Point-and-Figure-Chart-7.png image-25.png Trend line In addition to the above, when using point-and-figure The trend line (trend line) at an angle of 45 degrees is also introduced to help determine the current trend. As well as being used as a filter (filter) in providing trading signals which trend lines have Here\u0027s how to draw a line: In case of an uptrend, the trend line is called the bullish support line and is drawn at an angle of 45 degrees up to the right. Hand from the square below the end of the O symbol down one square as in the example picture. As long as the price stays above that line, the trend is still considered bullish. Conversely, if the trend is downtrend, the trend line is called the bearish resistance line and is drawn at an angle of 45 degrees down to the right. From the box that is above the top of the X symbol up to 1 box as in the example picture As long as the price is below the downtrend line, the trend is still considered bearish. Price Target Although the above studies has led traders to various signals In buying or selling, but try to think that If a trader knows it\u0027s happening Where is the buy signal? Even if it is a point where short-term profits can begin to come out. Before changing direction, or if knowing that it gives a sell signal, where is it? Even if it\u0027s appropriate to enter the shopping spoon before the change of direction. One method which can Used to solve such problems is to set the price objectives (price objectives), which can be done in 2 ways: 1. Horizontal count The basic principle hidden behind this method is The time interval a stock takes to consolidate is important in determining its potential move. (consolidation) is therefore used to forecast price levels. To go up to test or vice versa Measuring the spread width (Distribution) is also used to forecast the price level. To be adapted to the test which the formula for finding goals In the event that the price is rising, Hu = PL + (W X RV) 1. Hu = target price level PL = The lowest price (from the symbol O) used as the basis for the calculation. W = The number of columns used as the basis for the calculation. RV = reversal value = (box size X the number of box) 2. The price level used as a base Must be able to point out clearly. 3. The column count or W value excludes the breakout column. 4. RV is the minimum reversal. The formula used to find the target In the event that the price is declining, Hd = PH - (W X RV) Hd = target price level PH = the highest price (from signal X) used as the basis for the calculation. W = number of columns used as a basis for the calculation RV = reversal value 2. Vertical count This method is quite simpler than the first method. Which formula is used to find price targets In case the price moves up, it is Vup = minimum base price + (number of boxes in the first reversal X RV) On the other hand, the formula used to find price targets If the price is falling, Vdown = Highest base price - (number of boxes at first reversal X RV) At this point, we hope that from the above-mentioned principles Whether it\u0027s about creating a diagram as well as the form that will be given buy or sell signal This technical analysis tool called Points and Figures should provide beginner traders with the right methods and strategies. To reduce the risk Before going into the market to trade seriously
Learning to observe Slopes and Retracement A novice trader should have some basic knowledge in this regard as well. In order to use it as a tool to find a time to buy or sell. Be it the Forex, bitcoin, crypto market or the stock exchange in general, the same principles apply to technical analysis. speed_lines.png Alright, although we know the trend and the trend change. As well as preliminary trading signals But being too honest might will not be very good Flips are essential and very useful for technical analysis. The reason for this is to refer to the slope adjustment or the western language called slope zz of the trend line. LNSeD05x_mid.png From Figure 1, it can be seen that the trend has many lines and the trend is adjusted to different angles. It is not that the trend has only one line and cannot be dragged by others. The rules for drawing the line There may be a variety of methods but the most popular should understand the rules of adaptation also known as retracement. fan_basics.png From Figure 3, he said that when the price has reached a certain level, let\u0027s say 100 euros, then there is a decrease. The level the price will have The opportunity to rebound to the original trend should occur at approximately 38%, 50% or 61%, that is, if the price drops. After going up 100€, it should be able to bounce back. After going down 38€(38%), if going down 38€ and keep going down, the next support will go down to 50€(50%), it should rebound. (But some technical analysts don\u0027t give as much importance to the 50% level as the 38% and 61%) levels. However, it should not be more than 61€(61%) because if more than this Chances that the trend will change (From an uptrend to a downtrend) is already very high. Prepare yourself for the trend reversal. This rule is applied to create a speed line (Figure 3), which is a trend line. Only he has rules In this drag, he divides the height into 3 parts from the point where the price is currently moving (1) to the base (which is the base). Level where the starting point rests, so there will be 2 trend lines, right? One line shows the 38% level, the other shows the 61% level. This is just one example of the optimization of the trend line. The trend lines drawn have different slopes. According to the situation But one thing that can be seen from the example is that Every time when the share price has weakened. Down on the support line from the trend line, at least it has rebounded. Also known as rebound to see, which some people may be. It is used as a moment to exit the market. By draining stocks when there is a rebound This is suitable if the trend is downtrend, but if the trend is uptrend or is about to change from a downtrend to an uptrend, anyone who leaves the market may be spoiled because once sold. If the share price is uptrend, the person who just sold it will often cry out, “Look! I have held it for a long time. When I sell it, the price surges higher than it sold.” Therefore, in selling, you should consider it at the right time.
However, doing the analysis Knowing only the above pattern may not be enough Since sometimes we need to set point of buying and selling point, how do we know when to buy? While the trend is an uptrend, the answer that many people would say would be BUY ON SLOW. I would continue to ask: How much downward is acceptable in an uptrend? The main or method to solve such problems is Using trend lines, this will be your tool. Values for trend analysis From above we have separated the trend into 3 types, so there are 3 types of trend lines to be used as follows: UptrendSampleImage.png 1. Uptrend line The principle is not difficult at all. That is to say, the beginning We will draw a line from point 1 to point 3 (red dot) leaving the end of the line past point 3. This line is the uptrend line for the significance of this line. Or simply whether the leather is tough enough or not, it starts at the number 5 (red dot), which if the price can rebound at the number 5, that would indicate a significant uptrend line. If the price has adjusted down near this line again. It will use the predicted level on this line. Is the point used in Entering the spoon to receive shares again, such as number 7 (red dot) DowntrendSampleImage.png 2. Downtrend line The principle is reversed from the above in the sense that the line will use the old peak and the new peak as a point in the draw line, starting from point 1 to point 3 (red point) (if observed, it will find that the point 1 and 3 here are the vertices, as opposed to in the case of uptrends, which are the bottoms.) That\u0027s the difference in trend line formation. In terms of uptrend and downtrend, the measure of significance is looked at number 5. (red dot) If the stock price fails to cross the up downtrend line and has a downtrend following it, we call this downtrend line significant. This line again at point 7 (red dot) is the level where a sell-off is expected. If point 7 (red dot) still fails to break through the downtrend line, it will strengthen the downtrend line even more. trend-channel-780x482.png Parallel line, In addition to the trend line mentioned above There are times when it is necessary to create a parallel line for the reason that there are cases when the price is clearly moving within the framework of the parallel line. Thus giving rise to a technical term came up another word is channel (hereinafter called flow pipe) I don\u0027t know if it will make the picture clearer or not? The principle of drawing parallel lines is not difficult at all. From the picture, use point 2 (green dot) as a starting point. Then draw a line parallel to the uptrend line, as shown in the figure, using point 2 (green dot) as the starting point parallel to the downtrend line, which will act as resistance in the uptrend form and will act as a resistance line. Support for downtrend images. SidewaysTrendSampleImage.png 3. Sideways is movement without direction. Is not markedly So the trend line in the case of sideways is relatively smooth, parallel to the ground (flat) and the channel in the case of sideways is like Pipes placed parallel to the floor, see from the picture because it can be seen that the flow of prices or index will be under the formation of a flow that lies horizontally which the price movement along the flow pipe sideways horizontally like this It is the origin of the name sideways. trends-and-channels-1606726702.png