The stock trend is an important basis for us to judge buying and selling, and understanding the stock trend is of great significance to investors' investment. What are the stock trends? How should I apply it?
The trend is the direction of market movement. The trend can generally be represented by a straight line connecting high points or low points. The trend line is a form of pressure and support.
The rising trend is the support point. Every time when the stock price falls near the rising trend line, you should consider buying, while when the stock price falls below the rising trend line, it means that the support is invalid and you should consider selling.
The downtrend line is a pressure point. Every time when the stock price rebounds near the downtrend line, you should consider selling, unless the stock price breaks through the downtrend line upward, indicating that the pressure is invalid, and the trend may have reversed upward, you should consider buying. When we draw a trend line, it does not mean that the stock price will run along this trend line in the future, and the trend line must be broken.
Trends can be divided into upward trend, downward trend and horizontal trend according to wind direction. Trends can be classified into major trends, minor trends and temporary trends from the level.
The rising trend line mainly has the following characteristics: 1. It appears in the rising trend; 2. Reveal that the direction or trend of stock price movement is upward; 3. When the stock price moves above the rising trend line, investors should be bullish; 4. The more times the rising trend line is touched, the higher its reliability is; 5. The greater the upward tilt angle of the trend line, the weaker its supporting effect.
2. Downward trend: The straight line connecting the high points moving downward is the downtrend line, and the downtrend line is a downward oblique line connecting the first or most representative two high points to reveal the downward direction of the stock price or index.
In the long-term upward trend, when the stock price meets the long-term upward trend line, it should be long in the long run; When the stock price meets the medium-term upward trend line, it should be long based on the middle line; When the stock price meets the short-term upward trend line, it is mainly short-term long.
In the long-term downward trend, when the stock price encounters the long-term downward trend line, it should mainly be short in the long run; When the stock price meets the medium-term downward trend line, it is mainly short on the middle line; When the stock price encounters the short-term downward trend line, short-term short selling is the main way.
Two trend classifications distinguished from speed:
Fast Trendline and Slow Trendline. The fast trend line runs faster than the slow trend line, and its maintenance time is shorter than the slow trend line. The fast trend line reveals the short-term trend of the stock price or index, which is an important basis for radical investors to go long and short. The slow trend line reveals the long-term trend of stock prices and indexes, which is an important basis for prudent investors to go long and short.
