Category: Money tips Release Date: 2006-09-22
Middle line in the technical analysis generally refers to 250-day moving average line, without considering the case of volume factors, the annual value of the line that is 250 days, the average transaction costs. Years, the role of the line is mainly used to determine the broad market and individual stocks big trend. If the index (or stock) in the year above the line, while maintaining upward year trend line shows that when broad market (or stocks) in a bull market phase, the current stock price has been higher than that 250 days Jiancang investors, the average cost, the vast part of the funds in a profitable, indicating Quotes to many years of line at this time can be used as a signal to buy or holdings; if the years to keep down trend line, and the stock (or stock) in the year below the line, indicating broad market (or individual stocks), Office of In the bear phase, most of the money market, quilt, then at this time meant that the majority of investors bearish market outlook, inside a small loss-win. Therefore, the annual market known as the line was again CBBC lines.
From this we can see that line for years, long-term investment more important guiding significance. Among every bull market to adjust lines to reach year stopped, every time a bear market rally into the year-line Service disruptions were common occurrences. For small investors, the years of guiding significance to the operation line is that if the lines have been up year, we should wait for an opportunity to intervene and insist on holding; if lines have been down years, you should avoid short positions, or appropriate rebound lighten up; while the year-line, if maintained go flat posture, can be combined with the prevailing market environment in the years near the line for short-term opportunities.
In fact, in addition to determine CBBC, the annual lines in different circumstances, there are many specific applications, for a larger increases have occurred early after the significant drop in stocks peaked, once the effective annual line below to prove that to adjust the pattern has been formed; right to run the year below the stocks for a rebound to a new year if the line near the drop is very likely meet resistance.
Some years, is running above the line of stocks the way, If there is short-term pullback, line at the year tend to be supported by a high probability of subsequent rebound.
China's economy has entered a new growth cycle, although in the context of this introduced a series of macro-control policies, but the stock market bears this appear likely to switch to a very small cow, we now have reason to believe that tape will not be easily fell below in one fell swoop, even if the year was below the line of short-term there may be a Youkong behavior. Because the effectiveness of years of below the line was mainly to see if three consecutive trading days below the close of the year, or whether more than 3 percent limit. Can be seen, despite the recent trend in the Shanghai index has not shaken off the constraints of a downward spiral, but this time investors to sell into the year near the line have not yet sufficient basis.
Guidance in the application of years of line operation, investors should be noted that the annual target line as long-term investments are the advantages of high accuracy, but also the shortcomings of slow response, it should also be combined with other indicators of a higher sensitivity at the same time to study them.
