Category: Money Tips Date: 2006-07-03
We talked about pre-judging with K-line portfolio of shares have bottomed out, this is the most basic prediction method, of course, the course of our practice is not necessarily see the bottom of this combination immediately to confirm the arrival of the main Jiancang is needed because the of time, not one or two days can be done, and sometimes take months or even one year. Therefore, we often will use patterns to determine whether or not or the bottom of the main Jiancang not really come.
Any main Jiancang would leave a trail because most of the main hope at the bottom of a large number of buying, I often will appear at the bottom of repeated shocks, raised the pressure trend. We are the light of experience can find a lot of the classic form, such as the W at the end, head and shoulders bottom, triple end, etc.. But for the average investor, would simply make judgments on the basis of shape, do not understand the principles of their formation, naturally do not know how to make flexible use and learn by analogy.
The author is the application of wave theory, and promoters, in a large number of application and actual process that shape the development and operation of wave theory is inseparable from, the 5 waves up three wave adjustment process is the process of the formation of various forms, such as head and shoulders bottom, and W at the end.
Head and shoulders bottom formation process is as follows: stock price decline would have significant volatility, most will have a five-wave decline, then the head and shoulder at the end of the left shoulder is down four waves formed by a rebound. Continue to do after shares rebounded after the first five waves down, if the first five waves hit a new low, and ultimately recognized as the lowest point, and then start a new one up, then the right shoulder is the stock price rose after the first one after the first wave two waves formed after the callback, so the stock fell after 4 wave, 5 waves, rising a wave and two waves formed after the head and shoulders at the end, of course, the real head and shoulders at the end of the need to recognize, when the rise in three waves over the left shoulder of the success of connection, the head and shoulder at the end of thoroughly completed, the new master Shenglang commence immediately, and many investors choose to judge based on this buy point.
Therefore, to understand the formation process of the shoulder at the end of the natural enemies have a more in-depth understanding. The original head and shoulders at the end of a fall and rise in wave after wave of the beginning of the end of a common shape. So that we are very clear about the wave form of theoretical knowledge and general judgments together, they will not use machinery to determine the general form of the theory. For example, if a pattern very much like head and shoulders bottom, but there is no obvious pre-and five waves down, this time we must be careful, and most likely fall relay, not really at the bottom.
Of course, this formation process is still very easy to let us understand the W at the end. If you drop the first five waves is not new lows, that is what we call the failure of five waves, so is the W at the end. Of course, V-bottom formation process, too, is no more than five waves of mass destruction is very rapid decline, the stock rebounded quickly formed bottom.
In my opinion, to study patterns, we must study wave theory, wave theory, completely understood well the classic form. Long-term studies will naturally form a clear sense of rhythm, rhythm is happy Tazhun investment premise. The formation of other forms are also similar, the investment could try to analyze themselves.
