How to analyze the gapped gap Money Tips

Category: Money Tips Date: 2006-06-08

In general, if there is no very special circumstances, changes in stock or stock should be carried out in a row. However, in actual operation, the investors are often encountered adjacent to two K-line with no transaction between the blank area, that is what we often referred to gapped gap. From a technical analysis point of view, gapped gap is generally a relatively clear trend in the signal. If the stock gapped up, then rising trend is likely to arise; if the stock gapped down there, you may indicate adjustments or down. Set aside an annual bonus of stock dividend, allotment or issuance of such a result of the stock price re-calculation of the gap formed by ex, we encountered gapped gap in general can be divided into four types: the normal gap, breaking the gap, continuous gap and exhaustion gaps.

For the average gap, the often limited in scope, finishing in the volatile form, when the stock gapped temporary gap, the stock price at that time generally will not lead to significant changes in patterns and trends in a short time the trend is still maintained consolidation pattern. From the statistical data, this gap in the three trading days will be covering. But the remaining three types of gaps, each with its own different characteristics.

Breakthrough gap that typically appear in the initial stock price to break the disk Bureau, when the break gap appears, the share price will quickly out of order status or when the transaction-intensive areas, under normal circumstances, breaking through the gap in the three trading days, or even over an extended period are will not be easy to cover. In the stock or stock features a clear trend, the often gapped phenomenon of the emergence of the trend of continuing gap formed. The important feature of the continuing gap often appears in the Quote of the acceleration process at the same time have less intensive forms accompanied traded. As the gap continued to fall on the Quotes have contributed to the role of aid, and therefore will not be easily covering the same. Investors should note that if there had been a breakthrough-type gap, in extreme cases, can sometimes produce more than 2 continuous gap.

Quotes about when the trend towards the end, due to the concentration of the power consumption of multi-release or the short side of the panic selling, which will appear failure-type gap. However, failure-type gap with this breakthrough and continuous gap gap is different from the general will soon be covering in a short time, but also often accompanied by the end of the existing market trends and a new order form the beginning. Through a variety of gaps in understanding of the different features can be found, general guidance of the gap for the actual operation is very limited.

Quotes in the evolution of the gap analysis, investors should note the following points:

First of all, the generation gap from the break to the failure in the emergence of the gap, reflecting the long-short market, it is precisely the strength to extinction by the rise of strong mutual transformation process, therefore, these gaps in turn, generated in the Quotes. However, in the evolution of a trend which is not necessarily all of the gaps will appear, and sometimes when the stock price trends have remained relatively modest changes, may a gap at all. For the hot stocks, the gap analysis and effective. But Zhuanggu fully charged after-hours are much more difficult to determine their movements with the deficit.

Second, the break gap usually means the beginning of Quotes Change, the greater the gap, this indicates that the trend was stronger. Break up with the gap must have a turnover makes sense, but break down the gap in general is not necessary to consider the changes in volume.

Thirdly, since the persistent gap in the middle of the trend to accelerate, which can be used for Quotes forecast the future stock price or index of variation is likely to be close to a breakthrough and the persistent gap between the gap distance.

Finally, investors should pay attention to, and the gap is due to more long-short sides caused by the extreme state of mind, with the market incentives for the gradual digestion, the gap in theory will be covering, in general, and the gap will be followed by regular closed sub-Quotes away, otherwise there may be an intermediate Quotes from the next to cover.