Confirmation of trend
Standard definition of rising trend: a certain stage trend formed by a series of continuously rising highs and continuously rising lows.
The standard definition of downward trend: a certain stage trend formed by a series of continuous downward highs and continuous downward lows.
Drawing method of trend line
1, the trend line is to connect most of the relative highs or lows and gather as many relative highs or lows as possible on a certain line. The more points are gathered, the more effective the trend line is.
2. Problems that should be paid attention to when making trend lines
(1) Trend line practice: Most investors are used to drawing trend lines from left to right.
(2) When drawing a trend line, we should also pay attention to excluding some extreme highs and lows, or abnormal intervals, and decide whether to exclude them according to experience.
(3) Within a certain trend, the trend line should gather as many relative highs or lows as possible, and the price slope should be as close as possible to the trend line slope.
(4) Trend lines and channels are very useful in operation, but their importance and accuracy are easily misinterpreted and exaggerated. Because the trend line often needs to be constantly revised in the process of market operation and finally confirmed according to the experience afterwards, its reliability is easily overestimated. For example, an uptrend line was broken down, which was originally a selling signal, but the market outlook found that the trend line was not broken down after being corrected, and the selling signal generated before was denied.
The above is the basic situation of the trend line and some explanations for everyone. I believe that after reading the above, you should have a further understanding of the trend line.