Patterns to determine the time by buying Money Tips

Category: Money tips Release Date: 2007-04-18

Patterns, by the stock price within a certain period of time (usually on the mean daily) fluctuations in the formation of K-Line made plans to connect the price of graphics, it is a factual account of the price of the stock to run track and reflect the operation of trends in morphological analysis of the stock market technical analysis system, one of the methods of critical analysis.

'Give me a chart that tells you the trend of change' in this morphological analysis of the famous, it is seen that the essence of morphological analysis, it is because any form of a stock have revealed their transaction-intensive areas where support and resistance where there is little up or down in space, while the makers of all acts, such as Xi Huo Jian-cang, vibration Xi Pan, Fast pulled up with the high distribution of all hidden in the form of being, and even estimates based on morphological analysis makers Jiancang costs, Chi Chou ratio Kong Pan capacity, profitability and so on. The question is how we go through the superficial understanding of this form of graphical patterns behind the dealer or the nature of the market, that is, morphological patterns formed during or soon after breaking out the form to determine the meaning and types, and take the appropriate investment strategy . In addition, the following will introduce the other to buy time to determine methods such as trend lines, moving averages, volume, technical indicators, often require a combination of patterns or K-line graph, it also showed how important morphological analysis. Here we are introduced under the form of an important method to determine the timing to buy.

1, the second bottom is not broken to the best buying opportunity

Here we are talking about the second bottom of the double bottom is not in the traditional sense, not entirely the same as V-shaped reversal, but rather from the high stock prices once again fell to near the previous lows to obtain support, and then directly into increased trends, and the end point of this is at least a few weeks before the low, typically a few months ago or even more than a year before the low. At this time shares are down after a longer period of time, the stock has fallen a market trading was light, the risk has been small, is a rare opportunity to buy the best medium to long term, once the well stimulation or beneficial to the main entry, stock prices would be significantly up, most of them will re-up Back to the ups and downs points even higher.

Analysis and operating essentials

(1) The second point of bottom of bid above the previous low of about 3%, within the range or in the vicinity of the previous low of two consecutive days or more before the close but none hit a new low, or even fall to below the the previous low but soon rose again to above the previous low.

(2) The shares dropped the course, the main support is the previous transaction-intensive areas and the vicinity of previously formed low, especially in the latter's support for the most effective, before pulling up the process even halfway up Yangxian or shocks is very little are supported.

(3) The second bottom in the second low-low range for the first time for six months or even longer if more than one year, more effective and reliable, and low to stay is very short, often a few trading days and even intraday short period of time, while the subsequent rise was rapid and sustained. Therefore, in actual analysis and operation, not only look at Japanese K-line diagram, but also should look at the weekly K-line map, so you can see farther, more previous low, looking for more opportunities to market to improve the success of buying probability.

(4) shares fell to near the previous low of the number of times to obtain more support, the more reliable and effective. Therefore, the three bottom is not broken, do not break even on many occasions bottom is the best time to buy.

(5) shares fell to near the previous low bid, the stock is not up anti-down, and effective fall to below the previous low of no signs of rising, in order to avoid risk, should temporarily stop departure. After the stop, if stock prices rose again to the previous low point on should have the courage to buy them back, because sometimes the dealer intends to price low in order to breakdown the previous sucked more cheap financing, code, and then they quickly pull l. Although in this stop-loss re-purchasing process, we paid the price, but it is the value. Because, through this frustrating the intention of making strokes Geingeaud Jie, Zhang Sheng is the inevitable afternoon.