How To Grasp The Inflection Point Of Stock Price Trend

How do we judge a trend that has been formed, and under what circumstances will it become a stage?

To answer this question, we need to mention two very simple but very famous laws -- the law of bear market.

First of all, these two laws judge the strong market by the low point, and judge the weak market by the high point. This is contrary to the way of thinking that many people are accustomed to. Most people judge where the head is in the strong market, and analyze where the bottom is in the weak market.

But the right thing to do is not to analyze which point is the highest point in the rising trend, nor to analyze which point is the lowest point in the downward trend, but to analyze whether the rise or fall trend will end.

If it is a little more direct, the value of the theory lies in: for a more obvious trend of rise or fall, it is necessary to judge whether the stock index is out of the weak market or not. It depends on whether the high point of the rebound has exceeded the high point of the last wave of rebound. To judge whether the stock index has ended the strong market, it depends on whether the low point of the callback has broken the low point of the last callback.

The most obvious difference between this habit and the habit of thinking is that when the stock price is going up, the most important thing is not to analyze where the pressure is, but to see whether the supporting position can be well maintained; and when the share price is in a downward trend, the most important thing is not to analyze where the support is, but whether the pressure position is always effective.

This is the same for the medium and long term market or short term market, but the band of the analysis is different.