Suddenly there was a point of change that did not make a new high. When this condition is met, if the stock price starts from the abnormal point of zero, follow its trend.
Continuing to adjust downwards, is it the exhaustion of the trend or a simple callback? Here we need to judge the third point here.
We can use the lowest price of three as the critical point of the trend and draw a line, which is the support line of Gu Bi. If the stock price is in the process of adjustment in the later period, as long as it does not fall below the lowest price of the three.
It's a rebound. If it breaks below, then this is the end of the trend. As long as it does not fall below, the stock price will have a short-term rapid rise in the later period. This is Gu Bi's reciprocal model.
As for the confirmation of the trend's correction and the trend's exhaustion, how do we look at it in detail? Let's take a look at the trend of a case. For example, after this stock has risen continuously in the previous period, we will find out the abnormal point of the first trend.