Category: Money Tips Date: 2006-09-01
Rectangular finishing up the analysis of the meaning and the same triangles, but each stock bottom at the same level when they receive support, rather than as a triangle, as low and gradually move up.
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/ / / / ------- Pressure line
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/ / / / ------- Support line /
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/ Figure 4: Breaking the rectangular
Rectangular boxes are often the people into the stock, meaning that stock prices seem to have been kept in a box, covered above, the following bottom line beyond which the stock back and forth between two layers of plywood campaign. If this back and forth movement with a certain regularity, namely, when the volume increased by amplification, declining volume reduced, and as time goes on, trading volume as a whole showed a narrowing trend, then this rectangle is more reliable.
Rectangles are often forced Xi Pan in the main body formed under, and above the level of resistance line is the main pre-Xi Pan position, the bottom line is to support the market the level of support for the bottom line, in the disk, we can sometimes see the occasional stock below support, but quickly returned to above the support line, this may be the main way to test the market psychology. If a major support level below, the market is not further decline, which fully shows that the market sell-off have been exhausted, can not afford to fall further.
Rectangle has a measurable increase, that is, after the break up when the rectangular, the minimum to rise to the height of the rectangle itself so much. This is a classic measure of growth theory, it is in our stock market how much credibility remains to be seen. But one thing is certain, that a large rectangular shape is much more reliable than the smaller. shares in the stock box back and forth oscillation frequency may be much or as little, and it depends on market needs. The more the frequency of oscillation, indicating Floating market, the more thorough cleaning yards, but remember, the end of oscillation must be accompanied by volume contraction. In actual combat, complete the standard rectangle is not common, stock movements, often in order to change the last paragraph, not and then with a large amplitude, but gradually died down, unable to meet the high point of the last high point, while the low is slightly higher than the previous low point, evolved into the flag. This deformation pattern is more credible than the standard rectangular, because the form at the end illustrate how the market has clearly demonstrated its will, it is clear order has reached the end of the direction of the forthcoming selection. Thus, the real breakthrough occurred in the neckline position is not necessarily true master to read the tape without waiting for a breakthrough neckline before purchase. Of course, this requires more careful technique to read the tape.
Characteristics of the rectangle are as follows:
1: The consolidation of a long time.
2: The upward pressure on lines parallel to the support line.
3: Breaking the resistance must be accompanied by a large volume.
4: The longer the consolidation period, the greater the future of the stock market after the break.
Up to this, we have introduced four more reliable guaranteed profits, graphics, from the morphological analysis point of view, they include two patterns and two at the top of the bottom of the form. As the contents of profound morphological analysis, where not all in-depth introduction, but I have another monograph there is a thorough analysis. For a full taste of the Essentials of morphological analysis to investors, form the graph itself is not important, important thing in graphics outside of the market Straddle the two sides balance of power in the market sentiment, while the graphical appearance of the state but the market only. Therefore, the intelligent and incisive grasp the morphological analysis, we can basically grasp the peculiar logic of the market, we can do 'a ruler open a new world '.
Edited in the gold-line
