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Data:2009-12-12 2:34
Head and shoulders at the end of the form and shape of the top of the head and shoulder, as is only just reversed form is the most common and more reliable reversal patterns. Both have similar characteristics to have meaning, only head and shoulders top in the market the top of the head and shoulders bottom in the market at the bottom.
Mechanism
In the bear market, look at the strength of short air under constant pressure with record low stock prices, there will certainly increase turnover, as there is already a certain degree of decline in the stock of short-term rebound, but rebounded when the volume is not the appropriate amplification, the initiative to buy plate is not strong, the downward trend line form is also subject to repression, which formed a "left shoulder"; followed by a further incremental shares fell below the left shoulder and the lowest point, then as the price continued to drop compared to the volume and left shoulder decrease, indicating power has been reduced down after stock rebound, rebound phase volume larger than the left shoulder, breaking the downward trend line, form a "head"; when stock prices rebound back up to the left shoulder near the high point, a third the fall, when the turnover is significantly lower than his left shoulder and head, the stock fell back to a low level near the left shoulder, the downtrend will be basically stabilized form a "right shoulder"; the last official to launch a stock rally, with the turnover of a substantial increase in the effective resistance profile breakthrough neckline turnover is increased significantly, the entire pattern has been completed. The coming wave of a larger rally.
Features Conditions
1, head and shoulders bottom patterns there must be three low-peak point, and the head was significantly lower than the shoulders of the lows. Left shoulder and right shoulder low position roughly equal, the general left shoulder and right shoulder slightly lower than low, but certainly lower than the left shoulder and right shoulder low rebound high.
2, volume was V-shaped or head and shoulders top state distribution, and sometimes three parts roughly the same, but the neckline breakthrough necessarily require a large volume of cooperation. Otherwise, they may be a false break. However, if, after a breakthrough deal in a gradual increase in effectiveness can be confirmed.
3, neckline breakthrough time standard for more than three days, floor space of more than 3% of market value neckline. When the neckline break, we can head up stipple a vertical line to the neckline, and then complete the right shoulder neckline break point start up the same length of the planning based on expenditure, thus the price of spatial planning based on expenditure is that the Unit will the theoretical increase in the minimum increase.
4, after breaking through the neckline may appear a temporary fall again, but fell back below the neckline should be low. If you fell back below the neckline, and even dropped below the head, this is the end of a failed head and shoulders pattern, even if the afternoon rally and will not complete the theory of minimal increases.
Operation Strategy
Shares rose from the head, breaking a downward trend in the current round of sub-line for the first selling points; break neckline for the second selling points, that is very important in this form to buy out the signal, although the share price and the lowest point of comparison, the rate has risen considerably, but the rise Potential is just the beginning, not daring investors purchase buy; if effectively break the neckline, the share price fall as opportunities arise, withdraw sword for the third time to confirm neckline and effective selling points, this is the best buying opportunity for long last.
Often appear in the actual standards are not perfect-shaped head and shoulders top and bottom, which we call complex Head and Shoulders, often divided into a shoulders-shaped, over one shoulder and the long-shape multi-shaped shoulder. Complex Head and Shoulders, after breaking the trend will be repeated, usually trend also weaker than the standard-shaped head and shoulders, the general complex-shaped after the completion of the theory is not the amount of increase continues, instead of the standard-shaped head and shoulders up the general decline of more than theoretical. Complex-shaped head and shoulders with the less amount of rules, the neckline is also no standard method of painting, the sale of points can be a reference standard head-shoulder shape.
