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Data:2009-12-12 2:34
"Trend is your friend", "the flow of" These are all the proverbial note the importance of grasping the trend. How to correctly understand the trends, and based on trends and identify the right investment strategy? Recognizing the trend, firstly, a dialectical point of view, both the opening price, highest price, lowest price, or even closing price, are simply the price of a long campaign in a part of, rather than an end point, a certain price may be a trend end, but not all the end of the trend, as long as the market exists, the price will never be doped in the trend, constantly changing. When an upward trend of development, marked by the highest price on the rise, and guide at the same time the structure of low and closing prices on the rise. The highest price is rising, said the majority of traders (or holding a large volume of a small number of traders) agrees that the direction of price movement, are willing to bid a higher price than at present of such commodities (stock), this tendency Xing has been continuously extended, until the traders think that prices are too high, so far unwilling to continue pursuit.
Secondly, we can make the appropriate division of the trend. The trend of artificially divided into simple and complex trends of the trend, this distinction does not affect the changes in the market, but is more convenient for us to judge the overall trend. Simple trends include an upward trend in a simple and simple downward trend. Simple upward trend: from a series of adjacent or near the K-line components, which K-line has been the highest price increase. "Adjacent" means no more than two. Simple downward trend: from a series of adjacent or near the K-line components, which have a declining K-line lowest price, "adjacent" means no more than two.
Complex trend has also been an upward trend of complex and complicated decline. An upward trend in the complex: from simple reverse the trend of two or more, of which simply must be greater than the length of the upward trend with its downward trend in the back of the adjacent simple; if the trend is that many simple composition is responsible for reverse trend, then an upward trend in each of a simple The length must be greater than a simple decline followed her. Complex downward trend: from a simple two or more reverse the trend, of which the length of a simple decline must be greater than with its upward trend in the back of the adjacent simple; if it is composed of many simple trend is responsible for reverse trend, then every one a simple decline The length must be greater than a simple upward trend in her back.
Trends pause: pause, said the price is neither a simple trend in the rise of simple, nor is a simple downward trend; complex stalled, said the trend is neither a simple trend in the rise in complex, nor is a complex decline.
Obviously, if it is buying transaction, it should be in such market conditions, be considered:
1. Market is an upward trend in the complex (the long-term transactions);
2. Market is a simple upward trend (the short-term transactions);
3. Tendency pause a larger range, the price floor in the area (the band sideways trading);
4. The price break the trend stalled limit (chase).
These are the restrictive conditions of purchase transactions is a matter of principle. Only this, it can make you're always in a favorable market position. If you are able to comply with these principles, to identify the market potential reversal point, and some other transactions in accordance with the principle of trading, then you can easily achieve the purpose of long-term stable earnings.
