To determine the trend to convert points Money Tips

Category: Money tips Release Date: 2005-12-24

â–?Pan Weijun chips for long-term concern is for the company's trend, but a bargaining chip for the short-term market trends for the major. We tend to stock up the process of selling chips, such a move can be sold out rallies to explain, but the real heart impulse is to bet that they can sell the highest price for a certain phase, that is, bet on falling stock prices tomorrow . In fact, we all know that can be sold at the highest price is met, but not impossible to do, but will still unconsciously gamble on a very small probability of this emergence. This is of course a wrong decision-making method, which is that we did not use the root of a rational approach to investment decisions, it is also a kind of anxious state of mind.

Actually, I want to make decisions, the key is to sell an upward trend in stock price changes. Only when we determine the upward trend of stock price change is about to or have time to sell, but shares rose in a row, followed by there are still likely to continue to rise. Judged by the following points might enable us to more rational approach to analyzing whether the upward trend in stock prices or has conversion occurs.

Points â‘? a noticeable decline.

If the stock price has always been dominated and there are no major Yin Xian Yang Xian, then the upward trend is still continuing, so the big Yin Xian is the prerequisite. Perhaps doing so, we will lose the opportunity to sell at the highest price, but we can ensure that the seller in the sub-high prices. Such as share price rose from 5 yuan to 10 yuan, if there can be large Yinxian 9 yuan after selling, but, if they want to sell at the highest price, they would have risen to 7 yuan, when the stock sold and will not be until the 10 yuan emergence of price.

Point â‘? rebound after falling weak.

Even if there is not necessarily a trend of large Yinxian the conversion, the key lies in analyzing the recovery efforts after major Yinxian. If the pick-up in the course of the next share price continues to hit new high in front, then the continuation of an upward trend is still possible, will have to pay special attention to the contrary.

Point â‘? volume continued to drop.

An important basis for price increases is the volume, especially when the market bubble began to discuss whether there was a much larger volume is required in order to try to jack up stock prices and even to boost its rise, the big rebound after Yinxian be able to maintain the original volume during the a large number of a growing trend can continue the key.

Based on the above elements in combination with some classical forms of judgments can give us greater confidence. Example in large Yinxian shares rebound after the process of decline in trading volume and failed to break previous high point, then we must guard against the emergence of double-top shape. If the majority of Yinxian another record high after the stock price, but a high degree of turnover is relatively limited and shrinking, then we must guard against the emergence of head and shoulders pattern. However, when judged in the classic form is absolutely necessary to advance the amount that would otherwise occur until the form is completely stock price already has a larger decline, we will lose a lot of interest.