Tendency line

Claiming tendency line rise the two company of above low point in quotations line as well as is declining the two company of above high point in quotations line, the former is called as uptrend line, the latter is called as downtrend line. It can show the support position of share price rising if the function of uptrend line lies in , once share price falls in fluctuation process to break , this line signifies that quotations may appear to turn on the contrary , turns by rise to fall; The function of downtrend line lies in can show share price to be declining the resistance that picks up in process, once share price breaks through this line upward in fluctuating , signify share price may stop fall to return rise.
Investor should notice
Tendency line basis the length of share price fluctuation time minute is long-term tendency line , mid-term tendency line and the tendency line of short period, long-term tendency line should select to fluctuate for a long time in order to draw line basis, mid-term tendency line is the company of mid-term fluctuation point line, and the tendency line suggestion of short period uses 30 minutes or in 60 minutes, the fluctuation point of K line picture links line.
The tendency that draws line the experiment line that should draw difference as far as possible first , after share price changes with a time, retaining process verify , can reflect fluctuation tendency , have the tendency line of analysis meaning.
The correction of tendency line. With the correction of uptrend line as example, when share price falls , after broken uptrend line, having return to this tendency line top quickly, should low some one of use is linked with new low point to receive , get the new uptrend line after correction , can reflect the tendency of share price more accurately.
Tendency line should not be too
When grinding to sentence tendency line , should guard against the trap that banker makes using tendency line. Generally speaking, before share price has not broken through tendency line, uptrend line is the support that is declining each time, downtrend line is the resistance of share price each pick up. When share price breaks through tendency line, closing price and tendency line have the price difference more than 3% , and have the coordination that concludes quantity. It may be arisen very that share price turns over when breaking through tendency line, if arising gap to turn tendency , and after appearance turns on the contrary, share price tendency has certain intensity. The resistance of share price breakthrough downtrend line need to conclude the coordination of quantity , normally when going up , and it will not be magnified normally that when share price breaks through uptrend line downward, closing the business measure , and it is to conclude quantity after breaking through in few days to magnify rapidly.