Trend marking is a basic skill. Usually, for indexes or stocks with obvious trends, on the basis of K-line, support or pressure in the trend direction is formed by connecting the high points or low points of K-line, which provides directional guidance for operation.
In theory, K-line entities are more meaningful. Entity is the place where the space finally enters. The opening and closing prices are one of the most important prices of the day. The lower shadow line is more the direction of the day test, and the long and short positions have not been successfully settled. The entity part is generally a dense area of transactions, which is the priority point for us to draw a clear line.
However, if we define the trend line by entities, we will find that the trend line is distorted and many low points cannot be on the trend line. What should we do at this time? Take the following figure as an example:
From the above figure, we find that if the entity is a trend line, and many entities with low points in the later period cannot be on the trend line, then there is something wrong with this trend line and it cannot conform to the trend of the stock, as explained below.
2. Adjust to the lower shadow line
If it is found that the entity cannot meet the trend line, it should be adjusted appropriately at this time. At this time, you can consider drawing a trend line with the lower shadow line as the lowest point. We still use the K-line chart above to redraw the trend line. See the figure below:
Therefore, the entity shall prevail first, and the entity is not allowed to use hatching. What if the entity and shadow line can't be satisfied?
3. Combination of solid lines and shadow lines
If both entities and shadow lines can't be satisfied, I think they can be used in combination at this time, whether they are entities or shadow lines, so that as many lows as possible fall on the trend line. For details, please refer to the following figure:
In the above picture, we find that neither the entity nor the shadow line can conform to the trend of the stock. At this time, it is necessary to combine the actual situation and let many low points fall on a trend line.
Let me briefly introduce the method of trend line. Take the upward trend as an example, and the downward trend is also drawn according to the above steps.
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I feel that it is well written, please praise it and pay more attention to getting more stock market analysis methods. If you have any questions about the trend line, you can pay more attention to private chat and I will answer them.