In the stock market, 90 per cent of the losses were due to miscalculation, copying on half the hill, and running from the top. There is always a feeling that the trend is inverted, based on guesswork, blindfolded, washed out by the main forces, or trapped in high places。
Today, we share a set of laws and regulations that are well recognized in the field of global technical analysis and that have been valid for decades. Without complex indicators, with no focus, with no light-talking, and with a simple three-step judgement, it is possible to grasp the top and bottom of the reverse trend with a real reversal of the trend and a well-founded point of sale. The full text, in the most popular terms, speaks the logic of combat, does not vote, does not heat software, is reliable and can be used directly in the face analysis。
First, let us be clear: what is the 123. Why does it set the bottom
Many old shareholders have heard of the dow theory, while the 123rd law, the easiest, best-placed version of the dow theory, is used to judge the downward spiral of the upward trend, the downward spiral of the downward spiral, and the simplest, most effective, and least likely to fail-defunct in the market。
Its core logic is very simple: trends need to be reversed by breaking critical lines, then stepping back to confirm, eventually by high innovation or new low failure, through three steps, and inverted。
Whether it is a large disk index or a stock movement, whether short, band or middle, the law of 123. It does not look at the news, it does not look at emotions, it looks at the most real trajectory of prices, so it is not deceived by the main forces, it is not confused by the trade, it is not disturbed by short-term fluctuations, which is the underlying reason why it can cross a bear and bear in the long term。
For the general diaspora, a lack of research into complex wave theory, entanglement theory, and jiangn theory, and the adoption of the 123 rule, would be sufficient to avoid the vast majority of pitfalls, to move precisely to the key nodes of the reversal of the trend, with at least six months of deviance。
Core dry goods: trend reverse 123 laws, not less than three steps
The law on trend 123 is divided into two categories: rising and falling (see top) and falling and rising (see bottom). The logic of judgement is perfectly symmetrical and ordinary people can spend a lifetime remembering it. I have made clear the criteria, the characteristics, the methods of judgement of each step。
Step 1: breaking critical trend lines
If the upward trend is to peak, it must first break the upward line; if the downward trend is to bottom, it must first break the downward line。
How do you draw the trend line? Very simple:
• rising trend lines: connecting two low points to stock price reversals and tilting straight lines upwards
• a downward trend line: connecting two high points of the stock price rebound with a straight line tilting downward。
Key points: effective breakthroughs must take place at close price, not through a wiring, typically exceeding 3 per cent, or outside the trend line for two days in a row, the first signal of reversal。
Step 2: retrospect test trend line (second confirmation)
After breaking the trend line, the stock price will not go all the way to the end
• rising and declining: when the upward trend line falls, the trend line will bounce back and fall back
• falling upwards: when the downward trend line is breached, the trend line will be back on and supported。
This step is the main one in washing dishes, seducing more or less, and it is also the most easy to deceive the diaspora. But as long as the 123 code is upheld, it will not be confused: it will not be able to bounce back, it will not break through, it will be the strongest confirmation。
Step 3: no higher/lower points (reverse established)
The last and most critical step is:
• rising and falling: after rebounding, stock prices could no longer rise to new highs, higher and lower, and reversed
• falling upwards: after stepping back, stock prices are no longer able to reach new lows, lows are rising and reverses are established。
All three steps have been completed, and the trend is 100 per cent in reverse, at which point it enters or departs, with a much higher success rate than the bottom of a blind guess。
Iii. Field: 123 laws judge the bottom and ordinary people do as they please
In order to get people to read it, i have prepared a very simple list of operations, so that the zero base can be applied one by one:
"the rising trend of judgment is at the top."
1. Visibility: stock prices have effectively broken the upward trend line and the first step has been established
2. Reaction: the stock price rebounds back to the trend line and cannot be re-located
3. New heights: high failure to innovate after rebounding, high down, at the top
Operation: after step iii has been confirmed, it will be decisively reduced or cleared to avoid falling。
"the downward trend is down."
1. To see breakthroughs: stock prices have effectively broken down the downward trend line and the first step has been established
2. The retrogression: the retrogression of stock prices to the trend line and to gain support without breaking
3. Look at the new low: no innovation after retrogression, no improvement in the low point, as confirmed
Operation: following confirmation of step 3, batches of low-inhalation and inverse behaviour。
Core judgement keyword
Effective breakout, trend line, stepback confirmation, high-point down, low-point lift, back-turning, escape signal, bottom copy
Four, 123, three of the most important details. One wrong is easily miscalculated
In the field, many dispersed households are not using code 123 in a bad way, not in the wrong way, but in the wrong way. These three details must be remembered:
1. Must be a “effective breakthrough”, not a false breakthrough
Shadow-line punctures of the trend line are not counted as single-day breakthroughs, but must be priced at a steady, sufficient scale, time-confirmed, and false breakthroughs are ignored directly, avoiding the temptation to be lured。
2. Step 2 retrogression/reaction is a process
There is no back-to-back breakthrough, and the rate is probably fissure; there is no back-to-back break and there is a high risk of backlash. The second step is the key to verifying the intent of the main force and cannot be bypassed。
3, 3 and 3 are final confirmation of high/low
As long as innovation is high, the upward trend will not end; as long as innovation is low, the downward trend will not end. The third step does not work, and there is no decisive reversal。
These three details, the soul of the 123rd law, can keep the details to a minimum。
V. Why the trends of disappearances? Because you're guessing, and law 123 is testifying
You can recall your own operation:
• when you see a drop, you think you've got the bottom of it
• seeing it rises for a few days, he thinks he's at the top and he's afraid to sell it
• changed views by a big light and a big shadow, pursued and killed。
This is the trend of guessing, and the chances of winning are entirely in luck。
The 123 code is a step-by-step test of trends: breakthroughs, confirmations, final reversals, all signals coming from the market, not from your brain。
Stock prices do not lie, trends do not lie, while law 123 translates the language of the market into a sales signal that the bulk can read. It does not seek to buy at the lowest, at the highest, but only when it is confirmed in reverse, and when it is established in reverse, it is safe, robust and highly successful and best suited to ordinary investors。
Whether it be cattle, bear, or shock, large dishes or shares, law 123 works steadily, which is why it has been in the realm of technical analysis for decades and has been used by countless trading bosses。
Vi. Field contrast: 4 common trends and 123 laws to see the truth at once
In order to provide a more intuitive understanding of the four most common trends in the market, i am quick to judge by the 123:
1. Hypothetical breakthrough: only breaking the trend line without retrogression and no change at the height, not inversion, to continue the trend
2. Seismic behaviour: repeated breaking of the trend line, high- and low-intensity disorder, with no law 123 in force and no operation
3. Strong reverses: three quick steps to complete, fit together, strong backsliding and bold participation
4. Vulnerability in reverse: three steps are slow, insufficient in quantity, weak in retrospect and cautious。
Without a complex analysis and a three-step comparison, it is possible to see immediately what stage the current situation is at, whether it should hold shares, whether it should wait and see。
Vii. Write to the diaspora: less trend in sentencing, more than enough to eat a 123 law
There are thousands of indicators and methods of warfare in the stock market, and many of the diasporas learn this today and try it tomorrow, and the more they learn it, the worse it gets。
In fact, the core of the profit-making business never learned much, but learned well。
The law on trends 123, which is simple, direct, efficient and has no time lag, does not require any supporting tools and can be used only by looking at k-lines and trend lines. This is the most friendly, safest and easyest way to judge trends for ordinary people who do not have the time to study and have no professional basis。
You can do it without envying others to escape and succeed. If you put the 123 in your head, each operation is tested in three steps, without impulsiveness, speculation or blindness, you will be able to take a steady turn of the trend and avoid a big fall and a big leap。
It's really not an exaggeration to take a six-month turn. Learning about the 123rd law, you'll suddenly find that the stock market is so clear, that the top and bottom are so easy to find, and that the stock market is free from fear。
Summary: trend reversal is not guessed, 123 steps dry kwan
Finally, the whole text is condensed into a few words at the core, and this section is enough for you to use in all walks of life:
One look at the break, two look back, three look up, three steps back。
Up, down, up, up, up, up, up, up, up, up, up
= see below。
The law of trend 123, which is the “one-size-fits-all key” at the bottom of an ordinary dispersed judgement, does not lie, does not lag behind, is not complicated, eats it enough to see the direction, steps on the rhythm in the stock market, and from then on, leaves blindly, on the right path to stabilize profits。
Opportunities for the stock market will always exist, and those who can seize them will always be those who possess simple and effective methods and who strictly enforce the rules。
