Category: Money tips Release Date: 2006-02-24
A ball touches the floor to rebound and hit the ceiling will fall, support and pressure the same as the floor and ceiling price sandwiched between. When we are dealing with price trends, and graphics array, support and pressure are two important concepts. Assess the strength of support and pressure will help to determine the trend will continue or be reversed.
Support refers to a particular price levels, the department's buying power enough to interrupt or reverse the downward trend. When the decline hit a support, prices will bounce up in price trends, the support is indicated by the number of a bottom level of the interface like a straight line.
Stress is caused by a particular price levels, where the selling power enough to interrupt or reverse the upward trend. When the upward trend of touch pressure on prices will turn back down. The Jiagezoushitu, the stress is indicated by the interface into several levels of head-like line. When the price hit a support or pressure without power returned, it will strengthen the support or pressure of the spirit come out.
Minor support or pressure will cause the suspension of trends in Dayton, the main support or pressure will cause the trend reversal. If the traders are in support of buying and selling pressure, it would be the ideal state.
Support and pressure exists, it is because people have memories. Memory dictates that we buy and sell at a price. The people's buying and selling transactions will form a support and pressure. If the trader remember that the price has recently dropped to a certain standard to stop the rebound. When prices go back to that level, they are likely to buy, remember that if the traders had been an upward trend in the recent reversal in the downward to form a standard peak, when prices go back to that level, they are likely to sell and the shorting.
Support and pressure exists, it is because people feel pain and regret trading, a loss of positions held by traders feel the pain. When the market to give them a second chance, most of the losers often determine some sort of relief appearances. Traders miss the opportunity to feel remorse, expect the market would give them a second chance. In the trading range, price fluctuations is limited. Caused by the loss or the missed opportunity will not be too serious, so the emotional pain and regret will not be very strong, once the price from the trading range, after a breakthrough will occur a strong pain and remorse.
In the horizontal movements, the traders in the range of the lower side edge of buying, in the side edge of shorting. Rising trend, short because of shorting and that painful long to buy a little while because there is no remorse. If the market give them a second chance, which will result in two kinds of experience buying, short-long pain and remorse, which is the motivation to buy, in the upward trend in the trend in the formation of reentry support.
In the pressure zone, while the short-long feel the pain feel remorse, both sides are ready to sell. When prices break down by the trading range, after long and painful mistakes that and look forward to the price and allow them some sort of relief rally, appeared short because there is no more shorting some, but remorse, want the price to rebound while shorting a second chance. Long suffering and the repentance of the formation of short pressure ---- the downward trend in the last file resistance. The intensity of support and pressure, depending on the intensity of the feelings of the people trading.
The price of a transaction-intensive areas, who has been blocking a number of trends, it will be a fierce artillery battle. The side has many defensive cover to attack the party make progress difficult. Transaction prices in the dense area to stay longer, multi / empty the two sides in the region invested more intense emotions. If the price is approaching the top of the region, it is supporting. If the price is approaching the region from bottom to top, it is the pressure. The role of transaction-intensive areas may be interchangeable, it can be supported or pressure.
The intensity of support or pressure depends on three factors: trading range of the length, height and volume. In other words, you can observe the transaction-intensive areas of the length, width and depth.
Support or pressure zone ---- longer the length of time the number or price ---- return to its greater its strength. Support and pressure as the finest wine on the same, the more the more Xiang Chen. 2 weeks of the trading range, it can provide a modicum of support and pressure: 2-month interval sufficient to allow people to constitute a habit moderate support and pressure: 2-year interval will be regarded as the standard of value to play major role in supporting or pressure.
When the support or pressure is broken, as time passes strength will grow weaker and weaker. Losers keep playing, took over the new price levels approaching those for the original, and not put a similar emotional commitment, has lately been feeling will be printed on distinctive Laohen. They may still be in the market, we still feel the pain and upset and looking forward to a second chance, those people who mistakes a few years ago, perhaps no longer in the market, and their memory is not much significance.
Support and pressure the more the number of times being tested, they are the stronger force. When traders find that prices continued to place at a particular level of return, once the opportunity to re-appear, they are more willing to bet custody reversal.
A high degree of support and pressure the higher the strength the more powerful. Support and pressure volume area the greater the strength of the more intense. A large volume transaction-intensive areas, on behalf of traders actively involved in the formation of a strong emotional commitment to ----. The low volume on behalf of traders do not attach importance to the price, the strength of its support or pressure is limited.
