There are many similar analysis methods:

Golden section radian

Jiang enfan

Equidistant periodic analysis

Golden section cycle

Spiral analysis

Some skills about the golden section line

Using the golden section, we can judge the nature of the market and the future trend of the price according to the downward correction and upward rebound height of the gold price.

1, judging from the callback interval

The real rising market will have several large-scale callback finishing processes. The first target position of this callback is generally near the 0.382 line of the previous rising market height, and the second and third target positions are near the 0.5 line and 0.6 18 line of the previous rising market height.

If the gold price is adjusted back above or near the 0.382 line, it will resume its upward trend, which indicates that the strong upward trend of gold price remains the same. When the gold price breaks through the important support line of 0.382, the 0.5 line of this rising market is the most important support level.

If the price goes back above or near the 0.5 line, it will go up again, indicating that the rising market is not over. When the gold price breaks through the important support line of 0.5, the 0.6 18 line of the rising market height is the last support level.

If the price effectively breaks through the 0.6 18 line, it means that this rising market is coming to an end, and the rising trend of the price will turn into a downward trend or a horizontal movement trend.

2. Judging from the extent of rebound.

There will be several large-scale rebound shipments in a big down market, which is very helpful for investors to sell on rallies. At the same time, the golden section can also be used to judge the nature of the rebound market.

When the price falls from a high level, there will be a big rebound due to the excessive decline in the previous period. When the height of this rebound does not reach 0.382, it will fall again, that is to say, this rebound is weak, and the price decline in the future may be even more fierce.

When the rebound height of the price does not reach 0.5 line, it will fall again, indicating that this rebound is the middle resistance on the way down, and the downward trend of the price remains the same, and the downward market is not over yet.

When the rebound height of the price reaches 0.6 18, it shows that the downward trend of the price will slow down, and the downward market may also turn to a horizontal consolidation market.

However, the above analysis method does not apply to those currencies that have risen too high in the previous period.

Judging Support and Pressure Zone (1)

Another application of the golden section is to use the distance between different golden sections to divide the price fluctuation into several callback support zones and rebound pressure zones, so as to judge the future running trend of the price.

1, callback support area

In a relatively large-scale rising market, the operation of foreign gold is divided according to the golden section standard, which can be divided into four areas from top to bottom, namely, no pressure area, strong support area, last support area and no support area.

(1) pressure-free zone

The stress-free area in the rising market refers to the area above the golden section line 0.382 when the price of gold rises. In a big rising market, the price will generally have several big pullbacks. In this pullback process, as long as the price of gold always runs on the gold line of 0.382, the upward trend of foreign gold will continue, which is very helpful for investors to hold shares and buy on dips.

However, the stress-free zone here does not mean that the gold price runs without pressure, but that when the gold price goes up again, the pressure in this region is relatively small, and the real pressure for it to rise again is near the high point set in the early stage of this round of market. In other words, only when the price really breaks through the previous high point and continues to rise can there be no real pressure. This is the so-called "going up without talking about the top".

(2) Strong supporting area

The strong support level in the rising market refers to the area between the two gold lines of 0.382-0.5 in the process of gold price rising. When the price of gold starts to adjust downward after a relatively large round of rising market, it will encounter strong support if it is adjusted back to the region between 0.382 and 0.5. As long as the gold price always runs in the range of 0.382-0.5, it shows that the adjustment of the gold price from a high level in the early stage is a strong adjustment in the rising market, and the upward trend of gold has not changed.

Strong support area is an important callback support area in the rise of gold price, and it is also a decision-making area for investors to wait and see or clear their positions. Once the gold price returns to the upward trend after running in this region for a period of time, it may mean that the strong consolidation has ended and the gold price will regain its upward trend. At this time, the investment decision is still based on holding shares to rise or absorbing on dips. Once the gold price breaks through this strong consolidation area, investors should be highly vigilant and clear their positions at any time.

When this strong consolidation area is effectively broken down, it may become an important pressure area and a strong pressure area for the future upward trend of gold prices.

(3) The last support area

The last support area in the rising market refers to the area between the two gold lines of 0.5-0.6 18 when the gold price rises. This area is an important area to judge whether the gold price rise is over, and it is also the last area where the main force may support the market.

When the gold price runs in the range of 0.5-0.6 18, it shows that the rising market is not over yet, and the possibility of gold price rising again still exists. Once the gold price effectively breaks through the 0.5-0.6 18 area, it means that the rising price of gold is coming to an end, and the possibility of the downward price of gold is increasing day by day. Jin Jinsan believes that investment decisions at this time should be based on holding positions and waiting.

(4) unsupported area

The unsupported area in the rising market refers to the area where the gold price runs below the 0.6 18 golden line at the end of the rising market. 0.6 18, the gold line, is an important support line for the rising market. It can not only show the limit position of callback consolidation in the rising market, but also judge whether this callback consolidation is the normal consolidation in the rising market or the beginning of a new round of falling market. If the gold price effectively breaks through the line of 0.6 18, it means that the original upward trend of gold has ended and the price will turn from the original upward trend to a downward trend.

Like the pressure-free zone, the unsupported zone here does not mean that the gold price has no support, but that when the gold price runs in this zone, the support in this zone is very small and the price is mostly negative. Since then, the only support point for price operation is at the starting point of this round of rising market. For foreign gold that has just entered the unsupported area, the only investment decision of investors should be to hold positions and wait and see.

Judging Support and Pressure Zone (Ⅱ)

2. Callback support area

In a relatively large-scale decline, according to the golden section standard, the operation situation can be divided into four areas from top to bottom, namely, unsupported area, strong pressure area, final resistance area and no pressure area.

(1) unsupported region

Unsupported area in a falling market refers to the area below the golden section line 0.6 18 during the price rise and fall of gold. In a big down market, the price of gold will generally rebound several times, and in this upward rebound process, as long as the price of gold always runs below the gold line of 0.6 18, the upward and downward trend of foreign gold will continue. At this point, investors' investment decisions should be based on holding positions and waiting.

Unsupported areas in a falling market are very important areas for investors. In the market where value investment prevails, investors can't buy stocks whose fundamentals have deteriorated or started to deteriorate because of low prices, because there is a saying in the stock market that "the bottom can't be easily judged in the process of stock market decline". Therefore, in the face of those stocks running in unsupported areas, investors' best operating strategy is to hold positions and wait and see.

(2) Strong pressure area

The strong pressure area in the downtrend refers to the area between the two golden lines of 0.6 18-0.5 during the downtrend and rebound. When the price of gold rebounded to the range of 0.6 18-0.5 after a relatively large decline, it indicated that the price had touched an important strong resistance area.

If the price can effectively stand firm or break through this strong resistance area, it indicates that the upward rebound trend of the price will continue. If the price only touches this area, it will turn around and run down again, which indicates that the price rebound is coming to an end and the price will start a new round of decline.

For most transactions, after a relatively large rebound, the market encounters strong resistance near this strong pressure area, and the probability of falling again is quite high. Therefore, when the price runs to this strong resistance area, investors should pay close attention to the running trend of the price and be ready for short-term selling at any time.