Resistance Support Indicator 5, Resistance Support Indicator

The resistance support indicator is to study the stock price track or the trading intensive side, to find the relevant factors that restrict the stock price to rise and fall, so as to give some important technical prices with important reference value to help investors in the buying and selling operation.

The resistance line refers to the fact that when the stock price rises to a certain height, there are a large number of sell orders or buy orders to take over weakly, so that the continuation of the stock price is blocked. The support line refers to the fact that when the stock price reaches a certain height, the buying gas turns strong and the selling gas weakens, so that the stock price stops continuing.

From the perspective of supply and demand, support represents concentrated demand, while resistance represents concentrated supply, and changes in supply and demand. This leads to restrictions on the movement of stock prices. To put it simply, it's the kind of place where there are a lot of traps.

Under himself, Hoffman Adaptive**,

Support and resistance lines.

When the exchange rate in the market reaches a certain level, it often does not continue ** or **, and it seems that there is a resistance line that acts as a block or support for the exchange at this level, which we call the resistance line and the support line respectively.

The so-called resistance line refers to the fact that when the exchange rate rises to a certain height, there are a large number of selling orders or buying orders that take over weakly, so that the continuation of the exchange rate is blocked. The support line refers to the fact that when the exchange rate reaches a certain height, the buying gas turns strong and the selling gas weakens, so that the exchange rate stops continuing. From the perspective of supply and demand, "support" represents concentrated demand, while "resistance" represents concentrated supply, and changes in supply and demand in the foreign exchange market lead to restrictions on the movement of exchange rates.

Both resistance and support lines are important methods of graphical analysis. In general, if the pair moves up and down in a certain area, and the accumulated volume in this area is very large, then if the pair crosses or falls below this area, it will naturally become a support or resistance line. These levels, which used to have a large volume, often change from resistance to support or vice versa

Once the resistance line is crossed, it becomes the support line for the next downtrend; Once the support line is broken, it will become the resistance line for the next rally.

1. The principle and application of the support line.

On the line chart, as long as the lowest price appears many times in the same small range, then connect two same minimum levels and extend them to form a support line, which vividly depicts the imbalance of demand greater than supply in a certain price range. When the trading price falls into this range, the seller is reluctant to sell due to the sharp increase in buying sentiment, which makes the price turn around and rise. Its intrinsic essence is:

Due to the recurrence of this price range in the previous stage, a large volume has been accumulated, and when the ** is close to the support line from top to bottom, the short seller's profit chips have been cleared, and there is no pressure to sell short chips in his hands; The long holder holds the currency to absorb the low and form demand; Those who are indecisive are deeply trapped, and the chips are locked and not easily cut. Therefore, in this price range, ** is less than demand, which naturally forms a strong support foundation. In addition, due to the fact that ** has turned back here many times, it has also established the psychological support price range of the majority of investors, as long as there is no extraordinarily negative news introduced, **will be supported**.

1) The easiest thing to do is to look at the highs and lows resistance of the previous chart: 1previous highs; 2.Above**, time.

The longer the **, the greater the resistance; 3.Chip-intensive area (transaction-intensive platform); 4.technical analysis of key points; （

Such as box, boll, etc.) 5Integer points (price levels) also give people psychological resistance;

Support: In principle, resistance levels that have been effectively broken through will in turn become support.

2) The second is through the ** system, so that the previous highs and lows coincide with one or several ** systems.

The resulting system will provide support or resistance to the system.

3) To be more complicated, it is to use the trend line system, which requires you to look at the entire band.

Draw a trend line.

4) The more complicated thing is to calculate the size and structure of each wave type according to the wave theory.

to determine resistance and support levels.

In addition, it is more likely to use trend lines, ** and wave theory to make a comprehensive judgment, which is a lot of calculation process.

5) More complicated is to do probability statistics on the results of comprehensive judgments, calculate trend lines, **, and.

The result of the wave theory forms the solution set of the matrix, and makes this solution set conform to the current ** general fluctuation area.

and then extract the resistance and support levels from this solution, this method is quite computational, I did it once and never wanted to do it again, but it was very accurate.

6) Resistance and support can also be judged by the previous **, or by subtracting the most from the recent highest point of the stool smile.

The low, its 1 2, 1 3, 2 3 are also relatively strong resistance and support levels, which is the view of the Dow Theory.