In technical analysis, the trend of price running above the annual line is generally called bull market, and the trend of price running below the annual line is called bear market, so the annual line is called the dividing line between bull and bear.
In the stock market, the dividing line between bull and bear is often judged by the annual line. If the index or stock falls below the annual line, it means that the bull market is turning into a bear market. Similarly, when the index or stock breaks through the annual line suppression, the market turns from a bear market to a bull market.
Extended data:
In the stock market, the dividing line between bull and bear is often judged by the annual line. If the index or stock falls below the annual line, it means that the bull market is turning into a bear market. Similarly, when the index or stock breaks through the annual line suppression, the market turns from a bear market to a bull market.
In technical analysis, the annual line generally refers to the 250-day moving average. Regardless of the volume factor, the annual line value is also the average transaction cost of 250 days. When analyzing the long-term trend, the annual line and semi-annual line are valued by market researchers, and the annual line is called the dividing line between bull and bear in the long-term trend of the market.
However, in many cases, there are other methods to calculate the boundary between bull and bear, which are not limited to the 250-day line, just like looking at the 5-day line in the short term, but some people look at the 7-day line.
As far as the current market is concerned, the stock index has continued to plummet recently, constantly testing the support of the annual line. However, because the fundamentals have not been fundamentally reversed, the momentum of corporate performance growth and RMB appreciation has not changed, which determines that the long-term bullish trend of the market will continue. Therefore, at this time, the decline of the stock index is the coming of opportunity, that is, when the more you buy, the market may rebound strongly at any time.
References:
Baidu Encyclopedia-the dividing line between bull and bear