, the rise and fall of stock prices have accelerated. Therefore, the peak or bottom of market reversal is mostly far from the trend line.
3. Key points and tips
(1) The uptrend line is the low point of connection fluctuation, not the high point; The downtrend line is a high point connecting fluctuations, not a low point of fluctuations.
(2) When the stock price breaks through the trend line, the credibility of the breakthrough can be judged from the following points:
(1) If you break through the trend line in one trading day, but its closing price does not exceed the outside of the trend line, this is not a breakthrough, and it can be ignored. This trend line is still useful.
② If the closing price breaks through the trend line, it must exceed 3% to be reliable.
(3) When the stock price rises and breaks through the resistance of the downtrend line, a large number of transactions need to be increased; But it is not necessary to fall below the support of the uptrend line. Usually, the trading volume does not increase on the day of the breakthrough, but it will increase on the second day after the breakthrough.
(4) When the trend line is broken, there will be a gap, and this breakthrough will be strong.
(3) Experienced technical analysts often draw different experimental trend lines on the chart. When it is proved that the trend line is meaningless, they will erase the trend line and only keep the trend line with analytical significance. In addition, the original trend line will be constantly revised. For example, when the stock price falls below the rising trend line and then rises again, the analyst should redraw a new line from the first low point and the newly formed low point, or revise a more effective trend line from the second low point and the new low point.