Support and resistance levels are important concepts in technical analysis, and they reflect the relative strength of the market and the supply and demand relationship of the market. By calculating the support and pressure levels, investors can better grasp the trend of the market and formulate corresponding investment strategies.
1. Definition of support and pressure levels.
The support level refers to the price level that can prevent the continuation of the price at ***. The pressure level refers to the price level that can prevent the continuation of the price.
2. Calculation method of support level and pressure level.
1.Historically high and minimum law.
This is a historical-based method that calculates support and resistance levels from historical highs and lows. Specifically, the historical highest and lowest prices are connected in straight lines to form a high and low line. A certain price level on this line is the support or resistance level of **.
2.*Law.
* refers to the weighted average of the ** prices in a certain period of time, and these averages are connected into a line. Commonly used ** include 5th, 10th, 20th, 30th, 60th, etc. The support and pressure levels can be calculated. Specifically, when the stock price falls below a certain **, the ** becomes the support level of the stock price;When the stock price breaks through a certain **, the ** becomes a pressure level for the stock price.
3.Bollinger Bands method.
The Bollinger Bands are a dynamic analysis tool that consists of an upper, middle, and lower band. The Bollinger Bands can be used to calculate the support and pressure levels. Specifically, when the stock price falls to the lower band, the lower band is the support level;When the stock price rises to the upper band, the upper band is the pressure level.
4.Technical indicator method.
Technical indicators refer to indicators calculated based on the volume and data of **, such as MACD, RSI, KDJ, etc. The support and resistance levels can be calculated through technical indicators. Specifically, when a technical indicator falls to a certain low, that point is a support level;When a technical indicator rises to a certain high, that point is the pressure level.
3. Precautions for applying support and pressure levels.
1.Combined with the market environment analysis: When analyzing the support and pressure levels, it is necessary to analyze the market environment. For example, when the market as a whole is in a trend, the effect of pressure levels may be more pronounced;And when the market as a whole is in a ** trend, the role of support levels may be more obvious.
2.Flexible use of multiple methods: Different investors can choose the method that suits them according to their investment style and risk appetite to calculate the support and pressure levels. In practice, a variety of methods can also be flexibly applied according to the specific situation to improve the accuracy and reliability of the analysis.
3.Pay attention to the main force movement: When analyzing the support and pressure levels, you also need to pay attention to the movement of the main funds. If the main capital is sold in large quantities or at a certain price, then the price may have a certain impact on the volatility of ***. Therefore, when analyzing support and pressure levels, it is necessary to judge the movement of the main force.
4.Pay attention to risk control: When investing**, you need to pay attention to risk control. Even if the support and resistance levels are calculated through various methods, there is no guarantee that there will be fluctuations at these levels. Therefore, in actual operation, it is necessary to maintain a calm and objective attitude, reasonably allocate assets, control and set stop-loss and take-profit.
5.Continuous learning and practice: Investing** is a long-term process that requires continuous learning and practice. Investors can improve their ability and technical level of analysis by learning the relevant knowledge of technical analysis and continuously practicing operations, so as to better grasp and apply the calculation methods of support and pressure levels.
Technical Analysis