The trend line indicates that when the stock price moves in its fixed direction, it is highly likely to continue moving along this line.

When the upward trend line falls below, it is a shipping signal. Before falling below, the upward trend line is the support for every pullback. When the downward trend line breaks through, it is a signal of incoming goods. Before breaking through, the downward trend line is the resistance to each rebound. The longer a stock moves with a fixed trend, the more reliable the trend becomes. In a long-term upward trend, each change is higher than the corrected change in trading volume. When there is a very high trading volume, it may be a signal of the end of the mid-term change, followed by a reversal trend. At the end of short-term fluctuations in mid-term changes, most of them have extremely high trading volume, with peaks appearing more frequently than bottoms. However, very high trading volume often occurs at the bottom of panic declines. This is because at the peak, the stock market is boiling, retail investors blindly rush in large quantities, and large investors and traders take advantage of the situation to sell. At the bottom, the stock market undergoes a period of panic and falls, and ignorant retail investors' confidence is shaken. They sell at the price, and at this point, it has already reached the final stage of a long-term downward trend. Therefore, large investors and traders begin to buy in large quantities, causing high trading volume. Each uptrend line requires two distinct bottoms to determine, while each downtrend line requires two vertices. The steeper the angle formed by the trend line and the horizontal, the easier it is for a short horizontal consolidation to break through, so the flatter it is, the more technical it is. Investors should pay attention to the following points when drawing trend lines for the rise and fall of stock prices:

a. Trend lines are divided into long-term trend lines, medium-term trend lines, and short-term trend lines based on the duration of stock price fluctuations. Long term trend lines should select long-term fluctuation points as the basis for drawing lines, while medium-term trend lines are the connecting lines of medium-term fluctuation points. For short-term trend lines, it is recommended to use the fluctuation points of a 30 minute or 60 minute candlestick chart for connecting lines.

b. When drawing trend lines, try to first draw different experimental lines, and after a period of time when the stock price changes, retain trend lines that have been verified to reflect volatility trends and have analytical significance.

c. Correction of trend line. Taking the correction of the upward trend line as an example, when the stock price falls below the upward trend line and quickly returns above it, one of the original low points should be connected to the new low point to obtain the corrected new upward trend line, which can more accurately reflect the stock price trend.

d. The trend line should not be too steep, otherwise it is easy to be broken through by horizontal sorting and lose analytical significance.

When analyzing trend lines, one should be cautious of the "traps" created by market makers using trend lines. Generally speaking, before the stock price breaks through the trend line, the upward trend line is the support for each decline, while the downward trend line is the resistance for each rebound of the stock price. When the stock price breaks through the trend line, there is a price difference of more than 3% between the closing price and the trend line, and there is a matching trading volume. When the stock price breaks through the trend line, if there is a gap, a reversal trend is highly likely to occur, and the stock price trend has a certain degree of strength after the reversal occurs. When the stock price breaks through the resistance of the downward trend line and rises, it generally requires the cooperation of a large trading volume. However, when the stock price breaks through the upward trend line downwards, the trading volume generally does not increase, but sharply increases within a few days after the breakthrough. At the end, there is a phenomenon of accelerated rise and accelerated decline. Therefore, the vertices or bottoms of market reversal are mostly far away from the trend line.