Category: Money Tips Date: 2006-09-11
Read Handicap language - space, time and period of the relationship between price movements
First, resistance and support are two forms of space
Long-short period of price charts is a testament to both the balance of forces, when the multi-power strong, the upward go, when the short-strong force, to the decline, simple as that. Is like a man mountain climbing and skiing. Will climb obstacles affecting the upward force, ski so slippery when you encounter resistance not keep city will be transformed into a period of resistance and support. Resistance: short power-sheng, long a weak strength of the natural formation of the local resistance, in practice, due to the mass desired consistency, the following areas often become obvious resistance: 1. Previous Close: If the date when the opening below the previous closing price, then, In the course of the climb will be in this resistance. This is because after a night of reflection, the long-short before the close of the two sides reached a consensus on opening day, when a large number of shareholders before the closing trading price in the auction, if the period of lowest-open, meaning that selling mood. In the period of price recovery process, on the one hand was the new selling at any time against the other, close before the closing, the morning will play a role in the accumulation of selling, making up this long, but the more easily closed. 2. This Open: If the day after opening lower, due to the accumulation in the opening price at auction, when a large number of selling, which bounce back here in the future, we will encounter significant resistance. 3. Moving average short-term position in the operation on the 5th line, 10 lines were technology to send extra value, once the period of price climb to here, there will be believed in technology, customer-determined short-term sell-off and therefore I will be very natural resistance to form. 4. Previous high point: the reason why the previous intraday record high, because here there is a clear selling backlog meet resistance at this current price drop again picks up again, once near the previous high point, there will be new The make and air forces to intervene, while bulls will become cautious. Therefore, the trend graph will form a clear M-head shape, but also the high point of the right of most of the time will be lower than the high point of the left side. 5. The previous low point: the formation of the previous low due to long-short mutual equilibrium, indicating that the strong buyer power, while the current price gradually lost support in this low, there will be a lot of selling to make space to join the ranks of resulting in broader market plunge, shaped like diving, because of 'diving' time is too short and will be settling here under the selling has not been finalized, so current prices rebounded to encounter resistance at this time. 6. Integer checkpoints: the role of people's minds due to a number of integer position will become a regular rise, a major resistance, such as 50,100,500,1000,10000 points. In particular, some view to an integer value often pass a large number of sell orders has accumulated. Of course, there are other resistance area, but the main is that the 6 species. Identified the resistance that the purpose is to sell at the highest point or the second highest point can be typically identified the resistance area prior to selling. Such as the short-term master are generally not sold in 10.00, but would prefer to 9.99, or 9.98 yuan in the newspaper to sell, in order to increase turnover opportunities. Alternatively, the current prices dropped from a height, after the second close to this high point Times, sell. Support: do not go down the local shall be supported by common support area the following categories:
1. Today Open: If the market opened higher, then dropped to Open Office, because of buying more precipitation, support will be stronger. The similar reason with the resistance.
2. Previous Close: If the forward price (or price) fall from a height, in the former closing at the support is also strong.
3. MA Location: mainly on the 5th line, 10 lines.
4. The previous lows: At the last formation of the low areas will generally become the psychological support of their argument is the same as with the resistance zone.
5. Previous high points: the previous high resistance at large, once the effective cross due to accumulation of the next buying more, so when fall back again, generally will be supported.
6. Integer checkpoints: schedule prices fell to 600 points from 700 points, naturally, raises reluctant sellers, breaking 600 points, is not easy, period prices fell to 10 yuan from a high office would also be supported. Identified the support is to seek to buy in the low areas.
As can be seen from the above analysis, support and resistance is a transformation that can be mutually contradictory, the original resistance could be a breakthrough in turn, supported by the support of the original breakthrough, in turn, can be a resistance. Support and resistance to the grasp of the big city also contribute to judgments. For example, when crossed the resistance zone, that market is very strong, and may buy or sell; as below the support zone, said the market is weak, you can short-selling.
Second, time-effect
1. Open characterization of the first to confirm the nature of the opening
Compared with the previous close, if it opened higher, indicating strong popularity, grab the psychological chips are more potential there is to the good side of city. However, if too many high-opened, so that those who bought the day before yesterday lucrative, can easily result in excessive profit-taking pressure. If the high point of opening a few, or only one or so, it indicates that popular quiet, long-short two No on fighting mood. If the lower opening, this indicates that eager to take profits or losses of flesh who can not wait, so there is potential deterioration of city possible.
If you suddenly opened higher at the bottom, and by a big margin, is often a fundamental reversal of long-short two sides when the power, therefore, constitute a correction when the contrary, Jiancang purchase opportunity. On the contrary, if the general trend has been rising more sharply when gapped, is often a symbol of multi-forces the last eruption, indicating that the bull market has come to an end, but rather the opportunity to pose a shipment. Similarly, in the bottom of the sharply lower short of hysteria is often a hit, but the opportunity to pose a bottoming out, and in the top of the popularity of low-hoi is that lax, Jie Yu rushed out to escape, but also look at potential weak municipal performance. Although there was a rebound, but basically the way tumble. While in a large city, half-way up or down the middle or low high-opened open, generally means to continue the existing trend, namely, high and open up good, down low to open when bearish.
2. Opening 30 minutes long in order to successfully arrive to eat, after opening the regular session not wait to rush, but in order to complete high short shorts will deliberately pulled, and eventually led to the rapid ascribed after the opening bell, which is a strong market common. In the weak market, the bulls in order to eat cheap goods, will drop down immediately upon opening, while the shorts will be playing homeopathy also desperately short-selling, resulting in the rapid decline after the opening bell. Therefore, after opening the first 10 minutes of market performance will help to correctly judge the nature of the market.
