The straight line connecting the high points of the stock price wave is the downward trend line, and the straight line connecting the low points of the stock price fluctuation is the upward trend line. The following is a K-line chart I compiled and shared to look at the trend line. I hope it will be helpful to you!!!!
The trend line shows that when the stock price moves in its fixed direction, it is very likely to follow this direction. The line keeps moving.
(1) When the rising trend line falls below, it is a selling signal. Before it falls below, the rising trend line is the support for every pullback.
(2) When the downward trend line breaks through, it is an entry signal. Before it breaks through, the downward trend line is the resistance for every rebound.
(3) The longer a stock moves with a fixed trend, the more reliable the trend is.
(4) In the long-term upward trend, each change has a higher trading volume than the corrective change. When a very high trading volume appears, this may be a signal of the end of the mid-term change, followed by What will come is a reversal of the trend.
(5) At the end of short-term fluctuations in mid-term changes, most of them have extremely high trading volume, and the tops appear more often than the bottoms. However, very high trading volumes often appear at the bottoms of panic declines. Volume, this is because at the top, the stock market is boiling, retail investors blindly rush in in large quantities, and large investors and traders take the opportunity to sell. At the bottom, the stock market has experienced a period of panic and sharp decline, and the confidence of ignorant retail investors is shaken, and they sell when the price is seen. At this time, it has actually reached In the final stage of a long-term downward trend, large investors and traders began to buy in large quantities, resulting in high trading volume.
(6) Every upward trend line needs two obvious bottoms to determine, and every downward trend line needs two tops.
(7) The steeper the angle between the trend line and the horizontal, the easier it is to be broken through by a short horizontal consolidation, so the flatter it is, the more technical significance it has.
(8) The rise and fall of stock prices will accelerate the rise and fall at the end of various trends. Therefore, most of the tops or bottoms of market reversals are far away from the trend line.
Simple explanation of trend lines
1. The upward trend line is a straight line drawn upward along the lowest point of the successive reaction;
2. The downward trend line is A straight line drawn downwards along the highest points of successive reactions;
3. A valid trend line must be confirmed by touching the line for the third time and rebounding;
4. Once an effective trend line is drawn, the price usually moves according to the slope and speed shown by the trend line;
5. The price's breakthrough of the effective trend line means that the trend may reverse Early warning;
6. In order to avoid false breakthroughs of the trend line, "filter" can be used to assist; 1. Price "filter", based on the extent of the price falling below the trend line, the stock The market is generally 3%, and the futures market is generally 1%; 2. Time filter, based on the time the price stays on the other side of the trend line after falling below the trend line, which is generally the "two-day rule".
7. Trend lines also change roles and are very effective;
8. When an effective trend line is broken, the distance the price leaves the trend line is usually the same as the price before the trend reversed. The vertical distance reached at the initial point of the trend line is equal.