How to avoid investment in the stock market the technology trap Money Tips

Category: Money tips Release Date: 2006-03-01

Securities market in the bull market that investors expect. But the bull market for investors, does not mean no risk; on the contrary because of severe market volatility, long or short time of existence of traps at all stages of a threat to investors. Here we mainly talk about from a technical point of view of the different stages of investment traps.

The initial short bull trap

Start each round of the bull market are long-term bear market brewing results. The long-running bear market, resulting in market equity prices continued to slide, the minds of investors, is also due to environmental constraints and the lack of a correct understanding of the securities prices. For example, between 2006 2,3 on 1300 is a very rare near the low-cost Jiancang or Huanchou range, but it appeared at that time whether it is the top arguments.

Bearish technical basis cited by those who quite classic: According to the support and stop the mutual transformation of the technical theory, the history of an important market bottom will form an important future trend of rising resistance to the formation of an important top. January 29, 2002 to 1339 points, January 6, 2003 to 1311 points, and November 13, 2003 to 1307 points are adjusted to the important long-term bear market bottom, when the market was up 998 points, after the beginning that there are indeed 1300 points will form a regional mid-high, and then led the market down to start a new round of thinking.

But technical analysis is not Mangrenmoxiang, talk about the changes start with the fundamentals at that time, only from year to see the location of lines, moving averages, we should have a new thinking. At that time the market experienced 998 points to 1223 points, a rebound, the group has completed a line under years of repression of the fall (referring to 1223 points to 1067 points fall), the situation in the absence of new low, the market rebounded again points into the ultra-hop 1223 1300-point region, formed on the Dow theory, the trend is rising higher than the previous state wave crest, and trough is higher than the previous trough of the techniques identified. During the same period the market at 1300 points, finishing the shock, the annual line has been flat or even be higher in the trend, and has emerged, and other short-term moving average cross the formation of gold precursor.

Sustained bull market in the short trap

In the current bull run through the month of 2006, 4,5 with the outbreak of non-ferrous metal plate as the representative nature of Quotes, the market leapt above the previous 1670 points, followed by shock and once reached a high point of 1757 points, close to the prevailing market investors The view that the "102" Highland --- April 7, 2004 to 1783 points. At this time, particularly large differences between the market and see an empty person, "that the 1757 point is the high point in 2006," was once investors generally recognized.

1783 points as an important technical resistance is indeed on the market, constitutes an important psychological repression, as "1757 is the 2006 high point" of the judge provided a seemingly reasonable technical basis. However, after the bull market trend in market access is the most important factor. Especially in the 1757 high point of emergence, the market has not fallen below the callback June 14 that year of 1512 points, has never issued any mid-course adjustments in the technical Zhubo lower signal.

The insistence on this point of view for the May 30 this year, since the changes in the market is still valid. Despite the introduction of stamp duty to improve the policy, as well as rumors of other potential bad news, the market has indeed emerged in June volatility in the short term once appeared in 4335 points to 3404 points, the huge decline, but the average is still the order of each arrangement, technical the overall upward trend is not reversed.

In the high point of 4335, the market in the June 5 fell to 3404 points, rebound, forming seemingly "double-headed form." The stock market on July 6 3563-point rebound a second time, but also appears to form a major adjustment in the "double bottom patterns." Zhu Bo from a high point of analysis is lower, and from low-by-wave analysis is higher. In Dow Theory conflicting technical signals and eventually the market will undoubtedly only one option. Wait for the market hit a new high or low is a safe investment behavior. However, from the MA system to see, we must first bear in mind the trend is still no fundamental change this fact.

MA is a stable, but lags behind technical analysis tools to identify market trends in a timely manner if you want to sync conversion of Gann theory, the analysis point of view is worthy of investor attention. June 5 single-day reversal after the market on July 5 and 6 double-day reversal patterns reaffirmed the bottom of another form, in line with Gann time period a turning point in the calendar the beginning of the technical requirements of paragraphs, in particular, is July 5 and 6, and January 4 of the market, there is a high point of 180 degrees Gann time, I would like to insist on an upward trend in the market as a whole has not changed point of view. Short-term high hold-up is needed to avoid the risk, but low in Ta Kong is also a trap for investors to be alert.

Bull market bull trap phase

Since the May 30 to adjust the stamp duty has been in the investment market, there is a clear differentiation of species, have continued to hit new high, and it has continued to fall sharply. Needless to questions, different types of transactions is the texture itself, lead to different changes in the market price of the underlying causes, but technically there is a corresponding warning signal can be bullish for investors to avoid the trap stage to help.

I rough statistics of the May 30 to July 5 in Shanghai and Shenzhen Stock up or down between the range found in the decline of many of the top stocks in the existence of two K-line forms: tie clip Yin Yang Yang Xian, and 2. In the market is low, over a long period occurring after finishing tied for Yang Xian is a more accurate bullish signal, a long-term cost of transaction types from the region an important symbol. Parallel Yangxian that the main species in the previous session pulled the price of the transaction after the return to low-absorbing floor floating chips continued to rise soon after. However, any technical indicators are the conditions for its application in long-term low after finishing K-Line is a bullish pattern, when after a period of running, the same or similar form is bearish.

When the transaction prices of varieties over a period of time after a sharp rise, investors get the windfall profits of the transaction appears to adjust the basis of species. 5 Before the end of most of the stocks have gone through the month of consecutive 3,4 surged away from the long-term averages, although average system is still up, but the short-term adjustment is always going to happen. Yang Xian appear on individual stocks is no longer tied for low chips continue to clear up the main sign, but after a period of time, a continuous rise in the stock difficult to continue at a high level signal, generally accompanied by a dramatic drop in volume, is chase a high willingness to reduce the apparent signs; while the second is often the root Yang Xian (or entities in part) in the first root Yangxian fluctuations in area, with a bearish technical characteristics of breeding lines.

Yin and yang two folders side by side Yangxian much the same principle, it would have been a breakthrough low-up signal. But when the market for some time after unilateral upstream of the K-line shape but with a bearish technical meaning. In general, two yin yang clip (or running form two folders yin yang) form of short-term stock peaked chance of a new high is much larger than a tie for the formation of high Yangxian stocks. (Gao Xin)