The closer the closing price is to the lowest point in the straight line, does it mean that the market is about to reverse and pick up? This is a sentence in the Secret of Short-term Trading, which is
The closer the closing price is to the lowest point in the straight line, does it mean that the market is about to reverse and pick up? This is a sentence in the Secret of Short-term Trading, which is best supplemented.
This means the principle of drawing lines. Let me give you an example. The following figure is the K-line chart of the market from 20101to 20 1 1 February. The yellow line below is the connection between the two low points in the previous period. It can be seen that the vicinity of 1.25 is near the low point of the drawing line, which should be reversed.