Support level and pressure level are mutually transformed. When the stock price falls below the support level, the original support level will become a pressure level, which will have a certain suppression effect on the stock.
Supplementary information:
First, what are the pressure level and support level?
1, pressure level: when the stock price rises to a certain price, the stock will stop rising or even fall back. The price that has such a function is the pressure level-to prevent or temporarily prevent the stock price from continuing to rise.
2. Support level: If the stock price falls near a certain price, the stock price decline will stop and may rise again. A price that supports the stock price balance-preventing the stock price from falling further or delaying the stock price from falling further-is the support level.
The concept is not difficult to understand. The pressure level is a position. This position is to keep you from rising as much as possible, and it is the support level that can keep you from falling as much as possible when falling. But what method is used to effectively judge the pressure level and support level? I think these should be the most important things for everyone.
Second, what do you think of the pressure level and support level?
1, average formation
For everyone, the moving average is no stranger. After opening the quotation software, except for the K-line, the number of lines you see the most is the moving average intertwined with the K-line. Don't think that these moving averages are unimportant and can play a great role for investors. For example, the daily moving average of 10 represents the average buying price of investors in recent 10 trading days. In fact, when the stock price rises and falls to the 10 moving average, it is easy for the stock price to form a support, because the transaction cost of investors in the recent 10 trading day is near here. In order to prevent the stock price from penetrating their own costs, most investors will make a difference.
On the other hand, if it falls and then rises back to the vicinity of the 10 moving average, it is easy to form pressure, because investors with costs in this position are eager to return to their original positions to lighten their positions. Therefore, we will find that the longer the moving average period, the stronger the role of support and pressure, because some long-term shareholders either insist on holding shares, and there are few short positions left after the nearby decline; Otherwise, it will be locked up for a long time, and it will be dealt with quickly after rising to the cost price.
2. The formation of early highs and lows
When the K-line price rises to the previous high point or falls to the previous low point, it is easy to cause pressure and support. Why is this happening? Due to the previous high point, it usually comes from a large number of investors to buy, forming a stage high point. In other words, there are many locked chips in this position. Assuming that the stock price rises to this neighborhood, a large number of investors want to flee and return to their original capital, forming selling pressure. On the other hand, it is easier to understand if the previous lows are generally strong support. Think about it, what kind of investors dare to intervene at the low point of panic? It must be a firm and optimistic investor, so there must be strong support for the price to fall near the low point.
3. Pressure and support caused by the trend line formed by multiple high points or low points.
How to understand? In fact, many K-lines have been blocked many times when they are gradually rising, or supported many times when they continue to fall. Connecting these blocked and supported points will become pressure and support in the future. Because when investors are under pressure for many times in the same position, when the stock price returns to this position range, investors don't want to take risks, and it is easy to form pressure or even fall; On the contrary, investors will be ready to enter the market when they have just fallen to the position of multiple support, so it is easy to form support or even rise. Give you a picture: