Category: Money tips Release Date: 2006-07-25
"Bull trap" is making use of funds, messages or other means of technical manipulation of the chart patterns to make it appear a long array of signals, to induce investors to buy.
Identification "bull trap" need a certain amount of market experience, be able to disk signal and fundamental analysis and macroeconomic policy changes combined together to determine. Make a few points here to avoid "bull trap" approach.
(1) From a graphic analysis of Makers of holding the state. Making the process of accumulation always try to do quietly. When a stock price hovering at a relatively low-cost, while the volume gradually to enlarge the dealer when you have the possibility of accumulation. Dealer selling to buy fewer and more repeated operations, until the hands of the accumulation of chips to a predetermined target. Sometimes a number of bookmakers robbed plate Kong Pan, intraday prices fluctuate up and down in order to absorb the chips, and lower ownership costs. If the stock price has been rising, appeared in the high volume amplification, intraday price shocks of the ups and downs, the dealer will have a very strong shipments of. At this point if the technical indicators again arranged long in the K-line diagram display with pull-Yang Xian, investors must be careful, there may be "bull trap." Therefore, to observe the disk should be further changes, rather than rush to grab into the purchase of shares.
(2) to stay a certain time and space judged indicators. Makers of funding, news and other means to manipulate the display of technical indicators, to cover up their true purpose, fundamentally speaking, is a contrarian and for, the cost is high. Therefore, the dealer can only be ordered in a moment to make a bullish technical indicator. Investors to read the tape, not only to look at 5-minute line, 15-minute line, and it depends on-line, especially the weekly and monthly line. Common makers to set a "bull trap" line in Japan in general, but we can be found on the weekly chart sell signal. In addition, we can also power surges OBV chart the changes in trading volume tends to observe the intent of the current banker. In particular the OBV chart shows sell signal and K-line diagram of the contradiction between the short-term buy signal, the "bull trap" plot will be exposed in broad daylight. Of course, we can also use some other method of technical analysis to identify the authenticity of long arranged.
Need to remind investors that each technical analysis method has its blind spots, but also has its sensitive with it and we can only repeatedly verify the authenticity of the ability to gradually grasp the distinction. Secondly, when the number of technical indicators show the same signal, they can support each other when the judge the accuracy of the relatively high.
