Category: Money Tips Date: 2006-11-25
Under the top of the normal forms, there is a single top, double top and multiple top, Under normal circumstances, if there is no sudden pressure on the fundamentals, single-top formation is unlikely. The multiple pairs of tops and top of the situation would be delighted common, because in a bull market, press the next, due to the impact of inertia of thinking, people always think that the stock will be in a very short period of time to resume its rally, another record high, also tend to think that to explore the bottom of each bounce is a sign of success, this psychological easily be used by the main market, the main left to the market also continues to another record high fantasy side pull side to withdraw, medium and small investors also continued to grab a rebound in the layers of food sets, bogged down. Therefore, we often say that the top is not a point, but a region, reason is obvious here.
So, the real top of the How to Identify? In Shanghai and Shenzhen stock market, at the top of the formation is always accompanied by two factors, one is the policy factors, one is technical factors. The former can easily lead to steep decline, while the latter was able to go back to step 3 to continue for a long time, people will look at the top of the power to understand and its destructiveness. Therefore, if these two factors combined inspection, at the top of the form on the glaringly obvious.
Adjust the characteristics of the stage is relatively easy to grasp, investors can generally find some of the indicators from the following stages at the top of the normal identification. First, Bollinger Bands under the tracks below. To use Bollinger Bands to read the tape, or stock selection is mainly based on Bollinger Bands indicator aperture size, based on openings became smaller and smaller for those who want to pay more attention to the disk. Because Bollinger Bands openings became smaller and smaller, indicating stock price up or down range became smaller and smaller, long the power is no longer powerful, short-term breakthrough disc will inevitably choose the direction of opening the smaller the disk of the mutation of the stronger; second fool index SAR issued a sell signal; 3 is 5-day moving average Sicha on the 10th and the puncture 25, MA MA 30 day MA, midline long Qu Dan; Fourth intraday rebound fatigue, MACD red line disappear, green head, at times when the hidden ; 5 is a short-term indicators of KDJ and RSI fell from a high to a passive state of near or even below 50; 6 after a period of market power is stronger than the seller forces the buyer's gains after the long weaker or only maintain the original purchasing power, to make gains ease, while the short-forces are strengthened, the final balance of power both at this time there is no ebb and flow of stock will remain stationary state. If the seller than the buyer power, the stock will drop may be only slowly began to change, decline is not obvious, but later by the short side full control of the initiative, the downtrend turn anxious at this time adjust the market will be coming, while the disk in this period of time will be significantly more than Yin Xian Yang Xian, and the weak trends in this area are also subject to volume support, at this time the performance of the multi-volume became smaller and smaller from left to right, indicating short-term market environment has changed, people tend to care, the operation appears on the conservative tendencies. (Look for points feel)
