How to calculate support and pressure levels?
Support and resistance levels are two important concepts in technical analysis, and they are of great significance for investors to judge the trend of ** and formulate trading strategies. Below we will go deeper into how to calculate support and resistance levels, and introduce some related technical indicators and judgment methods.
1. Definition of support and pressure levels.
The support level refers to the fact that the stock price stops near a certain price due to the increase in buying power in the process of **. This level is the support level. When the stock price falls near the support level, investors can consider that there is a certain opportunity for the stock price, so it can be considered.
The pressure level refers to the fact that the stock price stops under pressure near a certain price due to the increase in selling power in the process of **. This price is the pressure level. When the stock price rises near the pressure level, investors can think that the ** may encounter some selling pressure, so they can consider selling.
Second, the method of calculating the support level and pressure level.
1. Segmentation method.
*The split method is a commonly used method for calculating support and pressure levels. Its basic principle is to divide the highs and lows of a wave of **, and the resulting value is the support or resistance level. The specific calculation formula is as follows:
Support level = low + (high - low) 0682
Pressure level = high - (high - low) 0682
of which, 0682 is the ** split point. The support and pressure levels calculated using this method have some reference value, but it should be noted that this method is not absolutely accurate, so it needs to be combined with other technical indicators for comprehensive analysis.
2. Trend line method.
The trend line method is a method of drawing trend lines to determine support and resistance levels. In an uptrend, connecting two or more lows can form an uptrend line, and the extension of this line is the support levelIn a downtrend, connecting two or more highs can form a downtrend line, and the extension of this line is the resistance level. When using the trend line method, you need to pay attention to the validity of the trend line and the breakout.
3. ** Law.
The * method is a method of judging the support level and the pressure level by using the moving level. Moving Flat** is a technical indicator that reflects the long-term trend of the stock price, which can eliminate the impact of short-term fluctuations on the stock price. When the stock price is running on top of the moving level, the moving level** acts as a support for the stock price;When the stock price is running below the moving level**, the moving level** puts pressure on the stock price.
Commonly used mobile platforms include 5 days, 10 days, 20 days, 30 days, 60 days, etc. When using the ** method, you need to pay attention to the selection and intersection of **.
3. Technical indicators and judgment methods.
In addition to the above calculation methods, there are some technical indicators and judgment methods that can help investors more accurately determine support and resistance levels. For example:
1. Volume indicator: The change in trading volume can reflect the trend of the main funds in the market. When there is a large volume near the support level, it may mean that the main funds are fleeing;When there is a large volume near the pressure level**, it may mean that the main capital is entering the market. Therefore, the reliability of support and resistance levels can be judged in conjunction with volume indicators.
2. MACD indicator: MACD is a trend indicator, which can reflect the long-term trend and short-term fluctuations of stock prices. When the MACD is above the zero line, it may mean that the trend is establishedWhen the MACD is dead crossed below the zero line, it may mean that a trend is established. Therefore, the MACD indicator can be combined to determine the breakout of support and resistance levels.
3. RSI indicator: RSI is an overbought and oversold indicator, which can reflect the short-term fluctuations of stock prices. When the RSI exceeds 70, it may mean that the stock price is overbought;When the RSI is below 30, it may mean that the stock price is oversold. Therefore, the RSI indicator can be combined to determine the best chance and risk situation of support and resistance levels.
In short, judging the support and pressure levels of ** requires comprehensive consideration of a variety of technical indicators and judgment methods. Investors can combine their own trading experience and risk appetite to choose their own methods and technical indicators for analysis and judgment.
At the same time, it should be noted that technical analysis is not a panacea, it can only provide a reference and auxiliary means, and the final decision needs to be comprehensively considered in combination with factors such as fundamentals and market environment.