When an investor who has just learned to draw a line observes the K-line chart, it is likely that the first thing he finds is that almost all the secondary and most of the intermediate trend lines are straight lines. At first, people may think that this is just a coincidence, but after a deeper understanding, you will find that this is not limited to small fluctuations. You just connect the original trend lines for several years or even longer on the K-line chart, which is as accurate as drawing them with a ruler! And the longer the time, the closer the trend line is to a straight line. If we straighten a cotton thread and put it on several stock price trend charts, we will be surprised to find that when the stock price is in an upward trend, the connecting line of its lowest point is almost a straight line. The lowest point of the stock price decline almost invariably falls on this line and rebounds, while the connection of its highest point is almost a straight line when the stock price is in a downward trend, and the highest point of the stock price rebound almost invariably touches this line and falls back.
In other words, the ups and downs of the futures market are composed of a series of ripples, the bottoms of which form a straight line inclined upward, while the downs of the futures market are also composed of a series of ripples, but the tops of which form a straight line inclined downward. These two lines-the rising line connecting the bottom of the continuous rising ripple and the falling line connecting the top of the continuous falling ripple-are the "basic trend lines of technical analysis of futures operation" mentioned this time.