Several principles to determine the true or false breakthrough
read:2023/2/25 22:52:39
The forextradingaccountsregcashback forexter of the trend line has important analytical significance for the choice of buying, selling time, etc., and even if only the forex trading accounts maker will often take market operations based on changes in the trend line; therefore, to figure out when the trend line for the breakthrough, is a valid breakthrough or a non-valid breakthrough is essential for investors In fact, the stock forextradingaccountstype hovering above and below the trend line often occur, the error of judgment means that the market operation error, the following provides some judgment methods and market principles, but the specific situation still need to be combined with the specific analysis of the market situation (1) the closing price of the breakthrough is a real breakthrough Technical analysts have found that the closing price breakthrough convergence line, is a valid breakthrough is the signal to enter the market to fall convergence line that the counter-pressure line, for example, if the market price ever If the market price has broken through the counter-pressure line, but the closing price is still below the counter-pressure line, this proves that the market did want to try high, but the buy orders did not continue to sell to the influx, so that the stock price finally fell back at the close of the market Such a breakthrough, experts believe that it is not a valid breakthrough, that is, the counter-pressure line is still valid, the markets weak trend is still not changed Similarly, the breakthrough of the rising trend line, should see whether the closing price falls below the trend line in the chart records often have such a situation occurs: after the breakthrough of the convergence line, the stock price back to the original position, this situation is not an effective breakthrough sail instead is often a market trap (2) the principle of judging the breakthrough In order to avoid market entry errors, technical analysis experts have summarized several principles to determine the true and false breakthrough: A. found after the breakthrough, more than one day of observation If the breakthrough for two consecutive days after the stock price continues to develop in the direction of the breakthrough, such a breakthrough is a valid breakthrough, is a safe time to enter the market, of course, two days after the human market, the stock price has been a big change: the share price to buy high; the share price to throw low, but, even then, because the direction is clear, the trend has been set, investors will still be great, much better than rashly enter the market B. Pay attention to the high and low prices of the two days after the breakthrough If the closing price of a day breaks through the downward trend line (resistance line) upward development. The next day, if the trading price can cross its highest price, it means that there is a lot of buying after the breakthrough resistance line to follow up. On the contrary, when the stock price breaks through the rising trend line to move downward, if the next days trading is carried out below its lowest price, then it means that after the breakthrough line, the selling pressure is very high and it is worth to follow up and sell. For example, when the market price rises significantly, the volume also increases significantly, which means that the market has confidence in the movement of the stock price. On the contrary, although the market price rises, but the volume does not increase but decreases, which means that not many people follow up, the market has doubts about the movement of the party. However, if the volume drops rather than rises after the line is broken, then care should be taken to prevent the breakthrough from returning to the original position. In fact, some false signals of breakthroughs may be due to some large investors entering the market, the large market forced price, such as the entry of large investment companies, central bank intervention, etc. However, there are not many investors in the market to follow, the false breakthroughs can not change the overall trend. If you believe in such a breakout, you may be fooled D. Lateral movements When studying trend line breakouts, it is important to clarify one situation: the break of a trend may not be the immediate start of a new trend in the opposite direction, but sometimes the market needs to make a slight adjustment due to a sharp rise or fall, and make a sideways movement up or down. The technical analysts call the movement a digestion phase or consolidation phase. The lateral movement will form some complex graphics. means that the rising process has greater resistance; down process is bought, buyers and sellers do not give way to each other, you buy up, I throw down in a breakthrough resistance line up the trip, the lateral movement is a bottoming process, the greater its lateral degree, the greater the power to throw off the cowl state rise, and, rising cowl state is a dense area Similarly, at the end of the upward trip, the market price downward slide, there will also be Lateral movement lateral movement formed by the dense area, is often the resistance area of the future stock price rebound up, that is to say, there is not enough power, the market is difficult to break through the dense area, change the direction of decline