1. What's the trend of the stock box?
The trend of stock box is a periodic K-line chart, which is connected with high points as the top and low points as the bottom. In the box trend, the stock price fluctuates periodically between the top and bottom of the graph.
2. How to use the stock box trend?
In the actual trading reference application, investors should pay attention to the top and bottom lines of the box trend chart. In an effective box trend chart, the top line can be used as the stock price pressure level and the bottom line can be used as the stock price support level. (as shown in the figure below)
In the trend chart of stock box, the stock price effectively breaks through the top pressure level, and the stock turnover shows an effective volume trend, which can be used as a reference for buying points. It means that in the long-short game of the stock's box trend, many forces in the market beat the empty funds, and the box trend turned to an upward trend after an effective breakthrough. The top pressure level of the stock price can be used as the support interval for subsequent stocks.
On the other hand, when the stock box trend chart shows, the stock price effectively falls below the bottom support level, and the trading volume of individual stocks continues to shrink, which can be used as a reference for selling points. It means that in the long-short game of the stock in the box trend, the empty market forces beat the multi-force funds, and the box trend turned into a downward trend after effectively falling below, and the bottom support of the stock price can be used as the pressure interval for subsequent stocks.
Generally speaking, the trend of stock box can be used as a reference for turning trend and trading point, and the top and bottom of the graph can be used as a reference for pressure level and support level. However, in the actual trading reference, investors need to combine the market environment, individual stocks and other foundations to make a reference for buying and selling.
The stock market is risky, so you need to be cautious in investing.