The golden section line is a tangent line made by the golden section ratio. After the market turns, the original fluctuation range is divided into five golden section points according to the ratio of 0.236, 0.382, 0.5, 0.6 18 and 0.809, and the fluctuation between important high and low points in recent trends is taken as the measurement base, and the stock price may follow these reversal trends.
Before learning the painting of the golden section, there are two things that must be mastered:
Remember several golden ratio figures, such as 0. 19 1, 0.382, 0.5, 0.6 18, 0.809, 1. 19 1,/kloc. Among them, 0.382, 0.6 18, 1.382, 1.6 18 are the most important, and the stock price is likely to generate support or pressure at the golden section line generated by these four numbers.
Second, find a point. This point is the highest point when the rising market ends and turns down, or the lowest point when the falling market ends and turns up. Of course, the highs and lows mentioned here are all within a certain range and are all local. As long as it can be confirmed that a trend (whether rising or falling) has ended or temporarily ended, the turning point of this trend can be used as the starting point of the golden section. Once this point is selected, the golden section line can be drawn.
There are two ways to draw the golden section:
Drawing method of the rising golden section: If the stock price is in the bottoming stage, click this low point with the left mouse button as the base point, hold down the left mouse button, drag the mouse to align the sideline with the corresponding high point, that is, trace back to the vertex of this falling band, and release the left mouse button system to generate the golden section line that bounces upward to the upper pressure level. There will be 0.382, 0.5, 0.6 18 as the pressure line in the middle, and investors can look for opportunities to lighten their positions in these important positions.
Drawing method of golden section: If the stock price is at the peak and falling stage, click this high point with the left mouse button as the base point, hold down the left mouse button, drag the mouse to align the sideline with the corresponding low point, that is, trace back to the bottom of this rising zone, and release the left mouse button to generate the golden section. In the downward trend, when the stock price falls and meets the golden section line, it can be regarded as a resistance line, from which some buying opportunities in the band can be found.
Matters needing attention
In practice, we should also pay attention to: 1 and the two most important lines in the golden section, 0.382 and 0.6 18. In the callback, 0.382 is a weak callback and 0.6 18 is a strong callback. In the rebound, 0.6 18 is a strong rebound position and 0.382 is a weak rebound position.