How do you draw trendlines or Fibonacci lines when doing technical analysis? What level of cycle is generally used?

Hello sir, let me answer your question.

First of all, let’s talk about the drawing method of the trend line. The trend line is the line connecting the high point and the high point, or the connection line between the low point and the low point. The trend line is also called the connection of the inflection point, so before drawing the trend line, we should first understand what the inflection point is.

Recognition of inflection point: the high points of the two left and right k lines of a k line are lower than this k line or the low points of the two left and right k lines are higher than the low point of this k line, which can be regarded as is an inflection point. This sentence contains several key points: 1. The high point of the K line; 2. The low point of the K line; let’s take a look at the icon:

The red circles in the picture are all inflection points. Of course, there are many more in this picture, which I have not marked. But just connecting these inflection points to form a line, then we will draw a lot of trend lines. If there are too many trend lines, it will eventually lead to the inability to trade. Therefore, when we draw the trend line, we need to fit the current price, and the rest of the trend lines do not need to be drawn. Because the drawing has no effect other than affecting our transactions. So let's take a look at how the correct trend line of this picture should be drawn:

The blue lines in the figure are some trend lines with more reference value. Of course, in this picture, there are some trend lines, I did not draw them, these lines are for your reference only. Then, when drawing a trend line, in addition to fitting the current market price, it is also necessary to pay attention to the fact that it is best to take care of more points. It is to draw a line, and the more points covered, the better. In addition, try to avoid the situation where the shadow line is pierced. Here I just say try to avoid it, because the market cannot be so perfect, so sometimes piercing will happen Case.

Let's talk about how to draw Fibonacci lines. The Fibonacci points that I often use are 0.382, 0.618, 0.786, 0.886, 1.272, 1.414, and 1.618. So I won’t talk about how to use it today. If you want to know more, you can join my circle (actual trading thinking), which contains the application of 0.618. I will continue to update other applications later.

There are two ways of Fibonacci, the first is his callback, the points used are 0.382, 0.618, 0.786, 0.886, the second is its expansion, the points used are 1.272, 1.414 , 1.618. But in terms of expansion, I personally prefer to use reverse expansion, that is, it needs to be drawn backwards.

So let's first talk about the way of drawing Fibonacci forward, in one sentence: from left to right. Look at the picture below:

The above two pictures are drawn Fibonacci retracements, so they are drawn from left to right. If you want to test where it can pull back in a wave of falling market, you can start from the high point on the left and draw to the low point on the right; if you want to test where it can pull back in a wave of rising market, you can Start with the low point on the left and draw to the high point on the right. Here is a positive application of Fibonacci. Just now we talked about its expansion, because I usually prefer to use Fibonacci’s reverse expansion, so we need to reverse the reverse expansion. That is, we need to draw from right to left. And in the rising market, we draw from the high point to the low point, and in the falling market, we draw from the low point to the high point.

Regarding the expansion, I won't elaborate too much. You can draw it yourself to understand. In addition, Fibonacci should also pay attention to drawing from the starting point to the end point as much as possible. This section of the market is as complete as possible, and the effect will be more obvious.

That’s all for today, thank you for watching! Please move your little finger, click like, follow me! Welcome everyone to forward and comment!

Fibonacci numbers, also known as Fibonacci numbers (Italian: Successione di Fibonacci), also known as the golden section sequence, Fibonacci sequence, Fibonacci number, Fibonacci sequence, refer to this A sequence: 1, 1, 2, 3, 5, 8, 13, 21, ... In mathematics, the Fibonacci sequence is defined recursively as follows: F0=0, F1=1, Fn=Fn -1+Fn-2 (n>=2, n∈N*), in words, the Fibonacci sequence starts from 0 and 1, and the coefficient of the subsequent Fibonacci sequence is the same as the previous two numbers add.

Lao Xu’s point of view: Fibonacci sequence can only be said to have reference value, but it cannot be absolutely relied on. If investment is so simple, wouldn’t it be rich everywhere? Let's talk, make sure you are full of confidence after the chat

For example, the bottom high point of 4H, to pull out Fibonacci, generally use 0.618 as the main point, if the shape of the bat is recommended to use 0.886 as the main point

Let’s talk about Fibonacci first.

Whether we often talk about callbacks or extensions in trading analysis, the principle is still Fibonacci numbers (columns).

In fact, the popular point is the sequence of numbers in mathematics, and you can see the formula of the sequence with just a Baidu search. Then it is very simple to look at it this way. Whether it is one hour, one minute, or one year, as long as it is a unified unit, it can be incorporated into the formula. Therefore, in principle, no matter which cycle can be used.

Back to the landlord's question, what cycle should be used? This varies from person to person. You can't blindly look for the answer, first understand the principles and usage methods, and then combine your own trading habits, summarize and review, and form your own usage methods.

Each cycle has independent existence. So any cycle effect is the same. But considering the price difference and fault tolerance rate, you can refer to the hourly level. Daily, weekly, monthly.

The specific method of use is to shift the chart between two adjacent peaks or troughs. This is the most common usage. Specifically, there are several types of use of breakthrough intervals.

As for the trend line, any level is fine in the same way. But pay attention to two points. The line connecting two adjacent important peaks and troughs and the closing price line must be connected.

Trendline minimum 4-hour level

Take the line connecting the high point or the low point, and generally pay attention to the point of the second and third waves as the entry point

Thirty minutes or hours, the trend is much more useful

Confirmation of the trend line drawing method: first, the existence of a trend must be confirmed, that is, two rising low points must be confirmed in an upward trend, and two sequentially falling high points must be confirmed in a downward trend, in order to confirm the trend exist. Secondly, after drawing a straight line, it should be verified by the third point to confirm that the line is valid. Finally, the more times the drawn straight line is touched, the more its effectiveness as a trend line can be confirmed, and the more accurate the forecast is, and the longer the straight line lasts, the more effective it is.

above the hour line

The lines are drawn with highs and lows, and are drawn from left to right because the chart runs from left to right.

An uptrend line is the line connecting lows to lows, and a downtrend line is the line connecting highs to highs. Fibonacci is drawn from left to right. If there is a high point on the left, it will be drawn from the high point to the low point, and if there is a low point on the left, it will be drawn from the low point to the high point.

As for how long the cycle is, it depends on your own trading time. It is recommended to use a cycle of more than 4 hours, and the trend will be more stable.

The trading opportunities in different periods are different. Big ones can restrain small ones, and small ones can evolve into big ones. It depends on whether your basic skills are solid

draw with tools

One-hour, 4-hour, and daily charts, the trend line is high point to high point, point to point,

The key is what cycle you do

Before drawing a line, check whether your own graph is a logarithmic scale graph. If not, the trend line with a higher level will have less reference value. In addition, learn the basic wave theory to better draw the trend line, and the golden section must cooperate with the wave to exert the greatest effect.

how to draw this