Category: Money Tips Date: 2007-05-02
The following is to confirm at the bottom of several necessary conditions and operating principles:
First, do not expect the lowest point copy
Most investors believe that a rebound that is the bottom of buying time to worry about missing the next day can not be chasing a high, but rebound is a high-risk behavior, we recommend shareholders do not want to buy a minimum. Therefore, waiting for the bottom of the pattern has grown up a lot to buy in order to avoid being the lowest point in the decline in low stuck.
Second, do not base the amount of superstition
Rate of reduction the amount of shrinkage, as we all know, but can also shrink the amount contracted. So, should wait for the market index steadied after the third consecutive day on the 6th volume of Motion by all be confirmed.
Third, do not think the bottom is on the 1st
As the saying goes, "a three-day low-cost high price Hundred Days" is this reason, the general said at the end there are several forms, W at the end and the park is a more common arc at the end of the bottom, never try to steal the V-type, because at the end of the regular V-is a right shoulder, there will be a bid to trap the possibilities.
4, the bottom of the recognized standards of
Recognizing the bottom of the stage of the different considerations (in general must meet three main conditions for the bottom (and from three considerations.
Technical aspects of the three conditions:
A variety of technical indicators must be an upward trend line break down, due to a downward trend in the various stages of their lines are different. Generally subject to 25 average.
B from the morphological point of view, the previous low at the bottom will be the reference point. If there are several times in a year are in a rebound increase in the lowest position, then the location can be considered to be a medium-term bottom.
C In the KDJ, RSI has become a long line of the week, when ordered, the amount of the third consecutive day on the 6th were Xun Zeng.
â‘?technical
Technical line in the indicator have seriously fallen too far, the trend also appears conducive to multiple forms.
â‘?fundamentals
China's stock market has a general rule, that is, when the political and economic news is not always easy or difficult to clear up before the end of the year to tighten the money supply and the like, before the IPO and other sources can make the stock market fell further by a higher level, whereas up easy or difficult.
â‘?Other factors
Due to shortage of funds, combined with year draws to a close, a large number of organizations to prepare income payments back to the government, only to ship rallies, not entering pulled, making the whole market psychologically bearish. Making the "bottom" is a long-term building process.
