The Baota Line indicator, also known as the TOWER (TWR) indicator, is a medium - to long-term technical analysis tool that focuses on stock price analysis. Apply the principle of trend lines and introduce the concepts of support zone and pressure zone. It mainly represents the process of competition between long and short stock prices and the numerical changes in power in charts, in order to predict the future trend of stock prices and choose appropriate buying and selling opportunities.

1、 The principle of the Baota Line indicator

The Baota Line mainly applies the principle of trend lines and introduces the concepts of support zones and pressure zones to confirm whether the market has reversed. Different from other indicators, we do not make subjective speculations about the possible direction of changes in the market development, but rather acknowledge them objectively. The Baota Line indicator believes that if the upward trend of a stock price has been confirmed, one should buy the stock and hold it. Instead of actively predicting where the high point of the stock price will be, one should be cautious when there are signs of a reversal in the stock price from a high point. Once it is confirmed that the top of the stock price has appeared and a selling signal appears, the corresponding selling action should be taken. On the contrary, if a downward trend in stock price is formed, one should sell the stock, stay out and wait, not easily predict where the bottom is, and only start buying when the stock price reverses from a low level and a buying signal appears.

From the above, it can be seen that the Baota Line indicator adheres to the investment philosophy of "rising without saying the top" and "falling without saying the bottom". It tells investors not to deliberately predict the position of the high or low point of the stock price, but to wait for possible high or low points to appear before taking corresponding selling or buying decisions. Generally speaking, following the method revealed by the Baota Line indicator to buy and sell stocks, although there is a possibility of losing some profits by selling stocks at the high point or buying stocks at the low point, this method is less likely to miss the occurrence of rising prices or avoid the existence of falling prices, and is also less likely to be shaken out of the market during consolidation on the rise. Therefore, the Baota Line indicator is more suitable for investors who operate prudently.

Pagoda Line Indicator (TWR)

2、 Explanation of Baota Line Indicators

The Baota Line is a type of line that divides the rise and fall of stock prices and analyzes their trends based on white and black (virtual, physical) solid bars. It also represents the process of fighting between long and short positions and the changes in strength in the chart, and displays appropriate buying and selling opportunities.

Its characteristics are similar to point charts, which do not record the daily or weekly stock price changes, but rather record and plot when the stock price continues to hit new highs (or new lows), or reverses upward or downward.

3、 Principles for the Application of Baota Line Indicators

After the Baota line turns white (red), the stock price will always extend an upward trend in the future.

After the Baota Line turns black, the stock price will always extend a downward trend in the future.

The small flipping of the Baota Line during the game can be determined by the size of the set loss or profit point, depending on whether to enter or exit.

When the market is in a high position or the Baota line is long and black, it is necessary to take profits and sell the shares in hand immediately; On the contrary, flipping it up is the timing for intervention.

If the analysis of the Baota line can be combined with K-lines, moving averages, etc., the effect will be even better.