Category: Money tips Release Date: 2007-01-06
Shenzhen and Shanghai stock markets this year, the trend of more and more apparent in a characteristic, that is the market trend towards an increasingly on technology-based, meaning that emerged a few years ago the anti-technology-oriented techniques down gradually disappeared. Ye Hao, whether the main market, retail investors and are forced to obey the laws of the market itself, any attempt to reverse the trend of the efforts are in vain.
The emergence of such a stock market characteristics, the fundamental reason is because today's stock market has far from that in previous years, the size of the stock market today, many listed companies, the market capacity of which is before the match. When the stock market volume increasing when the stock price movements should have their own laws have become increasingly apparent to everyone.
Stock prices in all of these laws, the most intuitive is the stock price movements patterns, and commonly known as the graphics. Looking for a sure win graphics, in fact, have found that the trend of good form, using these patterns to uncover the nature of market trends, which capture the best stocks can bring huge profits.
The first is the introduction of guaranteed profits, graphics round-bottomed, the reason for it to come first, because history has proven this graph is the most reliable. At the same time, the graph formed, it supports an upward trend from the most powerful and lasting. In the formation of round-bottomed, the market experienced a radical change in the relationship between supply and demand, market behavior seems to be an interpretation of the science film, the city of potential changes in the whole process of using slow motion presented to all investors.
It should be said, round-bottomed shape is the most easy to find, because it gives ample time to let everyone see it is there. However, it is necessary to form a longer time because it all too often overlooked by investors.
Round-bottomed, this means a protracted decline in stock prices after the decline gradually ease and eventually stop falling sideways at the bottom after a period of slow recovery again, and finally up the development process. We say that round bottom is a process rather than just a map, as depicted by the stock price is just a graphical representation of this process only. We must understand and analysis is that this had happened in the process, not just appearance.
When the stock price began to fall from the peak at the beginning, people have confidence in share price rebound, market sentiment is still warm. Therefore, the stock price volatility in the outpouring of participation of the people still look great. But in fact, shares in the oscillation is gradually downstream. Before too long, people will find a market at this time is difficult to make money, and even often lose money, so interest in the market decreases. The fewer people involved, the stock down even more to the development of balance. It is this cycle led to falling stock prices, more and more people leave.
However, when smaller and smaller volume, when, after finishing a long period of changing hands, everyone's holding costs could be cut, this time the driving force fell less and less, since we want those people who leave leave the The remaining people are also reluctant to sell at a loss even if the stock price fell further. This stock will not fall. But this time that no one wants to buy the stock, we disheartened. Such coverage may have to last for a long period of time, forming a sideways stock price at the bottom of the situation.
This sideways to sustain its hard to say how long, sometimes months or even years, sometimes a few weeks, but we are interested in is that this situation will sooner or later be broken, while the disc is the stock symbol Bureau began to break slightly up, turnover began to enlarge. The essence of this phenomenon appeared on the market to buy a new power to break the original balance, and thus force the stock price.
Such a development is always progressive, conditions are ripe, when the new buying power has continued to improve the time, indicating the success of the market bottomed, there is an inherent requirement of upward mobility. We had a round bottom part of the right half.
When the stock traded under the impetus of amplification break up, this is a rare opportunity to buy because the amount of time spent to form a long round-bottomed, so the bottom of the accumulation of a more ample power, once the break up, there would be a rather strong and long-lasting increases. Investors then must be decisive, not to be intimidated by the time the weak market sentiment.
