Category: Money tips Release Date: 2007-04-14
Having a development process, organize market information kinds of ready process, when the finishing Quotes end of the market will choose the direction of a breakthrough, but a breakthrough in the direction of sideways a large extent depends on the formation of sideways Quotes situation.
Sideways market information formed by the following three conditions:
The formation of sideways down Quotes
Convergence of sideways triangle formed by
Rally formed by sideways
Quotes break sideways direction judgments techniques:
Sideways is often the prelude to change disks, in particular the process of price decline after a certain post-sideways, it is easy to form the bottom of the stage, fell sideways Quotes Quotes formed at the end of break up the vast majority of cases will be selected This probability greater. Among them, the stock market can often reverse the formation of short-term rates, or very intensity of the rally.
Convergence because of its triangular shape is characterized by continuous high up Down, down low of continually rising. This pattern usually indicates the relative lack of investor confidence and the mentality tends to shrink and investment behavior of more cautious, wait and see the psychological upper hand. In most cases, this pattern will continue into the original breakthrough in the direction of the trend of choice, and only a quarter of the probability of the trend will turn into runs contrary to the original trend.
Rally formed sideways is the collation of the most complex market, its final choice of direction has a considerable uncertainty, must be based on volume and price characteristics, combined with technical analysis by means of specific judgments.
The current sideways trend is born after the rally, then pay close attention to volume changes. Typically increase after the sideways Quotes of the volume is in contraction, if the volume shrinkage is not obvious or turnover larger signs, often with some of the main funds of which are flight, most likely peaked fall afternoon. If the volume is rapidly shrinking, indicating short kinetic energy is not strong, when the sideways Quotes the end of the afternoon there are still opportunities for further increases.
In addition, the rising trend sideways after the duration of 5 to 15 days, it is possible to form upward trend break. However, if sideways too long, the smaller the possibility of breaking up. The sideways trend in the near future, the volume no obvious atrophy, and sideways too long, this situation is not optimistic that the market outlook Quotes.
