Notes The importance of the trend depends on three aspects:...
Notes
The importance of the trend depends on three aspects: time period, trendline length, and the number of times the price is touched. The trend at the weekly level is more important than the daily level, the longer the duration of the trend, the more important it is, and the more times the price touches the trend, the more important it is.
In practice, we will find that the steeper the angle between the trendline and the horizontal line, the shorter the duration of the trend, and the flatter it is, the longer the duration.
The importance of the trend depends on three aspects: time period, trendline length, and the number of times the price is touched. The trend at the weekly level is more important than the daily level, the longer the duration of the trend, the more important it is, and the more times the price touches the trend, the more important it is.
In practice, we will find that the steeper the angle between the trendline and the horizontal line, the shorter the duration of the trend, and the flatter it is, the longer the duration.
In addition, the volume is also an important indicator to confirm the trend. In an uptrend, the volume expands as prices rise and contracts as prices fall. In a downtrend, the volume expands as prices fall and contracts as prices rise. If the volume and stock price are inconsistent, it is a signal of a trend reversal.
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