Category: Money tips Release Date: 2006-04-22
The basis of technical analysis is based on the chart record, from the traditional development process in terms of the chart has gone through three generations, that is, line graph, bar graph, candlestick chart, until now, most investors are still using bar charts or candlestick chart diagram . However, both the stick figure or a candlestick chart, which can record up to 4 message that open, high, low, close four price data. In the long-term investment career, everyone will understand this point - open, high, low, close four times the market price of many of the main deliberately created, but the chart can not reflect the illusion and, therefore, investors often fall into the main chart premeditated trap. In addition to this 24-hour foreign exchange market transactions, open market value and the closing price on the technical analysis is almost meaningless. Can both like to find a bar chart and candlestick analysis so easily, while transaction information to reflect the market depth chart to express way? ProSticks inventor Lee Jung-ping of its 30 years of trading and analytical experience summed up in response to market demand, the call was finally launched by the end of 2099 ProSticks.
ProSticks is actually a combination of the two sets of analysis tools will be four-dimensional (an analysis of the relationship between stock volume and price method) and the people are accustomed to use the advantages of combining candlestick set of analysis tools. ProSticks a unique place within the volume is to provide a period of dynamic information, the most important transaction prices, that is a focal point; while the turnover of concentrated region, is an active area; deal sparse areas, that is, deviate from the tail area. To change the level of the main open-market price of income is relatively easy, but if you want to change focal point, active zones and other data to be spent on a lot of money to create false transactions, increase the cost of market manipulation, then the difficulty of natural knock-on effects were active large cap stocks, index futures, foreign exchange, the market is the main force to create a false impression it more difficult to start with, so ProSticks provided by the new information will be very good reference material.
ProSticks than the bar graph and the candlestick chart closed the opening level of the data over four three parts:
One focal point:
A focal point of the selection principle 2, one targeted at the stock or futures transaction records to the highest traded price for a focal point; for index or foreign currency in order to stay the longest price for a focal point; an important focus point in order to distinguish the degree of technical analysis in the ProSticks system, set the amount of focus, that focal point corresponds to trading volume. The larger focus, indicating that the more important focal point can play a support or resistance effect will become. On the contrary, the absence of a high focus on the amount of support, the focal point will not be able to play a strong role in the support or resistance. Focus on the calculation of the amount, there are two, the first calculation is based on turnover, and the other is based on a time basis.
The second is an active area:
Active area is a statistical concept, which is the price at a time distribution, the median price of the focus on the location of plus or minus one standard deviation to quantify the point that 68% of turnover will focus in the active zone, the other more deviate from the price of only a small number of transactions is not the focus of transactions and therefore indicative of price is not great.
3 is a departure from the tail area:
Deviate from the tail area is also a statistical concept that in extreme price of less than 3% of the transaction. The so-called extreme price refers to a period of high and low, to a daily chart, for example, from the highest level for the whole day starting from the lowest bit down statistics or start up statistics, the turnover of less than 3% of the area that is a departure from the tail area. Because of the extreme price of the transaction may be higher than 3%, so she does not have deviated from the area each ProSticks tail. In addition, even though there may deviate from the district's tail, does not mean that there will be high and low, it may only appear in the high, it may only occur at a low level. Deviate from the areas most handy is the tail index, foreign exchange fluctuations of the species, investors will often see a rapid increase or decrease in market conditions resulting from a callback, this time it means experiencing a strong sell-off or support, but ProSticks None other than the chart shows this phenomenon.
Carefully to understand this three-part depth market information and analysis in the analysis were based on more, whether it is used to determine the logical way of thinking, or in conjunction with traditional technical analysis methods can find a "Journey Into Amazing Caves" new experience.
