#趋势线的强弱 The core depends on
(1) Number of price touches
(2) Duration, both directly determine its support/resistance effectiveness in the market.
😄 Specific influencing factors can be divided into the following 4 points:
1️⃣ Number of touches (most critical): The more times the price touches back or rebounds and confirms the trend line, the stronger the trend line. Usually, effective touches of 3 times or more are more referential than trend lines with 1-2 touches. 【See the figure below】 you can see 🤗
2️⃣ Duration: The longer the trend line is maintained, the more complete the covered price cycle (e.g., daily level > 1-hour level), the more stable the reflected market trend, and the higher the intensity.
3️⃣ Slope angle: A trend line with too steep a slope (e.g., > 60°) is easily broken through quickly, indicating weaker strength; a trend line with a gentle slope (e.g., 20°-45°) has more stable price fluctuations, gradually rising, and can be more sustainable. Such trend lines have more reference value and significance!
4️⃣ Confirmation of pullback after breakthrough: If the trend line is broken and the price can re-touch that line and confirm the support/resistance conversion (e.g., the ascending trend line becomes a resistance level after being broken), it will further strengthen the validity of this position; conversely, a breakthrough without pullback confirmation will quickly weaken the strength of the original trend line.
5️⃣ The final key point is that one cannot rely solely on it; it must be combined with price behavior and market structure.