Category: Money tips Release Date: 2007-06-28
Channel effect is based on the inertia effect of a special effect, that is, stock prices continued to a particular direction. Many of the indicators can be the formation of channels to study the channel effect should pay attention to channel gradient and channel width. Channel slope refers to the channel up (or down) the slope; channel width is 5 MA and 10-day moving average of the folder into a region the size of the ribbon. In general, the channel effect and channel slope is proportional to, and is inversely proportional to channel width, channel by channel gradient and channel effect of the ratio of the width of the decision. The higher the channel slope, channel width of the more narrow-channel effect is more obvious, more than 45 degrees as a high gradient channel channel, its channel effect is very obvious.
For the ascending channel, the channel effects to make the greatest impact must pay attention to the following aspects:
First, the use of channel transactions to bear the effects of relatively large risk. Because once the channel formation, the stock has completed the majority of accumulation and Xi Pan, is pulled into the stage, the dealer may be distributed at any time, but this time a relatively high cost involved, so when the transaction should be fully prepared for.
Second, after the formation of channels will not be easily destroyed, but the channel is damaged will need time to re-mix, a phenomenon in those greater than 45 degrees is particularly evident in the channel. Therefore, the channel is damaged we must withdraw from the first time, do not entertain any illusions. Because the dealer PLAY pulled a stock, be sure to let investors have confidence in the stock, it will not easily break the most important technology in place to dampen investor confidence, resulting in no one to pick up the last stick, and thus so that the dealer trapped them. Although sometimes the dealer will be intentionally suppressed, but the majority of the pulled up before a bargaining chip in order to absorb more, or Xi Pan, while in the high case for this phenomenon is relatively small.
Thirdly, should pay close attention to volume changes. In a perfect rising channel, the volume change should be a big bang, a relatively Su Liang, and finally heavy volume. As the chips have been pulled up period in the concentration of trading volume is not too much; but pulled up late, due to the dealer to complete the final shipment volume will further enlarge. So, after buying the stock, once seeing a sudden volume amplification, there is a certain increase in the stock, we must be careful of.
Fourth, should be applied a number of technical indicators to assist in the analysis. More efficient method of departure is to use indicators to help determine the top of the so-called departure is the record high stock prices, while the targets are not high. Such indicators rsi, mtm and so on.
In general, the use of access to trade will help capture the effects of strong market, but its drawback is that higher risk, so more suitable for those who are more familiar with the radical on the stock market investor.
