Category: Money Tips Date: 2006-10-04
Securities market, price, volume, time and space are elements of the analysis. The specific circumstances of these factors and mutual relations are the basis for correct analysis. Price and volume is the most basic performance of market behavior. Past and current transaction prices, trading volume covers the past and the present market behavior.
Technical analysis is the use of the past and the present volume, transaction price data, graphical analysis, and indicators of analytical tools to predict future market movements
. At a point on the price and volume reflects the buyers and sellers together at this point in time the market behavior, a temporary equilibrium point between the two sides.
As time changes, the balance of power will continue to change, this is the amount of the relationship between price changes. Price, volume is the basic elements of technical analysis, all the technical analysis methods are based on price-volume relations as the research object, the purpose of analysis, forecasting future price trends, to provide services for the investment decision-making. Volume and price trends have the following relations.
1, the stock rose as the volume increments for the normal characteristics of market conditions, such increase in volume rising values relations, said the stock will continue to rise.
2, a band of the rally, the stock with the increasing volume and rising above the previous peak of a wave, a record high levels continue to rise, but shares rose in this band throughout the volume level is lower than the previous one-band rise The volume level of price break a new high level of traffic volume Quemei breakthrough innovation, this band is doubtful stock prices, but also a potential price trend reversal signal.
3, the share price with the volume decrease and rebound in stock prices rise, volume has gradually declined, trading volume is the driving force behind rising stock prices, show price trends driving force for less than the potential reversal signal.
4, sometimes slow and incremental volume as the stock gradually rising trend of gradually rising suddenly become the vertical eruption market, a sharp increase in trading volume, stock prices soared. Followed closely by the recent wave of trends, followed by a significant decline from the volume, while stock prices have fallen sharply. This phenomenon has come to the end of that rally, increased fatigue, exhausted trend, indicating a trend reversal phenomenon. The significance of the reversal will depend on the rate of increase in stock price before the wave of the size and the extent of volume expansion.
5, in a band of long-term decline, after the formation of valley rebound in the stock trading volume did not increase because of rising stock prices, stock prices rose want to vibration fatigue, and then fell again to the previous trough in the vicinity, or higher than the bottom. When the second volume was lower than the first bottom of the trough when the stock price up signal.
6, they fell down below the price trend line or moving average form of lines, while the larger volume, the stock price drop signals a trend reversal formation of stress bear market.
7, the stock was down quite a long time, panic selling, with the growing volume, stock prices fell sharply, following the panic selling, the expected share price could rise at the same time created by panic selling low-priced it will be impossible in a very short period of time below. A large number of panic selling after the end of often short.
8, when the market conditions continued to rise for a long time, a sharp increase in volume, while the stock was up weak, hovering in the high-grade, can no longer rise up sharply, indicating a substantial share in the high-end shocks, heavy selling pressure, thus forming fell factors. Shares falling after the big trading volume in the low-end, stock prices did not fall further, only a small change in the price is purchase signal.
9, Volume form as a confirmation of the price. In the form, if there is no volume confirmation, price patterns will be virtual, and its reliability fan.
10, volume is a leading indicator for stock prices. With regard to price and volume trends, in general, the amount is the price of a pioneer. When the increase in volume, the price will sooner or later catch up; when prices rise but no increase in volume, the price will fall down sooner or later. In this sense, it is often said that "price is nominal, and only the amount is true."
Quotes of time to determine when during a very important role. A trend has formed a fundamental change does not occur in a short time, the emergence of fluctuations in the opposite direction to the original trend will not have a big impact. The tendency of a formed on forever, after a certain time and there will be a new trend has emerged. Cycle theory of focus of concern is the time factor, which emphasizes the importance of time.
Space in a certain sense, can be considered the price of one hand, refers to the price fluctuations can be achieved to the limit.
Edited in the gold-line
