In the stock market, we use the golden section ratio to judge its ordinate, so as to determine the more accurate position of the support line and the pressure line, and thus choose the appropriate entry point and exit point under the premise of mastering the abscissa time axis to realize the perfect combination of time and space.
Before learning the painting of the golden section, there are two things that must be mastered:
Remember several golden ratio figures, such as 0. 19 1, 0.382, 0.5, 0.6 18, 0.809, 1. 19 1,/kloc. Among them, 0.382, 0.6 18, 1.382, 1.6 18 are the most important, and the stock price is likely to generate support or pressure at the golden section line generated by these four numbers.
Second, find a point. This point is the highest point when the rising market ends and turns down, or the lowest point when the falling market ends and turns up. Of course, the highs and lows mentioned here are all within a certain range and are all local. As long as it can be confirmed that a trend (whether rising or falling) has ended or temporarily ended, the turning point of this trend can be used as the starting point of the golden section. Once this point is selected, the golden section line can be drawn.
There are two ways to draw the golden section:
Drawing method of the rising golden section: If the stock price is in the bottoming stage, click this low point with the left mouse button as the base point, hold down the left mouse button, drag the mouse to align the sideline with the corresponding high point, that is, trace back to the vertex of this falling band, and release the left mouse button system to generate the golden section line that bounces upward to the upper pressure level. There will be 0.382, 0.5, 0.6 18 as the pressure line in the middle, and investors can look for opportunities to lighten their positions in these important positions.
Drawing method of golden section: If the stock price is at the peak and falling stage, click this high point with the left mouse button as the base point, hold down the left mouse button, drag the mouse to align the sideline with the corresponding low point, that is, trace back to the bottom of this rising zone, and release the left mouse button to generate the golden section. In the downward trend, when the stock price falls and meets the golden section line, it can be regarded as a resistance line, from which some buying opportunities in the band can be found.
(1) rising golden section diagram:
Model description: 1. After a wave of continuous decline, the stock price showed a low adjustment point and began to bottom out.
2. Select the high and low points of the stock price band, and pull up from the low point to the high point where the adjustment starts.
3. The golden section will show that the stock price will rebound to 0.236, 0.382, 0.6 18 in the future. 4. The straight line where the demarcation point is located is the staged resistance line of the stock price rebound.
(2) Descriptive illustration of the decline of golden section:
Model description:
1. Before analyzing the golden section, the stock price has experienced a wave of rise.
2. Connect the peaks and valleys of the previous wave from the high point to the low point.
3. The golden section will show several important golden section positions, such as 0.236, 0.382, 0.5, 0.6 18, 0.809 from high to low.
4. The stock price fell from a high level, rarely vertically, and mostly fell in bands. You can choose to operate the band at the support levels of 0.382 and 0.5 to obtain short-term profits, or you can regard the rebound as an escape peak.
The role of the golden section:
1, support and resistance
If the price is above the golden section, the golden section provides support; Instead, it provides resistance.
Step 2 judge the trend
The golden section line 6 1.8% is very important, and the market below 6 1.8% turns into a short trend; Breaking through the 6 1.8% line, the market reversed to a bullish trend.
3. Measure the strength of callback or rebound.
38.2% line is shallow callback and 6 1.8% is deep callback.