Because panic buying pushes prices down sharply, this indicator can usually reach a higher value at the bottom of the market. This indicator is very typical for a long period of time, usually at the top of the market or during price consolidation. According to the same principle, the technical index of the average amplitude channel can be interpreted as other variable indexes. The principle of forecasting according to this index can be expressed as follows: the higher the index value, the higher the possibility of trend change; The lower the index value, the weaker the liquidity of the trend.

& lt Simply put, the higher the share price, the greater the risk of deviating from the support level >

Calculation method

The three amplitude channels listed below have the largest values:

The difference between the current maximum and minimum (maximum and minimum);

The difference between the last closing price and the current maximum value;

The difference between the last closing price and the current lowest price.

The index of average amplitude channel is the value of moving average line of amplitude channel.