How to draw trend lines and key points?

From the perspective of tangent theory, the trend line is a part of it, which is a straight line formed by connecting the lows and lows of the fluctuating price or the highs and highs. Forex Direct Financial Investment Training reminds traders that if the price is run according to the running mode of a low point higher than a low point, the drawn trend line is an upward trend line; if the price is run according to the running mode of a high point lower than a high point, the drawn trend line is a downward trend line. There is also a horizontal extension of the lows and highs of the price, without obvious upward and downward trends, which is sideways finishing or box finishing. The trend line can be divided into a support line and a pressure line, connecting the lows and lows of the price band into a straight line, which is the support line; connecting the highs and highs of the price band into a straight line, which is the pressure line. The length of the trend line is proportional to its importance. The distance between the first and second points of the long-term trend line and the medium-term trend line should not be too close. If the distance is too close, the importance of the formed trend line will be reduced.

The support line and the pressure line can be transformed into each other. When the foreign exchange price breaks through a support line from top to bottom, the original support line may be transformed into a pressure line; and when the price breaks through a pressure line from bottom to top, the original pressure line may also be transformed into a support line. Forex Financial Investment Training points out that at some point, we can find that the exchange rate runs between two parallel trend lines, the upper line is the pressure line and the lower line is the support line. The two trend lines constitute a channel or pattern.

The angle of the trend line is crucial. An angle that is too flat shows that it is not strong enough, and it is not easy to generate a big market immediately. A trend line that is too steep cannot last, and it is often easy to change the trend quickly. The famous angle line master Gann believes that the trend line at a 45-degree angle is very reliable, which is what Gann calls the 1 × 1 angle line.

Key tips when drawing trend lines:

1. Trend lines are divided into long-term trend lines, medium-term trend lines, and short-term trend lines according to the length of time for price fluctuations. The longer the time period, the higher the effectiveness of the trend line.

2. Foreign exchange financial investment training indicates that the greater the number of highs or lows connected by the trend line, the stronger the effectiveness.

3. The trend line should not be too steep, and the reliability of the 45-degree angle is high. Otherwise, it is easy to be broken through by horizontal sorting and lose analytical significance.