Immeasurable opportunities and risks at the end of departure from the duo Money Tips

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

The departure from the shape analyzing technical indicators are also indicators for the analysis of one of the methods usually applied to those who can according to the relative position to judge the level of stock is in overbought or oversold condition indicators analyzed. For instance, we commonly used KDJ, RSI and other indicators, values generally vary between 0-100, and sometimes through the analysis of indicators of the relative value of shares can also determine the status of short-term trend, which we call the relative value of indicators of indicators.

KDJ, RSI and other indicators of the relative values and stock prices are usually synchronous changes in the relative positions of the high and low, this is a normal situation, but when the stock price in the high or low, the index sent the opposite signal trend, which is what we usually refer to the top of departure from the and at the end of departure. Specifically, at a high level, the stock hit a new high again, but the relative value of target had been turned around and down or not synchronized to new heights, and this is top of departure; in low, the stock hit another new low, but the relative value of index have been U-turn up or did not sync new lows, and this is the end of departure. Top deviate from that stock has been overbought, adjustment may come, but at the end of that stock has been deviated from the oversold bounce may occur.

Departure is a more important indicator patterns, often in the analysis to give us great help. Because of various indicators had time parameter settings, different time parameters are not the same shape as an indicator, so we do target analysis must pay attention to the distinction between time parameters, different time parameters on the operation of guiding significance to the different. For example, if the issue is that the short-term parameter index rising signal, and long-term parameter index is sent down the signal, then the stock is likely to be short-term rebound, while still running in the long-term downward trend.

Shanghai stock index is very worthy of the recent research, and its key short-term indicators of the relative values are issued at the end of the recent departure from the signal. If we KDJ parameter is set to 45, RSI parameter is set to 25 (which is relatively large number of parameters is to ignore the crushing shock better, in fact, the argument can also be set smaller), you will find the relative values of these indicators in 10 14 broad market dip, the basic 1509 point has bottomed out, while in the October 18 tape bottom 1500 points, October 29 broad market dip, 1488 points, indexes continue to new lows, but the technical indicators are no longer continue to decline , there is a clear departure from the bottom. Here the time parameter is 45 and 25, as long as less than this time parameter, at the end of the phenomenon of departure from the more obvious.

Short-term technical indicators appear at the end of the phenomenon of divergence, indicating a technical perspective there are short-term rebound in stock requirements, but the broader market trend is the continued weakness of the real, How can this be explained? Note that the relative value of the above mentioned indicators are not considered volume element, while the volume reflects the strength of market sentiment and capital clearly can be seen, and each time the rally the market turnover has continued to downturn, which is from a technical point of view can not be reversed. On the one hand short-term technical indicators in the departure from the state and a rebound in demand, on the other market transactions, remains in the doldrums, this time should be how to operate it?

There is a problem to be noted that the so-called departure means the stock or stock hit a new low or new high of technical indicators over the same period of relative changes in circumstances Liangnengbuzu appear at the end of departure, the market characteristics are often reflected in a record time for each low commence immediately after the market rebounded, but the rebound weaker than the intensity of time and space. Therefore, investors in short-term operation at this time leaving room for only one: The stock hit a new low after each, can be involved in doing short-covering, but the rebound was not much room to do short-term must be resolute.

Another issue to draw attention, although the emergence of short-term indicators of deviation from the long-term indicators are weak, if the same parameters used in the weeks KDJ indicator K-line diagram (equal to period to expand five-fold), you will find now is a top - departure from the form, while the same parameters used in the weekly RSI indicator K-line map, issued by the weak signal, indicating short-term technical rebound despite demands, but long-term trends are not encouraging.

If we make a conclusion: the end of immeasurable departure from the most appropriate form of action is to see the end of a low copy a short-term operation, then the tape to determine whether the band really started rebound, depending on volume changes, when the amount of amplification can have an effective it means the beginning of a rebound, this time may be appropriately extended operating cycle.