From mba think tank encyclopedia ()
Code 2bIt means that the upward trend in equities is likely to change if prices have passed through or are very close to the previous high (low) prices and have not been able to sustain a sharp rise, and later the trend reverses. The b in 2b means breakout. The first is to break the previous height, which is supposed to be a fake breakthrough, where there is no support, and the second is to fall。
2b law andLaw 123
The 2b law is by its very nature a special form of the 123 law, which is used to identify trends. (b) first, a trend line based on an increase is drawn and then: 1. The correct trend line is broken; 2. The upward trend is no longer high or the downward trend is no longer low; 3. In the upward trend, prices go down to the lower point of the previous short-term return; or in the downward trend, prices go up to the earlier high point of short-term rebound; if only two scenarios occur, the possible trend changes. If these three scenarios occur simultaneously, this would be equivalent to confirmation of trends in the dow theory
2b is above the 123rd rule, i. E. A way to deal with new breakthroughs. New heights break, but they don't last. That could be 2b. New height didn't break it. Naturally, it was made of two. That's a real breakthrough, a new trend。
2b is of practical use on the basis of the above. That's where the trend can change. And you'll be more integrated, and, of course, 2b is at the top of rule 123, which is a way to deal with new breakthroughs. New heights break, but they don't last. That could be 2b. New height didn't break it. Naturally, it was made of two. That's a real breakthrough, a new trend。
Application and rationale of 2b
Practical application of 1. 2b
In practical application, observe the situation after the break. It would be better to add the reverse signal of the japanese candle map or the bar map. If jianyang breaks through, it's a buy-in point. In the case of long shadows or shadows, this should take place in the event that trends are not sustained. As a result of the current pattern, the damage can be reduced. Long-film lines, for example, are stopped at points beyond the high and low points, if wrong, and can be reversed. Or use the trend line of the previous code 123 as a guide to judgement。
2b is a complete setTrading systemThe mere signal of sale is sufficient, and 2b would have been a very successful signal, which, when it came out, traded in a positive direction, set the point of loss around the lower point of the preceding period and set the margin of loss in accordance with different variety strategies。
Apart from that, 2b needs to be used alone, the signal comes out, you can consider whether you want to use it or not, and you can consider other successful signals that match it. The taboo cannot be judged by a mixture of other types of indicators, such as the use of macd to see the trend rise and then to use a 2b, and it is important to harmonize its own operating cycles and bases, and not to misuse them unless it is aware of 2b。
2. 2b the phenomenon and the multi-space game
The 2b phenomenon is caused by the fact that ordinary traders prefer to place their loss points around their front-end highs and lows. The time has come when these stop-losses are triggered by the fact that sometimes the stop-loss statements do not promote a further continuation of the situation, indicating that there is a very high resistance in this direction and a shift towards a situation of 2b; or when the situation does not break the previous high point and turn down, many of which is due to the proximity of the cut-off, or to the fact that they are held because they are relatively close, or because they do not wish to be set off, leading to a situation of 2b in which one party prevails over the other. More short-term, 2b is due to the phenomenon of on-site traders acting to trigger stoppages or a large number of orders。
A positive 2b versus a negative 2b in the 2b code
The low, high point in the front of the 2b rule is essentially a holding-up position, which is a region, not an absolute point. The intent of 2b is to attack an area of resistance, but because of its strong supply, it has not been able to effectively break through the area; or to test a supporting area, but because of the strong demand in the region and the strength of the buyer, it has not been able to break the area effectively and has shown itself on a “potential double-top or double-bottom” pattern. According to john mcgee's stock market trendsTechnical analysisIn his famous futures market technical analysis, john murphy stressed that it was important to wait for the completion of the double-top, double-bottom form (through the neck line) to see the trend reverse。
As shown in the right-hand figure, in the upward trend, a2 is the supporting area, and b2 has broken the area, but then recovered the area, suggesting that demand outweighs supply and that it is a good buy-in opportunity - a positive 2b. A1 is clearly a resistance area, and b1 breaks through this position, but then falls, and can it be empty? The answer is no, because john mcgill and john murphy are saying the opposite of 2b。
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