Category: Money tips Release Date: 2006-11-19
1. Pattern analysis
The so-called finishing refers to the share price after a period of rapid changes, that is no longer move up and down within a certain region in a narrow range of changes, and so on before the time is ripe to continue the previous trend. This shows the pattern of the past trend patterns known as finishing. Symmetrical triangle which consists of a series of price changes, whose rate of change gradually reduced, but also that changes each time the highest price, lower than the previous standard, while the lowest is higher than the previous standard, showing a compressed graphics, such as the horizontal direction from the price changes in the field of view, its maximum downward slash, lower limit for the upward tilt line, short-term high and low points, respectively, in a straight line connecting together, we can form a very symmetrical triangles. Symmetrical triangle volume, because more and more minor changes in share price decline, and then when the stock price suddenly jump out of the triangle, the resulting larger volume.
2. The market is because the meaning of symmetrical triangle in which the power of buyers and sellers price parity within the region, temporarily formed to achieve a state of equilibrium. Shares from the first a short-term highs, but they are quickly digested by the buyer to promote the recovery in prices; but the power to buy the market outlook is not much confidence, or feel a bit hesitant about the future, so could not pick-up in stock prices to the last high point has now been turned around once again declined. In the fall of the stage, those selling investors reluctant to be too low or the prospect of cheap sale still have hope, so the pressure drop is not strong, the stock fell to a low not already picked up the previous low, buyers and sellers The wait of contention so that the small fluctuations in stock prices has been narrowing from top to bottom, forming a pattern here.
Volume in the symmetrical triangle formation process in the steady decline reflects the forces of good short afternoon hesitant wait and see attitude, making the market being produced. Under normal circumstances, symmetrical triangle pattern are finishing, that stock prices will continue the trend of the original movement. Only one significant breakthrough in mid-term stock price move before the sale can take appropriate action. If the stock price up broken resistance (with the volume must be large), is a short-term buy signal; the other hand if down below (below the break in a low volume), is a short-term sell signal.
3. Points to Note
(1) a symmetrical triangle formation, there must be a clear two short-term and short-term low appears high.
(2) changes in the more symmetrical triangle price close to its peak and has failed to break the line, its strength decreases, if too close to the peak of the breakthrough that failure. Usually in the bottom half or three quarters away from the triangle at a breakthrough will produce the most accurate movement.
(3) require large volume accompanied by break up, break down is not necessary.
