1. Drawing method of uptrend line: connect the lowest point (or relative low point) in a certain time period with any low point before the highest point, and the straight line that does not cross any price in the middle is the uptrend line. Downward trend line drawing: a straight line connecting the highest point (or relative high point) and any high point before the lowest point in a certain period of time without passing through any price in the middle is a downward trend line.
2. Special case of downtrend line: Only in one case can the high point after the lowest point be connected, that is, when the market forms a double bottom, the high point (neckline) after the lowest point can be used as the second connection point to draw the downtrend line. Note: the price of the trend chart cannot cross the drawn trend line, which is incorrect. There should be a certain time span between the two selected points. And the two connection points cannot be biased towards the lowest point or the highest point. The trend line should be parallel to the central axis of the upward or downward trend.
3. Inflexion point and its inflexion line. The concept of inflection point comes from channel theory. Any upward trend or downward trend can be assumed as small channel operation, and the price operation trend is limited to two parallel lines. If we want to grasp the trend of the market, we should always pay attention to the turning point of the market-inflection point.
4. Inflexion point and inflexion line: Inflexion point refers to the dividing point between upward trend and downward trend. That is, the parallel line with the extension line-inflection point line-the theoretical point that contacts or will contact in the price operation. The principle of drawing inflection point line is: to find it, draw it first; To find it, draw it first. To find the inflection point above, first find the line below, and then move the line below to the desired position in parallel; To find the inflection point below, we must first find the upper line, and then move the upper line to the desired position in parallel.