How do you draw trendlines or Fibonacci lines when doing technical analysis? What level of cycle is generally used?

Hello sir, let me answer your question.

First of all, let’s talk about the drawing method of the trend line. The trend line is the line connecting the high point and the high point, or the connection line between the low point and the low point. The trend line is also called the connection of the inflection point, so before drawing the trend line, we should first understand what the inflection point is.

Recognition of inflection point: the high points of the two left and right k lines of a k line are lower than this k line or the low points of the two left and right k lines are higher than the low point of this k line, which can be regarded as is an inflection point. This sentence contains several key points: 1. The high point of the K line; 2. The low point of the K line; let’s take a look at the icon:

The red circles in the picture are all inflection points. Of course, there are many more in this picture, which I have not marked. But just connecting these inflection points to form a line, then we will draw a lot of trend lines. If there are too many trend lines, it will eventually lead to the inability to trade. Therefore, when we draw the trend line, we need to fit the current price, and the rest of the trend lines do not need to be drawn. Because the drawing has no effect other than affecting our transactions. So let's take a look at how the correct trend line of this picture should be drawn:

The blue lines in the figure are some trend lines with more reference value. Of course, in this picture, there are some trend lines, I did not draw them, these lines are for your reference only. Then, when drawing a trend line, in addition to fitting the current market price, it is also necessary to pay attention to the fact that it is best to take care of more points. It is to draw a line, and the more points covered, the better. In addition, try to avoid the situation where the shadow line is pierced. Here I just say try to avoid it, because the market cannot be so perfect, so sometimes piercing will happen Case.

Let's talk about how to draw Fibonacci lines. The Fibonacci points that I often use are 0.382, 0.618, 0.786, 0.886, 1.272, 1.414, and 1.618. So I won’t talk about how to use it today. If you want to know more, you can join my circle (actual trading thinking), which contains the application of 0.618. I will continue to update other applications later.

There are two ways of Fibonacci, the first is his callback, the points used are 0.382, 0.618, 0.786, 0.886, the second is its expansion, the points used are 1.272, 1.414 , 1.618. But in terms of expansion, I personally prefer to use reverse expansion, that is, it needs to be drawn backwards.

So let's first talk about the way of drawing Fibonacci forward, in one sentence: from left to right. Look at the picture below:

The above two pictures are drawn Fibonacci retracements, so they are drawn from left to right. If you want to test where it can pull back in a wave of falling market, you can start from the high point on the left and draw to the low point on the right; if you want to test where it can pull back in a wave of rising market, you can Start with the low point on the left and draw to the high point on the right. Here is a positive application of Fibonacci. Just now we talked about its expansion, because I usually prefer to use Fibonacci’s reverse expansion, so we need to reverse the reverse expansion. That is, we need to draw from right to left. And in the rising market, we draw from the high point to the low point, and in the falling market, we draw from the low point to the high point.

Regarding the expansion, I won't elaborate too much. You can draw it yourself to understand. In addition, Fibonacci should also pay attention to drawing from the starting point to the end point as much as possible. This section of the market is as complete as possible, and the effect will be more obvious.

That’s all for today, thank you for watching! Please move your little finger, click like, follow me! Welcome everyone to forward and comment!