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golden section line drawing method
Nowadays, stock software basically has the golden section. Select "Draw Line" in the individual stock menu, and then select "Golden Section" to automatically draw it.
The principle of drawing the golden section:
The main method of drawing the golden section is to find two points, namely the highest point and the lowest point. Once found, you can start to draw the golden section line.
Take the rising golden section as an example (just draw the falling golden section exactly opposite to the rising golden section). Now start drawing from the lowest point of the bottom to the highest point of the rebound. You will see six lines. The emergence of the golden section:
- The lowest solid line represents the support line at the bottom of the decline.
- The highest solid line represents the head bounce resistance line.
- The three dotted lines in the middle are support lines representing pullbacks (61.8%, 50.0%, and 38.2% respectively).
- If the market outlook continues to break through the previous rebound resistance line, you will see three other rebound resistance lines (61.8%, 50.0%, and 38.2% respectively).
The role of the golden section
It is mainly used to predict in advance the positions of rising and falling prices, as well as the prices of rebound resistance levels and falling support levels, and accurately help you find lower bottoms to buy (long) and higher tops to sell (short). ).
golden section buying and selling rules
- Generally speaking, it is safest to buy stocks within the 1.191 line, which is the consolidation period of the stock. You don’t even need to do it within this price.