#价格趋势分析

Judging the direction of market movement does not require any indicators; it only requires observing whether prices continuously break through in the same direction. For example, when the price breaks through the previous high and then retraces, it is expected to form a higher low (HL) and break upwards again. The same principle applies to downtrends.

Breakthrough - Retracement - Re-breakthrough constitutes the basic structure of the market.

According to Dow Theory, the market is simplified into the following three theoretical models.

HH = Higher High, HL = Higher Low, LH = Lower High, LL = Lower Low

Uptrend: Price breaks through the previous high, forming HH, retraces without breaking the previous low, and continues to break upwards forming HL.

Downtrend: Price breaks through the previous low, retraces without breaking the previous high, and continues to break downwards forming LH.

Range: Price has no clear direction.

The above is how one can clearly judge the market trend without relying on any indicators through the structure of the market.