Category: Money tips Release Date: 2007-07-14
W at the end of the stock market is very important to the bottom of the form in which they appear are often long-term trend reversal from down to up sign. As a bottom of the form, which generally occurred at the end of price band decline, the trend does not appear in the middle of Quotes, therefore, use the form usually has judged that the conclusions of a high accuracy.
Moderator: Recently, the Shanghai and Shenzhen cities rise in stocks in 1200-point mark blocked, so that many investors are confused on its future trend. In fact, a closer look at the trend so far this year, in June, we can clearly see that the Shanghai Composite 1,000-point mark in the next test, after being out of shape at the end of a multi-W. This issue, we invited senior members of Mr. Zhang Hongji Securities describe how technology structure to analyzing market trend.
â–?Haidian District, Beijing shareholders Miss Ho: Single-pattern from a technical perspective, the Shanghai Composite Index bounced back to the center line to go from here?
Zhang Q: In general, W at the end of form, once formed, it should be a higher target level of at least from the lowest point to 1 times the distance from the neckline bit. That is, stock on August 8 bits neckline break 1130 points, at least should reach 1262 points (1130 + (1130-998)).
Of course, this is the analysis of the standard algorithm, in fact there will be some access to a high degree of rebound, which should be the policy aspect of the market, psychological, financial factors such as a comprehensive analysis of surface, I personally feel that afternoon Shanghai Composite is likely to to reach 1300 points or higher.
â–?Beijing Shijingshan District, shareholders Liu: How to determine the effectiveness of W at the end?
Zhang Q: In general, as long as the stock price upward break neckline bit on the basic that the patterns can be effective, if the stock price after the back to try to break through the neckline, higher again after being supported, then the effectiveness of the stronger, then the probability of rising up to 80% .
We have seen the Shanghai Composite rose to 1201 points, 1130 points, then back to first-line test is actually confirm the validity of the form.
â–?Beijing Shijingshan District, Ms. Han investors: how to choose the timing to buy, can not intervene in advance of the formation of W at the end?
Zhang note: This form has two buy points, one is the stock price when the neckline break, such as the Shanghai Composite August 9; the other is the stock break through the neckline after the withdraw sword to confirm when the above certificate in August 22 trend.
In general, before the formation of such a pattern, investors should not hastily intervene, but the broader market trend for nearly two months gave us that opportunity. They carefully observe the July 5 to July 25 Shanghai Composite trend can be seen, in fact during this time, the stock in the big W at the end of the right at the end of another to form a small part of the W at the end of. July 26 is the small W neckline was broken at the end of the day, when investors can short-term intervention, but its target level is not high, only 44 points to 1092 points, you should choose the right time to throw.
