Three Constants of MACD Bottom Relaxation and Ava Forex

First, there are no more than three things. In a falling market, when there are two consecutive back relaxations after the bottom relaxation low, it is basically confirmed that the downward trend is approaching the end. However, at this time, the bear force may still stubbornly resist, resulting in a downward false breakthrough in the stock price, and the indicator will weaken temporarily. It may even break through the bottom of the first two back relaxations. From the surface, no new back relaxations have been formed, but compared with the original back relaxation origin, it still constitutes the third back relaxation. In practice, the reverse layout can be considered. The reversal market after three back relaxations is usually larger and safer, and the subsequent rise requires continuous trading volume cooperation. For example, some stocks have recently experienced obvious three back relaxations on the 60-minute chart, thus supporting the subsequent rebound. Second, the principle of symmetry. Symmetry exists widely in the stock market, and MACD back relaxation is no exception. Generally speaking, the peak of the market after multiple bottom-back relaxation usually ends in the form of top-back relaxation of stock price or trading volume. Bottom-back relaxation means excessive accumulation of energy, and the suppressed energy during the rebound can easily lead to retaliatory quotes, and strong inertia can easily lead to the appearance of top-back relaxationAva ForexThis rule is also applicable in other trading varieties. 3. Pattern analysis. MACD is a trend indicator, and traditional pattern analysis is mostly based on trend theory, and the principles of the two are similar. Therefore, MACD bottom relaxation can be analyzed with the help of head and shoulder bottom, double bottom, three bottom, arc bottom, platform bottom and other morphological theories. The commonly used evaluation methods such as measurement amplitude, resistance or support level are also applicable, and the top back relaxation is used vice versa.