Category: Money tips Release Date: 2006-03-17
A stock investors need to always remember: the trend is your friend, always follow the trend Zuogu Piao, not as a contrarian, homeopathic and prosper or perish contrarian. And learn how to use trend lines to determine the trend direction, For an investor who is one of the essential basic skills.
The trend line are tangential part of the theory, it is a low stock price volatility and low running connection or a high point and high point of connection lines. Such as the price is based on a low to run than a low-high run, the painting out of the trend line is an upward trend line, such as the price is based on a high point lower than the operation of a high-run, the trend line drawn is the downward trend line. There is a low price and high lateral extension of , there is no obvious upward and downward trends, which is also known as Xiangxingzhengli sideways. the trend according to the length of time, can be divided into long-term trends, the medium-term trends and short-term trends.
The long-term trend of the time span is longer, usually more than 1 year; medium-term trend of the time span should be shorter than the long-term trends, rather than short-term trends, usually 4-13 weeks; short-term trends in short time, generally within 4 weeks. a long-term trend should be formed by a number of medium-term trend, while a medium-term trend should be formed by a number of short-term trends. investors in analyzing trends in the process should follow the principles from long to short, the first long-term trend analysis, and then medium-term trend analysis , after analysis of short-term trends. a long period of mid-term, medium-tube short-term. The author, after a large number of practical operation the following view: medium-term trend is essential, investors easier to grasp, and actual combat are also the strongest. Thus, learning from the trend analysis is best medium-term trend began to start.
Trend line can be divided into support lines and pressure lines, will be running on low price and low-band connections into a straight line, is the support line; will be running high price-band and high-point connection into a straight line, is the line of pressure. Trend line connecting points the more reliability, the stronger the trend line is proportional to the length of its importance. long-term trend line and the medium-term trend line of the first and the second point should not be too close to the distance, such as the distance too close, the the formation of the importance of the trend line will be reduced.
The perspective of the trend line is essential, too gentle angle shows that the intensity is not enough, which is often said that the "meat stocks," is not easy to immediately cause the big move; too steep trend line can not be sustained, the trend of changes are easily and quickly.
Well-known master of Gann angle lines that: 45 the angle of the trend line is very reliable, which is referred to 1 × 1 Gann angle lines.
The trend line is very simple to use, stock, under the direction of a breakthrough in the supporting online support line, they should sell the stock, and to the next location of a support line to find selling points; share price below the upward pressure line break should buy stocks , and went to the location of the line of pressure to find a selling point.
Support lines and pressure lines can be transformed into each other, when the stock price down from the break a support, the original support line will be transformed into the pressure line; and when the stock price from the bottom up after the break a line of pressure, the original pressure lines would also be likely to turn into support line. In some time we can see that the share price run in two trend lines parallel to each other between the lines above the line of pressure, the following line as the support line, we often treat this situation called Xiangxingzhengli. Some investors often under the pressure line of those who support the short-term difference. the trend line and volume can always be used in conjunction with the stock break through the line of pressure from the bottom up, they often require large volume support, if there is no volume support for breakthroughs in many cases is false break.
Share price trends in order to overcome their closing price as the standard, but many investors do not have to wait until closing time, but the real breakthrough in the situation should be based on intraday, to make timely trading decisions, because by the time closing was too late the next day's high jump or low-opening jump will enable you to lose a large section rates, or produce a large segment loss.
Many people across the closing price of the trend line more than 3% of the margin as an effective breakthrough, I believe that the stock break line from the bottom up, you can refer to this principle: share price down below the support from the line, should be taken on a Po Wei the principle of departure, rather than dogmatically to wait for 3%.
In short, the trend line can help investors to the flow, looking for price movement trend in the increase in the buy and hold; in decline while holding cash at hand when you do not buy shares, investors should keep in mind, and never recognized the market to switch potential, until the trend line was broken up.
