The golden section law refers to the classical proportional standard in painting, sculpture and architecture. It is based on the ratio of two unequal parts in a whole, that is, the ratio of a small part to a large part is equal to the ratio of a large part to the whole. When applied to portrait schema, the golden section law stipulates that the length of a person from foot to knee is equal to half the length of this leg. Similarly, the length of one leg is half the height of the whole body. The so-called ideal proportion of a rectangle is also determined by the golden section law. In a rectangle conforming to the golden section law, the diagonal length of the square formed by the long side and the short side is equal. The ratio calculated by this ratio is about 0.6 18, which is about 5 to 8. So according to the golden section law, the short side of a rectangle is about 0.6 18 of the length of the long side. According to Euclid's geometric principle, Vitruwe calculated this ratio in BC 1 century and wrote it into his book Ten Books on Architecture. In this book, he established the standard architectural proportions of columns, spaces and the whole house. Of course, he also mentioned that corresponding changes should be allowed according to the actual situation.

The golden section law is also called the golden section rate. Technical analysts apply this law to the stock market, foreign exchange market and futures market to discuss the high and low points of price changes. The accuracy is quite high, so it has been used ever since.

The most basic formula of the golden section law is to divide 1 into 0.6 18 and 0.382, and then evolve into other calculation formulas according to the actual situation. When the short market ends and the long market arrives, investors are most concerned about where the "top" is. In fact, there are many factors that affect the exchange rate changes, and it is impossible to accurately grasp the highest point of the rising market. What investors can do is to calculate the possible exchange rate reversal point, that is, the pressure point, according to the golden section law as the reference data for operation.

When the exchange rate rises far away from the low price, referring to other technical indicators, such as the average price line system, K-line, slow-paced and fast-paced stochastic indicators, according to the golden section law, when the rising range approaches or reaches or exceeds 0.382 and 0.6 18, its rising range may change. That is to say, when it rises to 38.2% or reaches or exceeds 38.2% or 6 1.8%, there will be back pressure, which may end the rising market and begin to reverse the decline.

In addition to the fixed 0.382 and 0.6 18, the golden section law also has half pressure points, 0.382 and 0. 19 1, which is also an important basis. Therefore, when the rising market unfolds, it is necessary to determine the rising ability of the exchange rate and the price that may be reversed in advance to prepare for operation at any time. The lowest point of the previous stage of the falling market can be multiplied by 0. 19 1, 0.382, 0.6 18 and1; When the exchange rate has doubled, its back pressure points are 1. 19 1, 1.382, 1.6 18, 1.809 and 2; And so on. When the bull market ends and the short market begins, investors are most concerned about the "bottom", and they can also use the golden section method to predict and calculate the support points and prepare for the bargain-hunting.