Category: Money Tips Date: 2007-06-15
Shares continued to rise after a period of time, a day when the gap of gapped accelerated, but then stock prices hovering at a high level, and soon had to downward price gaps in the form of gapped down, and this gap and rising down gapped upward gap, basically at the same price level of the region near the position, so that high points of contention region in the K line of the chart appears, like an island away from the coast, the shape of the gap in left and right sides to make this island stand in isolation, oceans above the This is the top of the island reversal patterns; continued to decline in the share price will appear during the island reversal pattern, the stock price continued to decline after a period of time, a surprise Tiaokongdikai leaving a reduced gap shares continue to sink the next few days, but the stock fell to a low of suddenly took a dramatic turn, the stock gapped up the sharp rebound in the beginning, it gapped up the gap with the pre-gapped down gap, the basic price at the same horizontal position the region near the so that the regional low points of contention in the K line of the chart appears, like an island away from the coast, the shape of the gap in left and right sides to make it stand in isolation, oceans above the island, which is at the bottom of the island-shaped reversal pattern.
Formation mechanism:
Continuous rise in stock prices, so that the original investors want to buy low can not eat at a predetermined price, continuing the upward trend of this group of investors, the pain unbearable Ta Kong, and finally could not help but do not grab into the pricing bit, Thus the formation of a rising gap, but did not because of this stock continue its rapid upward, at a high level visibly heavy volume stagflation sideways, indicating at this time secretly has a huge sell-off, after a short contention, the main force, and foresight massive exodus of the institutions, the stock eventually could not at a high level support, once the fall triggered the collapse of confidence in the market of a gap down gap on lock-down a lot of chips, the stock began a long decline; share price continued to decline continuously after the and finally formed the bottom of the island type of market rally when the meaning and the formation of the top of the same principle. Island-shaped pattern often appears in the long-term or medium-term trends in the top or bottom, indicating a reversal of the trend.
Morphology:
1) The island-shaped rise in consumption of the left gap down the right side of a breakthrough for the gap, the gap is a gap to fill these two gaps appear in a very short period of time, indicating sentiment Feature obvious;
2) High-shaped top of the island is generally a relatively flat area, with both sides of the steep sharp contrast to the graphic, and sometimes the top is just one trading day with the amount of days the composition of the market which is a product of extreme emotional, its top of the Start volume was decreasing shape, and form the left side of transit traffic volume;
3) the bottom of the island reversal often accompanied with the high turnover, if the volume is small, the bottom of the island reversal difficult to set up;
Operation Strategy:
Island-shaped form of the best trading points fall below the rising trend line and the second gap occurred, because this can not be determined prior to development.
