Category: Money Tips Date: 2007-03-04
Symmetrical triangle triangle known as convergence, is the collation of the more common form, and sometimes reverse the trend also appears a breakthrough, but the number appears less likely, according to market statistics, symmetrical triangles, about three-quarters of an order form, a quarter of the city is up there at the top or bottom of a falling market turnaround in form. The so-called order form 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 trend of the past trend of movement, known as order forms.
Symmetrical triangle price fluctuations by a period of time is formed, and its fluctuations in a certain region, gradually narrowing, that is, the highest price for each round of volatility than the previous low, while the low than the previous high, showing a convergence of compressed graphics, to these short-term high and low points in a straight line, respectively connected to form a fairly symmetrical triangle, and this symmetrical triangle trading volume, with the increasing degree of stock price changes of wavelet decreasing the apex of the triangle area are often sensitive to Finally changed the timing plate.
Formation mechanism:
Symmetrical triangle is because the strength of both long-short paragraph in the prices of the region are evenly matched, balanced state of being formed. Shares from the first one, after a short-term highs, but will soon be the buyer-driven price rise, but the power of multi-market outlook is not much confidence in the future, or a little bit hesitant, so shares can not back up to previous high to have been turned down once again; in the stage of decline, those investors who do not want too low selling cheap sale or prospects still have hope, so drop the initiative is not strong sell-off, stock prices have not fallen on the low - times they picked up a low, long-short hesitation, the two sides of contention, causing the share price has been narrowing the scope of the fluctuations, so it developed into this pattern.
Features conditions:
1) The convergence of price volatility was like, volume also will be reduced, upward break requires a lot of recognition, do not need to break down;
2) symmetric triangular form of the smallest increases in measured from the first one up high and the bottom edge began to draw a parallel line, we can expect share prices to rise to at least this line will encounter resistance; As for the rising rate of stock , will be the same type before the start of the angle of rise; form at least drop measuring method is the same for the parallel resistance line;
3) break up the tie before the volume can be discerned in advance, the stock closer triangle vertices break, attack strength is also smaller, usually in the bottom 1 / 2 or 3 / 4 a breakthrough for the most standard graphics, the best The breakthrough time is decreased in the two went up after the third time. ;
4) the formation of symmetrical triangular shape of the market sentiment for the sidelines hesitant because most investors believe that such developments should be clear later intervention, more than to see if the thick atmosphere of this pattern occurs, will have to be careful to form the head shape;
5) The symmetrical triangle breakthrough may occur short-Fan Chou, rising Fanchou ends connected to a high point of the triangle formed on the sideline, drop Fanchou are hampered by low under the edges connected to the triangle, if the stock anti - smoke break mentioned above, the triangle edges, then the pattern may not be established;
Operation Strategy:
The best buying and selling point form a triangle on the bottom when a breakthrough, followed by acts of any Fan Chou was buying and selling point of the second better.
