Rules of application of bullish belt line:

  1. The bullish catching belt line, also known as the “pointer line” or “test line”, indicates a bullish market.
  2. The bullish catching belt line in the upward trend indicates that the market will continue to rise.
  3. The bullish catch-up belt line in the market is mostly test line, and the appearance of the bullish line will mean that the market will break upward and consolidate and rise.
  4. The bullish catching belt line in the downtrend can easily constitute a reversal K line for the day, but the reversal of the trend is subject to verification that the closing price of the next K line is higher than the highest price of the bullish catching belt line.
    Bearish belt line
    Rules of application:
  5. Bearish catching belt line, also known as “pointer line” or “test line”, indicates that the market is bearish.
  6. The bearish catching belt line in the upward trend indicates that the market will stagnate or reverse.
  7. The bearish catching belt line in the market is mostly test line, and the appearance of the bullish line means that the market has broken through the consolidation failure, the selling pressure is too heavy, and the trend is to continue the sideways trend.
  8. The bearish catching belt line in the downward trend shows that the bulls rebound weakly and the short selling pressure is strong, and the market will continue to fall.