The most important investment principle for practical investors is to follow suit. Trend line refers to the curve of the running direction of stock price. Knowing the basic definition and drawing method of trend line, keeping a close eye on its main function and mastering its main operating principle can make full use of trend line and finally achieve the goal of investors' ultimate profit. The significance of trend line analysis!

I trend line: basic definition

As we all know, the trend mainly refers to the direction of stock price operation, which is the embodiment of the orderly characteristics of stock price fluctuation and the main performance of the biased characteristics of stock price random fluctuation. Connecting these fluctuating stock prices into a line can make a certain judgment on the future trend. The concept of trend mainly refers to the direction of stock price operation, which is the embodiment of the orderly characteristics of stock price fluctuation and the main performance of the biased characteristics of stock price random fluctuation. Trend is actually the most famous kinematics in physics-the true presentation of Newton's law of inertia in the stock market, and it is the most fundamental and core factor in technical analysis. Even the national macroeconomic operation has a development trend at all stages, and all industries have obvious development trends at different stages.

Second, the trend line: the basic drawing method

The so-called "one foot in the world" actually refers to the use of trend lines. Investors should always remember that the trend is your friend, always follow the trend and don't go against it. Learning to use the trend line to determine the direction of the trend is one of the basic skills necessary for investors.

Trend line is actually a practical method to simplify the trajectory and direction of stock price fluctuations, which can filter out smaller stock price fluctuations and let us grasp the direction and trend of stock price fluctuations simply and clearly.

The drawing method of (1) trend line is to connect the low point and the low point of stock price fluctuation, or a straight line connecting the high point and the high point.

If the stock price runs at a low point higher than the low point, the drawn trend line is the upward trend line, that is, the support line; If the stock price runs at a high point lower than the high point, the drawn trend line is the downward trend line, which is also the pressure line; The high and low points of the stock price also extend horizontally, and there is no obvious trend of ups and downs. This is called lateral consolidation or box consolidation.

(2) Trends can be divided into long-term trends, medium-term trends and short-term trends according to the length of time. A long-term trend generally consists of several medium-term trends, and a medium-term trend consists of several short-term trends.

Generally speaking, the drawn trend line can be formed only by two low points or high points, but the validity of the trend line can only be confirmed by touching it at least three times. The more times the trend line is touched, the more important it is. The longer the duration, the better the effect. Learning to use the trend line to determine the direction of the trend is one of the basic skills necessary for investors.

Third, the trend line: the main role

Trend lines can help investors track trends. That is, look for the trend of stock price movement, buy and hold when the trend rises; When the trend goes down, sell stocks and wait and see with money. Until it is confirmed that the trend has not reversed and the trend line has not been broken, the long and short operation strategy remains unchanged. Specifically, it has the following functions:

(1) trend line has a certain inhibitory effect on the future fluctuation of stock price.

In essence, this constraint is mainly reflected in the psychological suggestion of investors. For example, when the stock price falls to a major trend line, the holder will not sell it for the time being, depending on the support of the trend line before making a decision, while the off-site watchers think it is an opportunity to buy. Once the buyer's power is greater than the seller's power, the actual buying power generated by the investor's psychological collection will make the stock price rebound.

Similarly, when the stock price falls below a major trend line, the holders think that the stock price will fall again, so they sell it one after another. Once the seller's power is greater than the buyer's power, the actual selling power generated by the investor's psychological collection will accelerate the stock price decline. The psychological implications of the pressure line for investors also exist.

(2) After the trend line is broken, it means that the next trend of stock price fluctuation will be reversed. The more important and effective the trend line is broken, the stronger the signal of its turning.

(C), the support line and pressure line conversion.

The support line and pressure line in the trend line can be transformed into each other.

When the stock price breaks through a support line from top to bottom, the original support line is likely to become a pressure line. At a certain moment, we can find that the stock price runs between two parallel trend lines, the upper line is the pressure line and the lower line is the support line. This situation is called box finishing. Trend lines often need to be used in conjunction with volume. When the stock price breaks through the pressure line from bottom to top, it often needs large volume support. Without the support of volume and market background, it is often a false breakthrough.

(4) Trend line angle

The angle of the trend line is very important. Generally speaking, the trend line with an inclination angle of 45 is the most meaningful, stable and lasting. Too gentle upward trend line indicates that the output is not enough and it is not easy to produce a big market immediately; The steep uptrend line shows that the stock price will not last long if it rises too fast, and it is often easy to change the trend angle quickly, and adjust the angle of the uptrend line to the vicinity of line 45, but it is not a trend reversal. So is the downtrend line.

Fourth, the trend line: the operating principle (using hand care training software to simulate dynamic training and establish your own trading system)

Stock trading, "a ruler travels all over the world, to put it bluntly, it is the application of the trend line." This is the most critical problem in the application of trend line. The traditional trend theory has no accurate conclusion, only people's experience summary. We need to grasp three principles in actual combat:

(1) Closing Price Breakthrough Principle: It is more important for the closing price to break through the trend line than the highest and lowest breaking trend lines of the day.

(2), 3% breakthrough principle: mainly used to identify long-term trend line breakthroughs. After breaking the trend line, the farther away from the trend line, the more effective the breakthrough. This principle requires the closing price to break through the trend line by at least 3%. As long as it reaches this range, it is effective, otherwise it is invalid.

(3) Three-day principle: Once the stock price breaks through the medium and long-term trend line, its closing price must be on the other side of the trend line for three consecutive days. After breaking the trend line, the longer you stay on the other side of the trend line, the better the breakthrough effect.

Significance of trend line analysis

Trend analysis, also known as trend curve analysis, curve fitting or curve regression, is the most studied and popular quantitative forecasting method so far. It is to fit a curve according to the known historical data, so that this curve can reflect the growth trend of the load itself, and then estimate the load forecast value at a certain time in the future according to this growth trend curve.

Commonly used trend models include linear trend model, polynomial trend model, linear trend model, logarithmic trend model, power function trend model, exponential trend model, logistic model, gompertz model and so on. The process of finding the trend model is relatively simple, and this method itself is a definite extrapolation. In the process of processing historical data, fitting curves and obtaining simulated curves, random errors are not considered. In principle, the precision of the curve fitted by trend analysis is consistent throughout the fitting interval. In many cases, choosing a suitable trend curve can really give a better prediction result. However, the results given by different models will be very different, and the key to use is to choose the appropriate model according to the regional development.

Can stocks be bought in the morning and sold in the afternoon?

Normal stocks are bought in the morning and cannot be sold in the afternoon. China's A-share market implements the T+ 1 trading system, that is, the stocks bought on the same day cannot be sold on the same day, but can only be sold after the opening of the next trading day.

The stock we bought that day has not been confirmed, and it can only be confirmed on the next trading day. Unconfirmed stocks are not profitable and cannot be traded, so stocks bought in the morning cannot be sold in the afternoon.

But in the case of a warehouse, we can sell the warehouse. To give a simple example: For example, if an investor buys 500 shares of a stock on the 23rd, the stock price falls on the morning of the 24th, the investor adds 500 shares, and the stock price rises on the afternoon of the 24th, then the investor can sell the stock bought on the 23rd.

The trading hours in the A-share market are from 9: 30am to 11:30am from Monday to Friday and from1to/5pm in the afternoon. The stock market is closed on legal holidays and cannot be traded. Negotiate transactions according to the rules of price priority and time priority.

It should be noted here that stocks bought on the same day must be sold on the next trading day, not the next day. For example, if you buy a stock on Friday, you can only sell it on Monday, because the stock market is closed on weekends and you can't trade.