Trend line operation essentials and trend trading strategy application

1. The trend line judges the timing of entering the market.

(1) The price breaks upwards, and the short-term downtrend is the short-term buying opportunity.

In the mid-term downtrend, prices are mainly dominated by declines, with both highs and lows moving down. However, when the price falls for a while, it will often rebound. This kind of rebound will also have considerable returns. By grasping the short-term buying opportunity in this medium-term downtrend, you can use the short-term downtrend line, that is, the price will break through the short-term decline. The trend line is the short-term buying opportunity.

In the mid-term sideways trend, prices fluctuate in the medium term in a certain price range. At this point, you can use the short-term trend line to determine the short-term buying opportunity in this box fluctuation.

Operation essentials

A. Short-term trend, which is defined as the trend formed by stock price fluctuations from several days to 20 trading days. Therefore, the short-term trend line is also composed of a marked high or low of stock price fluctuations from several days to 20 trading days. In general, the short-term downtrend in the mid-term downtrend is longer, the rebound or short-term uptrend is shorter, while the short-term uptrend in the medium-term uptrend is longer and the adjustment time is shorter.

B. Rebound in the mid-term downtrend. It should be fast-moving and fast-moving based on short-term and long-term short-term, and once the rebound is confirmed, especially if the stock price hits a new low and continues to fall, regardless of profit or loss, it should be immediately out. Therefore, it is very important to grab a rebound in the mid-term downtrend and set up a stop loss.

C. In the medium-term uptrend, it should be based on holdings. Even if it is sold, it should be partial or temporary. When the adjustment is over, especially when the stock price breaks through the short-term downtrend line, it should be immediately replenished or even chased. Courage, because the rise has not yet ended, the new rise has begun.

(2) The price breaks through the medium-term downtrend line is the timing of the mid-line buying

When a mid-term uptrend is over and continues to fall, and after a large decline and a long time, the price volume will break through the downward trend line formed by two obvious highs in the medium-term downtrend, which often indicates that the stock will fall in the medium term. The end of the trend, and will turn into a medium-term uptrend, naturally become the best buying opportunity for the mid-line. Any one of the trading targets can use the medium-term downtrend line to find the best buying time in the middle period.

Operation essentials

A. The biggest trouble to use the medium-term downtrend line to judge the timing of the mid-line buying is that the slope of the downtrend line sometimes changes. The previous mid-term downtrend line is only a short-term rebound after the “breakthrough”, and then continues to fall. The original medium-term downtrend line needs to be revised and it will be replaced by a new medium-term downtrend line.

B. This situation mainly occurs for two reasons, that is, the stock price's decline and time are not enough. Compared with the previous increase and time, the stock price has not formed a symmetry. In this case, when the stock price hits a new low, you should stop the situation and wait for the opportunity to wait and see.

2. Trend trading strategy application

The process of the trend trading method is:

The first step: determine the market direction [Qualitative analysis]

Step 2: Determine the entry point [Quantitative Analysis]

The third step: determine the exit point [quantitative analysis]

The first step: We use the trend line + inflection point + demarcation point to determine whether the market is in an uptrend or a downtrend. In the uptrend we adopt a buying strategy, and in the downtrend we adopt a selling strategy. [determined direction]

Step 2: Determine the entry area through the inflection point or demarcation point A, and determine the accuracy according to the golden section + K line reversal [entry point]

The third step: according to the inflection point line + wave theory and fund management, etc. [point of entry]