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Data:2009-12-12 2:34
Pattern analysis
The so-called finishing refers to the share price after a period of rapid changes, that is no longer move up and down within a certain region in a narrow range of changes, and so on before the time is ripe to continue the previous trend. This shows the pattern of the past trend patterns known as finishing. Symmetrical triangle which consists of a series of price changes, whose rate of change gradually reduced, but also that changes each time the highest price, lower than the previous standard, while the lowest is higher than the previous standard, showing a compressed graphics, such as the horizontal direction from the price changes in the field of view, its maximum downward slash, lower limit for the upward tilt line, short-term high and low points, respectively, in a straight line connecting together, we can form a very symmetrical triangles. Symmetrical triangle volume, because more and more minor changes in share price decline, and then when the stock price suddenly jump out of the triangle, the resulting larger volume.
2. Market implications
Symmetrical triangle is because the power of buyers and sellers in the price segment within the region are evenly matched, temporarily formed to achieve a state of equilibrium. Shares from the first a short-term highs, but they are quickly digested by the buyer to promote the recovery in prices; but the power to buy the market outlook is not much confidence, or feel a bit hesitant about the future, so could not pick-up in stock prices to the last high point has now been turned around once again declined. In the fall of the stage, those selling investors reluctant to be too low or the prospect of cheap sale still have hope, so the pressure drop is not strong, the stock fell to a low not already picked up the previous low, buyers and sellers The wait of contention so that the small fluctuations in stock prices has been narrowing from top to bottom, forming a pattern here. Volume in the symmetrical triangle formation process in the steady decline reflects the forces of good short afternoon hesitant wait and see attitude, making the market being produced.
Under normal circumstances, symmetrical triangle pattern are finishing, that stock prices will continue the trend of the original movement. Only one significant breakthrough in mid-term stock price move before the sale can take appropriate action. If the stock price up broken resistance (with the volume must be large), is a short-term buy signal; the other hand if down below (below the break in a low volume), is a short-term sell signal. Symmetrical triangular measuring method is the least increase in breakthrough when the stock price up from the type of the first one up high and began to draw a straight line at the bottom of an equal, we can expect share prices to rise to at least this line will encounter resistance . As for the stock price increasing at a rate patterns will be up before the start of the same angle. Therefore, we estimated from measurement of the unit for at least the price level increases and the required completion time. Type of at least drop measuring method is the same.
3. Points to Note
(1) a symmetrical triangle formation, there must be a clear two short-term and short-term low appears high.
(2) changes in the more symmetrical triangle price close to its peak and has failed to break the line, its strength decreases, if too close to the peak of the breakthrough that failure. Usually in the bottom half or three quarters away from the triangle at a breakthrough will produce the most accurate movement.
(3) require large volume accompanied by break up, break down is not necessary. It should be noted, if the symmetrical triangle broke down when a great volume may be a wrong signal below the stock was not as much as the break down like the theory. If the stock tip of the triangle below, and the accompanying high turnover, the situation is particularly accurate; shares are down just one or two after the transaction, WebEx will be picked up and started up a real city. There are false break, we should keep redrawing the boundaries to form a new triangle.
(4) Although most of the symmetrical triangle pattern belongs to finishing, although there are likely to rise or fall at the top of the city appear in the bottom of the city. According to statistics, about three quarters of the symmetrical triangle pattern is a housekeeping measure, and the remaining quarter-turn type belong.
(5) symmetry triangle breakthrough may occur short-term move in the opposite direction (Fan Chou), rising after the pumping stops connected to a high point of the pattern of lines formed, after the fall is blocked at low pump connected to the pattern below the line, if the price mentioned above, after pumping more than location, type of breakthrough may be incorrect.
