1, confirm the end of the trend. First of all, you must confirm that this trend has been completely reversed. There are three conditions to confirm the trend reversal. Take the reversal of the upward trend as an example. First, it failed to continue to rise after hitting a new high, second, it fell below the upward trend line, and third, it hit a new low. When these three conditions are met, we think this trend is over.
2. Get some points. Draw the golden section line with the lowest and highest points of this trend as the starting point and the end point. Note that the starting point is the starting point of this trend and the end point is the end point of this trend. It's best not to do the opposite, because some software will produce different values.
3. When analyzing long periods, we must use logarithmic coordinates. Because ordinary coordinates will distort the price line.
Extended data:
Which line is more important?
1. When the trend changes, its callback or reverse pumping will generally reach the position of 0.6 18.
2. resonate. If the trend of the previous level is not broken, the golden section line can be drawn at the same time. If the position of 0.382 falls near the position of 0.6 18 of the fracture trend, the role of this position is more obvious.
3. After some trends change, they only turn back to about 50% of the reverse movement. In this case, it is very likely that the same trend will continue on a larger scale.
App application
1. When moving backwards to the position of 0.6 18, you can enter the third position with your eyes closed. Then, you can look for the reversal pattern in a smaller time frame, and once the reversal pattern appears, you will immediately increase the position by two-thirds.
2. The target position is set at 0.6 18 of the current reversal, and the stop loss position is set outside the pole of the current reversal. When the target position is reached, all positions will be increased when the reverse pattern appears, and the initial positions will be reserved for profiteering, and trailing stop will be set to protect profits.
3. If you encounter a stop loss, you must all be out. Find another opportunity.