Category: Money Tips Date: 2006-01-30
Volume, as one of the four elements of technical analysis has always been real master of the attention, but why retail investors in the stock market there are deviations in the use of it? We believe that the major transformation of its understanding of the strength standard is difficult to grasp. Our experience is that the use of both the amount of line î–?volatility filter out some of the clutter in order to better grasp the main trends. And that the main kinds of indicators for analyzing the cost analysis the main intent, there is a good combat value. I will call it - "breaking the critical secondary signals."
Both the amount of line is a reflection of a period of time the average market turnover situation, that is, the technical indicators for trading the trend will be a period of time after the turnover of the sum of the average volume of the column to form a relatively smooth curve, that is, both the amount of line. A general technical analysis software to 5,10 as the sampling number of days, Hong Kong and Taiwan following the old Europe and the United States use of 6,12 as the old cases of sampling days. Our experience is:
1. In the early rally, are the amount of line with the stock price continue to record high, an indication of hot money being added; Quotes drawing to a close, although a record high stock prices, are the amount of departure from the line began to appear, indicating that the market will continue to chase the high decline; shares continue to create a low, but both the amount of line has to go flat, and accompanied by intermittent heavy volume, indicating that stock prices bottomed out soon.
Average daily volume of 2.5 lines in 10 continued to fall below the average daily volume of lines, and no Guaitou trends, and RSI under 85 to wear, warning signals: decline will continue. 5-day average daily volume of lines in the amount of line side up, and wear a 60 on the RSI shows that will continue to rise again.
Empirical Analysis: October 30, 2002 000625, Changan Automobile, the stock's five day average daily volume of traffic lines and 10 lines long upward divergence began, during which stock prices despite repeated, but because of five lines and 10-day average daily volume of the amount of lines to create a new high, indicating that the unit has been gather popularity, is entering the main section up, but the 17 Yuan area, average daily volume of 5 lines marked weakness, May 23, 2003 stock price of 19.74 yuan hit reluctantly a new high, but this time the amount of 5-day average daily volume of work had been 10 to run a longer time line, indicating that the market will recover a high enough price at a relatively high area.
Cheats: Due to both the amount of 5,10-line sampling time is short, volatility is more frequent, the author's experience is on-line using (8,13,34,55), in particular (13,55) a group contour using (8, 13), on-line reference to the (5,13), determining the means used Jin Cha, Sicha, a deviation and so on. As the volume of price first, real excellent results.
Decided a stock sale and purchase decision-making Another point is the analysis of the cost of the main positions, a number of stocks that has been able to one up to rise, and its main bargaining chip in the cost of the collection has an important relationship, and these will benefit from both the amount of line to find clues, because it reflects the real cost of high and low and the positions of the colonel as its high cost and the positions of the sharp rise, then the easy out, such as the amount of lines and share prices are a clear departure from, we should always prepare for the main low-cost that may arise at any time the phenomenon of the payment.
Empirical analysis: in late 2003 and early 2004, why do some stocks rebounded strongly, while the majority of shares "unknown", an important reason is that the former started in 2003, when the end of the year were the main force of the theory of the amount of reflected the proportion of costs and positions.
Cheats: both the amount of line at all-time high at the massive turnover of the unit is usually dense regions, if there is turnover of secondary confirmation, even if the amount of lines do not hit all-time high, but the average is closer to, but can also be that the main area of Opening. Here the positive positions, theories of space not less than 30%, but Niugu shares should reach 100%
