Summarize the practical drawing methods of neckline position
Help everyone flexibly grasp support and pressure
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1. Head and shoulders bottom pattern:
Take the line connecting the high point of the left shoulder and the high point of the right shoulder and extend it from left to right to form a line with a gentle trend. When the price rises, if it can effectively break through the neckline, it means that the bulls have the power, and the price will move upward along the inertia; conversely, when the price falls, if the shorts break through the neckline, it means that the bulls are defeated, and the price will enter the downward stage. , the neckline plays a vital role in the game between long and short parties.
2. Inverted V top neckline:
The first retracement low referenced by the top is usually the reference low of a falling band. The low point that fell for the first time from the high point cannot rebound higher than the previous high point again (even if it breaks through and comes back immediately), if it exceeds the previous high point, the neckline is cancelled. In terms of usage, when the market falls below the neckline, pull back and wait and see, then break through and then advance.
3. How to draw the bottom neckline:
Take the natural high point of the rebound as a reference, and the top neckline take the natural low point of the fall as a reference, or draw the neckline by extending the horizontal line from a single point, or draw the neckline by connecting two or more lines.
