Chapter 183: The Controversy over Trend Line Drawing
Some time ago, Ding Xu had drawn a line for the trend of the Shanghai Index since the rebound, with the drawing function of the Sun Securities Company's stock trading software, and now the low point of 168o points on November 7 is connected with the low points of 1838 points and 1846 points on December 1 and 2, and there is a clear upward trend line. Add a parallel line above and you will have a complete ascending channel.
Since November this year, the Shanghai Composite Index has been operating in this upward channel, and the current trend line is at 1988 points, and today's Shanghai Composite Index closed at 1987 points, which has fallen below the ascending trend line.
Although it is only 1 point, it can be regarded as a preliminary break.
The Shanghai Composite Index has been running on the lower track of the rising channel for the past six trading days, which makes Ding Xu feel a little like he is on the edge of the abyss and is frightened. And today, the Shanghai Composite Index has begun to fall out of the rising channel, which is undoubtedly a blow to Ding Xu!
Correspondingly, Shen Cheng refers to three consecutive gaps, which is exactly in line with Du Yucheng's theory of "jumping three times in a row", and the next two days of sharp falls closed the third gap, proving that it is a failure gap. In addition, after falling below the rising channel since November on December 12, it has been running along the original upward trend line for five consecutive trading days, and today it has begun to move away from the upward trend line, which has formed a traction effect on the Shanghai Composite Index.
To put it in layman's terms, the elder brother is starting to go bankrupt, and the younger brother will not get any better.
The difference between bankruptcy and bankruptcy is about the same - technical bankruptcy is the beginning of shareholder bankruptcy.
Therefore, once the technology is broken, and it is not the main deception line, short-term customers should leave the market as much as possible. And do the medium and long term. It is also possible to reduce the position or liquidate the position. Make a big t. Wait for the stock price to fall to a suitable position before re-entering the market.
According to the calculation method of the downward target level of the aesthetic view of the ascending channel, the highest point of the Shanghai Composite Index in this wave of market is 21oo points on December 9, and the corresponding upward trend line is located at 1897 points, 21oo-1897 = 2o3 points. Today's break below the trend line is at 1988, and 1988 minus 2o3 equals 1785.
This 1885 point is the theoretical downward target!
"Miracle, I also drew a line, and I feel like I'm stepping on the lower band of this ascending channel today. It's not a break. Healthy living also drew a line, and then questioned, "And even if it falls below, just below one point, it is nothing, and it can be recovered at any time." You also said that after falling below the ascending channel, it cannot be recovered within three days, and it is called an effective breakdown! ”
"yes, that's why I didn't remind everyone to clear the position in the session today. But. Tomorrow, we must focus on observing the Shanghai Index. Tomorrow the ascending trend line of the Shanghai Composite Index rises to the level of 1993 points, if this position cannot be maintained. It's dangerous, we'd better clear the position, at least try to do t with half a position. ”
Ding Xu said with a solemn expression, "In addition, the Shenzhen Component Index has effectively fallen below the rising channel, which has pointed out the direction for the Shanghai Composite Index, and the Shanghai Composite Index has also begun to fall out of the downward trajectory today." At this critical moment, if the bears are ruthless enough, it is very likely that they will strengthen and let the Shanghai Composite Index gap down and fall directly through the lower track. If you have to wait until the Shanghai Composite Index effectively falls below within three days, it may cause losses. So I don't think I have to wait any longer and find a chance to ship tomorrow. ”
At this time, Qi Fei finally expressed his opinion: "Ding Xu is right, I also think it's time to wait and see." Shen Chengzhi turned his head and left the lower rail of the rising channel that had been clinging closely, which was determined to kill a group of retail investors, and I am afraid that there would be a diving trend next. ”
"You're too daring." Zhao Zheyi sneered, "Gluttonous half-immortal, you kept saying that you were a little frightened two days ago, just because of such a broken trend line?" ”
"Only those who have experienced Yan zhòng losses will be full of awe of the market!" Qi Fei sighed and replied.
"But the uptrend line is drawn in a different way. The miracle is to use the low of 5598 points of the Shenzhen Component Index on November 7, and the lows of 639o points and 6433 points on November 25 and 26 to form an upward trend line. As a result, the Shenzhen Component Index has indeed fallen below the upward trend line for seven consecutive days, and it is starting to move away today, and the pattern is very unsightly. ”
The guy loves to speculate in stocks, and suddenly a picture of the upward trend line of the Shenzhen Component Index was drawn, and a sentence was inserted, "But if you use the low of 5855 points of the Shenzhen Component Index on November 7 and the low of 6596 points on December 2, then the Shenzhen Component Index has been crawling along this upward trend line for the past few days, and it has not officially broken through until today, which is not an effective break!" ”
"yes, the guy is right." Zhao Zheyi immediately answered.
"Guy, take a look, according to my drawing, the low of November 28 at 6575 is also on this upward trendline. That is, this uptrend line connects the four lows. Ding Xu said disapprovingly, "An upward trend line, the more lows are connected, the more effective this trend line will be!" ”
"But if you follow the guy's drawing method, the three-day lows from December 17 to 19, that is, 7253 points, 7215 points, and 7361 points, are basically on his upward trend line, with a total of five lows, one point more than the upward trend line you draw, which is more effective!" Zhao Zheyi retorted.
Ding Xu sighed helplessly, this question is really difficult to argue with for a while.
The so-called trend line is nothing more than a straight line formed by connecting two or more peaks or troughs together, which is divided into rising and descending trend lines.
Since the stock price basically rises in waves, leaving many stage lows, there are many ways to draw trend lines.
One of the most important principles when drawing an uptrend line is to connect the lowest (or relative low) of a certain period of time with any low before the high, with no price crossings in between.
A common mistake is to connect to the lowest point after the highest point, which often leads to wrong judgments.
Other than that, the rest of the drawing methods are basically in line with the principle of line drawing.
However, conforming to the principle of drawing a line does not necessarily mean a valid uptrend line. For example, from the low point of the stock price to the low point of the rise, there must be only one that is the most effective and meaningful.
This is a process of removing the false and preserving the true, and it is also one of the most important homework for stockholders.
How to find the most effective uptrend line? Generally speaking, the longest uptrend line with the most lows is the most effective.
To get back to the point, this picture drawn by the guy who loves to speculate on stocks is not new. In fact, many stock critics, analysts and famous bloggers have also adopted the method of the guy who loves to speculate in stocks, so they have always insisted that the Shenzhen Component Index has not fallen below the upward trend line, and until today, it is only the first time it has fallen below, and it is not an effective break.
But Ding Xu and Qi Fei both firmly believe that their painting method is correct, because this painting method has four lows connected together in November, while the guy's painting method of stock speculation only has two lows connected together in November, which is less effective than the one painted by Ding Xu. It's just that in recent days, the lows of the Shenzhen Component Index have continued to fall on this upward trend line, which seems to have allowed stock commentators to find a basis.
It's just that no matter which of these two uptrend lines is correct, at least until today's close, it has been broken, and it is just a matter of whether it is valid to break down.
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Thank you for your support, especially the strong support of the alliance leaders such as Daiki in the miracle group and the old group friends such as Yuying, as well as the two hardcore book friends who became the alliance leaders yesterday. Everyone voted a lot for the Dream Cup, and finally let me succeed in the counterattack, and the chrysanthemums exploded all the way, which was really cool......
In the end, the dust settled in the preliminary round of the Dream Cup, although the competition has been very fierce in the past few days, but our "Level Retail Investor" still ranked seventh with 12,297 votes, and finally squeezed into the top ten and entered the semi-finals, which is very face-saving. Heartfelt thanks to all of you, I wish you all a happy National Day, and the stock will rise sharply after the holiday!
Starting today, the monthly pass will be doubled, and students with guaranteed monthly tickets should vote early, thank you for voting for your monthly tickets today.
Although the National Day holiday, but my family is also using the seven-day holiday to re-engage in the decoration of the garden, these days to buy a lot of materials, but also a variety of decisions, as well as help and hand over cigarettes and water or something, is still very busy, only after dancing aerobics at night there are two hours of code words, so it is still a day of a chapter of the guarantee, please understand. (To be continued!)
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