Category: Money Tips Date: 2006-11-29
The recent stock market continued to rise, many investors are most concerned about the question is: When the stock market peaked? When to sell stocks, be secured? In fact, the answer is very simple, stocks must adapt to market trends, only the trend's lead, as long as the broader market on a firm upward trend in ownership, when the trend changed when selling stock, cash profit of
. While speaking is very easy, but many investors, especially for new investors to the relative lack of experience in analyzing trends.
Trend is one of the four core technical analysis, market movements can be divided into a trend and no trend in two ways. Once the market is the formation of a clear trend, and the prices are often along the direction of the existing trend continues to evolve, while the U-turn back to run the probability is relatively small. Thus, in the reverse sign of the trend does not appear before the investors should flow, so as to make their own behavior and the market operation of a harmonious resonance, in order to make their own investment, such as easily yielded to the general.
Judged that the operation of the direction and reverse the trend, mainly in three ways:
Analyzing trends in the use of leading indicators
Leading indicators are: the leading stocks, heavyweight and leading shares.
Leading stocks tend to have the main fund operation, while large funds tend to have relatively high market judged forward-looking, the inclination of its operation with relatively strong market for guidance.
Index heavyweight's role is to market influence, the current heavyweight groups of the growing influence of the future, the trend in the heavyweight certain period of time, will greatly influence the direction of the broad market, but also will affect the evolution of the trend.
The leading stock is the first to start or lead stock decline. Investors are often judged on the market There is some differences, but some institutional funds and investors are the type of foresight, its operation has a high degree of forward-looking orientation to follow the operation of these funds will be easier to grasp the trend direction.
Analyzing trends in the use of averages
Comply with the direction of moving averages can often take a certain extent, the direction of the trend.
MA will appear two kinds of situation in which the average arrangement of long and short arrangement. Whether up or down when the bull when the arrangement of short order, investors are able to conform with the trend to operate are all boats sailing downstream, this time the direction of price movement in the same direction and moving averages.
For predicting trends in the use of moving average and the trend to play a guiding role, the key is to focus on the direction of long-term moving averages. Which presents the long-term moving average short order, and continued to decline, investors should be less or non-action operation, reducing the number of holdings, and in order to sell the main. Show long ranked among the long-term moving average, and continued to increase, investors should increase the number of holdings, and in order to buy the main.
Analyzing trends in the use of trend line
If the price is based on a low to run than a low-high run, the trend line is drawn upward trend line; such as the price is based on a high point lower than the operation of a high-run, the trend drawn line is a downward trend line.
Investors in the analysis of trends in the process should be in accordance with the principles from long to short. Analyze long-term trend, and then medium-term trend analysis, after analysis of short-term trends. Medium-term trend which is essential, investors easier to grasp, and actual combat are also the strongest. Therefore, the learning trend analysis can begin to start from the medium-term trend.
According to the principle of the trend line, you can also run parallel channels evolved stock. When the stock price by a certain trend in a long-running parallel to the channel and ultimately speed up the break through the channel, the turning point will follow the trend of phase formation.
The trend line can help investors to the flow, looking for price movement trend in the increase in the buy and hold; in decline while holding cash at hand when you do not buy shares.
To sum up, and the prices run trend is very important, and only achieve "boats sailing downstream," avoid "or drop" in order to achieve long-term and stable returns.
Edited in the gold-line
