cautions The importance of a trend depends on 3 aspects: th...
cautions
The importance of a trend depends on 3 aspects: the time period, the length of the trend line, and the number of times the price has been hit. The trend at the weekly level is more important than the daily level. The longer the trend lasts, the more times the price hits the trend, the more important it is.
In practice, we find that the steeper the angle between the trend line and the horizon, the shorter the trend duration, and the longer it calms down.
The importance of a trend depends on 3 aspects: the time period, the length of the trend line, and the number of times the price has been hit. The trend at the weekly level is more important than the daily level. The longer the trend lasts, the more times the price hits the trend, the more important it is.
In practice, we find that the steeper the angle between the trend line and the horizon, the shorter the trend duration, and the longer it calms down.
In addition, transaction volume is also an important indicator for confirming trends. In an upward trend, turnover increases when prices rise and shrinks when prices fall. In a downward trend, turnover increases when prices fall and shrinks when prices rise. However, if the trading volume does not match the operation of the stock price, it is a sign of a trend reversal.
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