How to make full use of trend lines in spot gold trading
Spot gold is a spot transaction, which means delivery after the transaction is completed or within a few days. Spot gold is an international investment product. Each gold company establishes a trading platform and conducts online trading transactions with market makers in the form of a leverage ratio to form an investment wealth management project.
So, how to make full use of trend lines in spot gold trading.
The trend line is the line of more than two low points in the rising gold market and the line of more than two high points in the falling market. The former is called the upward trend line, and the latter is called the downward trend line.
The function of the upward trend line is to display the support level of the price rise. Once the price falls below this line during the volatility process, it means that the market may reverse, from rising to falling; the function of the downward trend line is to display the price The resistance to rebound during the decline. Once the price breaks up this line in the volatility, it means that the price may stop falling and rise.
Investors should pay attention to the following points when drawing trend lines:
1) The trend line is divided into a long-term trend line, a medium-term trend line and a short-term trend line according to the length of price fluctuations. The longer the time period, the higher the effectiveness of the trend line;
2) The higher the number of highs or lows connected by the trend line, the stronger the effectiveness;
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3) The short break of the trend line is not considered that the price of gold will change the trajectory of operation;
4) The trend line should not be too steep, otherwise it is easy to be broken through by the horizontal sorting and lose the significance of analysis.
From the perspective of tangent theory, the trend line is a part of it. It is a straight line formed by connecting the low and low points of the fluctuating price or the high and high points. If the price is operated in a way that a low is higher than a low, the trend line drawn is the upward trend line.
If the price is operated in a way that a high point is lower than a high point, the trend line drawn is a downward trend line. Another is that the lows and highs of prices extend horizontally, and there is no obvious upward and downward trend. This is known as sideways or box-shaped consolidation.
The trend line can be divided into a support line and a pressure line, connecting the low and low points of the price band to form a straight line, which is the support line; connecting the high and high points of the price band to form a straight line, 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 and mid-term trend lines should not be too close. If the distance is too close, the importance of the formed trend line will decrease.
So, how to make full use of trend lines in spot gold trading.
The trend line is the line of more than two low points in the rising gold market and the line of more than two high points in the falling market. The former is called the upward trend line, and the latter is called the downward trend line.
The function of the upward trend line is to display the support level of the price rise. Once the price falls below this line during the volatility process, it means that the market may reverse, from rising to falling; the function of the downward trend line is to display the price The resistance to rebound during the decline. Once the price breaks up this line in the volatility, it means that the price may stop falling and rise.
Investors should pay attention to the following points when drawing trend lines:
1) The trend line is divided into a long-term trend line, a medium-term trend line and a short-term trend line according to the length of price fluctuations. The longer the time period, the higher the effectiveness of the trend line;
2) The higher the number of highs or lows connected by the trend line, the stronger the effectiveness;
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3) The short break of the trend line is not considered that the price of gold will change the trajectory of operation;
4) The trend line should not be too steep, otherwise it is easy to be broken through by the horizontal sorting and lose the significance of analysis.
From the perspective of tangent theory, the trend line is a part of it. It is a straight line formed by connecting the low and low points of the fluctuating price or the high and high points. If the price is operated in a way that a low is higher than a low, the trend line drawn is the upward trend line.
If the price is operated in a way that a high point is lower than a high point, the trend line drawn is a downward trend line. Another is that the lows and highs of prices extend horizontally, and there is no obvious upward and downward trend. This is known as sideways or box-shaped consolidation.
The trend line can be divided into a support line and a pressure line, connecting the low and low points of the price band to form a straight line, which is the support line; connecting the high and high points of the price band to form a straight line, 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 and mid-term trend lines should not be too close. If the distance is too close, the importance of the formed trend line will decrease.
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