Use of support line and pressure line
1、 Function of support line and pressure line
1. The meaning of support line and pressure line.
The support line is also called the resistance line. When the stock price falls near a certain price, the stock price stops falling and may even rise, which is caused by many parties buying here. The support line plays a role in preventing the stock price from continuing to fall. The value that prevents the stock price from continuing to fall or temporarily prevents the stock price from continuing to fall is the position of the support line.
Pressure line is also called resistance line. When the stock price rises to a certain price, the stock price will stop rising, or even fall back. This is because the short side sells here. The pressure line prevents the stock price from rising. The value that prevents or temporarily prevents the stock price from rising is where the pressure line is.
Some people tend to have such a misunderstanding that only in the falling market can there be a support line, only in the rising market can there be a pressure line. In fact, there are pressure lines in the falling market and support lines in the rising market. However, in the falling market, people pay more attention to where they fall, so they care more about the support line; in the rising market, people pay more attention to where they rise, so they care more about the pressure line.
2. The function of support line and pressure line.
As mentioned above, support and Qingli line will prevent or temporarily prevent the stock price from moving in one direction. We know that there is a trend in the change of stock price. To maintain this trend and maintain the original direction of change, we must break through the obstacles that prevent it from moving forward. For example, to maintain the falling market, we must break through the resistance and interference of the support line to create a new low; to maintain the rising market, we must break through the resistance and interference of the rising pressure line to create a new high. It can be seen that the support line and pressure line will be broken sooner or later. They are not enough to prevent the stock price from keeping its original direction for a long time. It's just a pause.
At the same time, the support line and pressure line have the possibility of completely preventing the stock price from changing in the original direction. When a trend comes to an end, it is impossible for it to create new low prices and new high prices. In this way, the support line and pressure line are extremely important, and they are the places where huge profits can be made,
In the upward trend, if the next operation reaches a new high, that is, it does not break through the pressure line, the upward trend will be in a very important position. If the stock price breaks through the support line of the upward trend in the future, it will produce a strong warning signal that the trend has changed. It usually means that this round of upward trend has ended, and the next step is to move forward The process of decline.
If the downward trend of the stock price is at the end of the next breakthrough, the key point is that the stock price will break through the downward trend
[disclaimer] the publication of this article by finance managers for the purpose of transmitting more information does not mean that they agree with their views or confirm their descriptions. The content of this article is for reference only, and does not constitute an investment proposal. Investors operate on this basis at their own risk