Category: Money Tips Date: 2006-03-30
Quotes in the technical analysis, the golden section line and the percentage of the more commonly used line is an analytical tool, its main role is to use the golden section and the percentage rate of pre-given stock or stocks of the support or pressure bit in order to facilitate, where possible, is close to the goal well ahead of operational preparation.
Golden Section line and the percentage of lines similar to the analysis of the basic principles of the two differ only because the rate quoted by different, but in the same rates, or units within the analysis, which revealed the location of the critical point position was basically the same, Therefore, in practical applications, the two are substitutes for one another use.
Fibonacci golden ratio line is to use the principle of the Quotes for analysis, and so gives the location of the corresponding tangent. Golden principles derived from Fubonaqi series, known as the golden section ratio of 0.618 is the number of columns in the adjacent Fubonaqi the ratio of two values, while the projected out of 0.191,0.382,0.809, etc. Accordingly, the ratio of the more important . Among them, the most commonly used golden ratio 0.382,0.618, this applied to the stock market of the stock market analysis, can be interpreted as the ratio of the corresponding positions in general prone to strong support and pressure. In an intermediate Quotes after the end of the trend of stock or stock in the opposite direction to the previous campaign, when either by rise or fall into decline by the rise to all can be in the most recent trends in Quotes important high points and low inflation between the decline in the interval for analysis the scope of the original Up decline by 0.191,0.382,0.50,0.618,0.809 divided into five golden section point, the stock will likely reverse in the Quotes of these golden section point of the resistance encountered by a temporary or support.
Line is the use of the percentage rate of the percentage of the principle of the analysis will enable the stock go up or down the process of previous more intuitive. The percentage of line is the last time Quotes in the important high points and low inflation fell by between 1 / 8, 2 / 8, 1 / 3, 3 / 8, 4 / 8, 5 / 8, 2 / 3, 6 / 8,7 / 8,8 / 8, the ratio of the percentage of lines is generated. In various ratios, 4 / 8, the most important, 1 / 3, 3 / 8 and 5 / 8, 2 / 3 4 closer to the ratio of the distance is also important, often played an important role in support and pressure spaces. In fact, the percentage of line 5 position and the location of Fibonacci lines essentially overlap with each other, or close.
In the application of the golden section line and the percentage of lines needed to be noted that: For the golden section line, the most important of the two lines for 0.382 and 0.618. 0.382 in the rally in a rebound goal for the disadvantaged position of bit positions for a strong rebound in 0.618 target. In the callback process, if the strong callback, then there should be stronger at 0.382 line support. If the weak callback, 0.618 Line Service is the strong support level.
For example, certain Quotes correction bits can be supported by the following formula:
Support for a certain period of correction bits = Quotes Quotes certain high - (high point of a certain period of Quotes - Quotes lowest point in a certain period) รท 0.382 (or 0.618).
For the percentage of lines, the most important thing is 1 / 2, 1 / 3, 3 / 8, 5 / 8 and 2 / 3, which a few lines with strong support and pressure. However, as the golden section line and the percentage of lines without taking into account time-varying effects on stock prices, which reveals a bit more support level and pressure fixed. Therefore, if the index or stock price at the top or bottom of the sideways run too long, its reference to the role of the Yaoda a discount.
