Category: Money tips Release Date: 2006-09-15
1. Analysis of wave patterns connecting the high price point of the downward trend line for line, connected linear low stock price volatility for the rising trend line. According to the time fluctuations can be divided into long-term trend line (connecting the long-term fluctuations in point) and medium-term trend line (connecting the medium-term fluctuations in points).
2. Market implications of the trend line shows that when stock prices move to its fixed, it is very likely to continue to move along this line.
(1) When the rising trend line break when the ship is a signal. In the absence of break before the rising trend line is every drop support.
(2) When the decline trend line breakthrough is a signal into the goods. Did not rise at the break before the trend line is down every rebound resistance.
(3) a trend towards fixed-mobile stock with the longer, the trend of more is more reliable.
(4) The upward trend in the long run, every change in a change in volume than the correction of high, when there are very high turnover occurs, which could signal the end for the medium-term changes, tight as the come will be the reverse trend.
(5) In the medium-term changes in short-term fluctuations in the end, most of them have a high turnover, vertex more than the bottom of the case, but the decline in a panic often appear at the bottom of a very high volume, it is because the vertex , the stock market boiling, a large number of individual investors blindly rush, big and took the opportunity to hand-sell, at the bottom of the stock market plunged after a period of fear, ignorance and retail confidence has been shaken, see the price we sold, at a time when real long-term downward trend has reached the final stage of So big with a large number of buying hand-started, resulting in high volume.
(6) a rising trend line for each needed two clear at the bottom before deciding, every one down trend line, you need two vertices.
(7) the trend line with the level of the more steep angle into a more easily sideways by a short break, so the more flat the more a technical sense.
(8) stock price rise and fall in the trend in a variety of late, there are accelerated and the accelerated decline of the phenomenon. Therefore, the city or the bottom of the potential reversal of the apex, mostly away from the trend line.
3. Points to Note (1) The rising trend line connecting the low volatility, not all fluctuations in the high points; a downward trend line connecting the fluctuations in the high points, not all low volatility.
(2) When the stock break through the trend line, a breakthrough in reliability can be judged from the following points: â‘?If the day trading time, broke the trend line, but its closing price did not exceed the trend line on the outside, this does not is a break, you can ignore it, but this trend line is still useful. â‘?If the closing price broke the trend line, we must be trusted to go beyond the 3%. â‘?When the stock price up trend line break down the resistance requires a large number of transactions to increase co-ordination; but down below the rising trend line support is not necessary so often break the day's volume does not increase, however, the day after will be at the break there is increasing phenomenon. â‘?When the trend line break occurs when the gap, this breakthrough will be strong.
(3) experience in technical analysis often draw on the chart of each of the different experimental trend line, trend line when prove meaningless, they will be the rub off, leaving only the analytical significance of the trend line. In addition, the amendment will also keep the original trend line, for example, when the share price fell below the trend line after hearing that the pick-up in this trend line above, analysts should be low and the latest from the first the formation of a low re-draw a new line, or from the second low, and new lows revision of the trend line more effective.
