When the golden section line is divided, the curve is divided by the golden section principle. No matter whether the market is in an upward trend or a downward trend, you can choose the highest and lowest points of the market trend as the benchmark of cutting ratio, and divide the original ups and downs according to the ratio of 0. 19 1, 0.382, 0.809. These points are likely to have resistance points and support points.
The principle of the golden section comes from Fibonacci's law of numbers, in which the most classic numbers used in the golden section line are 0.382, 0.5, 0.6 18, which is easy to generate support and pressure.
Matters needing attention in the application of golden section:
1 and the three most important points in the golden section line are 0.382, 0.5 and 0.6 18. In the rebound, 0.382 may be a weak rebound position, 0.5 a medium rebound position and 0.6 18 a strong rebound position. In the callback, 0.382 is a strong callback position, 0.5 is a moderate rebound position, and 0.5 is a strong rebound position.
2. If the golden section is combined with other common technical analysis methods, the judgment result can be more accurate.
3. For different levels of rising or falling market, we should choose the high and low points of different levels of market as the golden year dividing line.
4. If two or more levels of golden section lines overlap, the support points or pressure points determined by golden section lines will be more obvious and accurate.