Track line is derived from trend line, also known as channel line. After we get the upward trend line, we can draw the parallel line of this trend line through the first peak, that is, the upward track line. As shown in Figure 6-4, once the upward track is formed, the stock price will run in the track and will not easily break through the upper and lower tracks of the track. Breakthrough of the upper track means that the stock price has been out of the previous track, and the rise of the stock price will accelerate, that is, the original trend line will be replaced by a steeper trend line.According to this characteristic, we can use the track line to select stocks: select stocks that break through the rising track. Breakthroughs here can adopt the usual breakthroughs principles: time (more than 3 days), volume at breakthroughs, percentage of breakthroughs (more than 5%) and so on.
1. The time to buy is when the stock price goes up and breaks through the downward track.
The downward trend line is a straight line connecting the two peaks of the downward trend, as shown in Figure 6-5. When the downward trend line is determined, the valley between the two peaks of the downward trend line is selected and a straight line parallel to the downward trend line is made. The range between the parallel line and the downward trend line is called the downward channel. The downward trend line is called the upper track of the downward channel, and the line parallel to the downward trend line is called the downward track of the downward channel.
Generally speaking, when the stock price falls, it will support and rebound when it falls to the downward track, and it will be blocked when it rebounds to the downward track. When the ultimate stock price volume breaks through the downward channel, it will announce the end of the downward trend and the beginning of the upward trend, and become an important buying opportunity.
The following points should be paid attention to when using this method to operate:
(1) The downward channel is actually the continuation and supplement of the downward trend line analysis, but it is more reliable and practical than the downward trend line in practical operation.
(2) Volume is an important index to measure the effectiveness of breakthroughs. When the stock price breaks through the downward channel upwards, the volume should be enlarged. Otherwise, the reliability of the breakthrough will be reduced or it will be difficult for the stock price to rise and run horizontally after it goes out of the downward channel.
(3) Short-term operators should also consider the time to buy when the stock price falls in the downward channel and meets the downward trajectory to gain support.
(4) Distinguishing between large and small channels. The trend of the big downward channel is much stronger after it is broken than that of the small downward channel.
(5) After the downward channel effectively breaks through upward, the measure increase is at least the vertical height of the downward channel or its multiple.

2. The time to buy is to break through the upward trajectory of stock price.
In the upward trend, sometimes the early rise of stock price moves rhythmically along a certain upward channel, that is to say, the downward track of the upward channel forms obvious support, and the upward track stock price of the upward channel is blocked and falls. However, at the end of the upward trend, the bankers raised sharply, the stock price volume broke through the upward pressure of the upward path, and accelerated the rise. The increase in a short time is often considerable, and a good grasp of the short-term profits can be made. Therefore, in the upward trend, when the stock price volume breaks through the upward track, it is a short-term buying opportunity.
The following points should be paid attention to when using this method to operate:
(1) When the stock price breaks through the upward trajectory of the rising channel, pay attention to the change of trading volume. If the stock price breaks through the upward trajectory and the volume cooperates with the enlargement, it can be regarded as an effective breakthrough. We should buy boldly, and there will be a large increase in the future market. Otherwise, the possibility of false breakthroughs is high or it is difficult to measure the increase.
(2) The breakthrough of the upward trajectory of stock prices is a signal of the accelerated rise of stock prices and the end of the upward trend, which generally does not last too long, and sooner or later will fall back into the channel or even lower.
(3) When the stock price breaks through the upper trajectory of the rising channel, it should stop losing and exit if it falls back into the upper trajectory soon. Although there are occasional withdrawals after the breakthrough, it should not close below the upper trajectory.
(4) When the stock price breaks through the upward channel and goes on the track, the measure of the upward increase is the vertical height or several times of the upward channel.
(5) In the rising channel, every time the stock price falls back on the lower track to get support, it is also a short-term buying opportunity.
Stock selection
Contrary to the trend line, the stock price breaking through the track line is not a reversal of the trend, but an acceleration of the trend, that is, the slope of the original trend line will increase and become steeper. Channel lines can also alert trends. If a stock price fluctuation has not touched the channel line, it will turn around very far away, which often indicates that the trend will change, because the market has not enough strength to maintain the original upward or downward track.

Leave a Reply

Your email address will not be published. Required fields are marked *

Name *
Email *
Website