Trend Line-about Trend Line
Trend Line is the essence of the trend point or tip, otherwise it is a straight line mind. Therefore, the trend line should be drawn only truly correct: Trends and level of sub-period, the trend line should correspond to the strict definition of the trend line and 5,20 time averages are basically the same. Interlacing is not as average trends or changing its stance.
The trend line - a. Pattern analysisConnect high price wave downward trend line for line, connected linear low stock price volatility for the rising trend line. According to the time fluctuations can be divided into long-term trend line (connecting the long-term fluctuations in point) and medium-term trend line (connecting the medium-term fluctuations in points).
Trend line - 2. Market implications The trend line shows that when stock prices move to its fixed, it is very likely to continue to move along this line.
(1) When the rising trend line break when the ship is a signal. In the absence of break before the rising trend line is every drop support.
(2) When the decline trend line breakthrough is a signal into the goods. Did not rise at the break before the trend line is down every rebound resistance.
(3) a trend towards fixed-mobile stock with the longer, the trend of more is more reliable.
(4) The upward trend in the long run, every change in a change in volume than the correction of high, when there are very high turnover occurs, which could signal the end for the medium-term changes, tight as the come will be the reverse trend.
(5) In the medium-term changes in short-term fluctuations in the end, most of them have a high turnover, vertex more than the bottom of the case, but the decline in a panic often appear at the bottom of a very high volume, it is because the vertex , the stock market boiling, a large number of individual investors blindly rush, big and took the opportunity to hand-sell, at the bottom of the stock market plunged after a period of fear, ignorance and retail confidence has been shaken, see the price we sold, at a time when real long-term downward trend has reached the final stage of So big with a large number of buying hand-started, resulting in high volume.
(6) a rising trend line for each needed two clear at the bottom before deciding, every one down trend line, you need two vertices.
(7) the trend line with the level of the more steep angle into a more easily sideways by a short break, so the more flat the more a technical sense.
(8) stock price rise and fall in the trend in a variety of late, there are accelerated and the accelerated decline of the phenomenon. Therefore, the city or the bottom of the potential reversal of the apex, mostly away from the trend line.
Trend line - 3. Painting
(1) First have to find two different levels and have a certain level of distance between high (or low), and thus tentatively draw down (or up) in a straight line.
(2) If the support line is drawn up, then the price from the second low to have a certain distance, such as near or above the previous resistance levels, the trend line can be recognized by the resistance line drawn down the situation is the opposite. The third low (or a third high-point) the emergence of the trend line is the effectiveness of verification.
(3) the rate of price changes may be speeded up or slowed down the scope could be expanded or reduced, in some cases, the trend line should subsequently be adjusted accordingly, so as to adapt to the current trend line price changes.
(4) The pie chart. When the trend line at the same origin, the slope for different adjustments and kept the original trend line will be formed by a multi-root support line (or resistance) constitute the pie charts.
(5) with the dual map. Increase in resistance in turn can also be connected into a rising straight line, this line is called pipe-line, the same drop in turn support level can also be connected into a pipe line. Pipe line and the basic trend lines can be formed together with several kinds of special significance to the price of a shape.
(6) triangle diagram, that is, reverse two-lane diagram. In the stock chart drawn on the same rising trend line and the downward trend line, these two trend lines will be a price to build a kind of basic shape: a triangle diagram.
The trend line - 4. Points to Note
(1) The rising trend line connecting the low volatility, not all fluctuations in the high points; a downward trend line connecting the fluctuations in the high points, not all low volatility.
(2) When the stock break through the trend line, a breakthrough in reliability can be judged from the following points:
① If the day trading period exceeded the trend line, but its closing price did not exceed the trend line on the outside, this is not a break, you can ignore it, but this trend line is still useful.
② If the closing price broke the trend line, we must be trusted to go beyond the 3%.
③ When the stock price up trend line break down the resistance requires a large number of transactions to increase co-ordination; but down below the rising trend line support is not necessary so often break the day's volume does not increase, however, the day after will be at the break there is increasing phenomenon.
④ When the trend line break occurs when the gap, this breakthrough will be strong. In the upward trend among the above-mentioned gap is far more than a few gaps, but we must find the good, the short period of time or the biggest gap, the next figure marked by purple arrows are all places: a breakthrough gap Of course, some gaps there is no callback, direct start pulled up, they run into such gaps, as long as the volume and price with the good, group-buying auction is always right.
(3) experience in technical analysis often draw on the chart of each of the different experimental trend line, trend line when prove meaningless, they will be the rub off, leaving only the analytical significance of the trend line. In addition, the amendment will also keep the original trend line, for example, when an upward trend in share price fell below the trend line then quickly picked up the top line, analysts should be low and the latest from the first the formation of a low re-draw a new line , or from the second low, and new lows revision of the trend line more effective.
