Category: Money tips Release Date: 2007-04-19
Trends in market structure in the theory of law and stop turning point rules are based on market and technology stocks judged detailed operational rules, is judged band turnaround in the trend reversal point of the important points or technical principles, involving the sale of a specific point of trading decisions.
Trends pause law states: "The trend in the same band operation with fluency, once a run-pause, that is, to adjust or reverse the trend of the first signal."
Indicator-based technical regulations primarily through the target curve Jin Cha and Sicha and other related types of signals to determine a band turnaround point (or a reversal point). Its essence is to target technologies through the statistical comparison of theory and technical state to determine the trend changes.
Trends and indicators Law pause the ultimate goal of the same technologies. Only the methods and techniques used in a completely different perspective. It can be said, the market structure theory point of the micro-turn than the average indicators judged to be sensitive and effective technologies. This conclusion is entirely due to their respective technical principles are completely different decision.
We believe that the law halted the trend appears to be simple and very easy to understand. But the market structure theory to it as an important law of the market to point out that the rules in order to deduce a turning point, there is a profound implication of the technology.
The basic principle of the law halted the trend what is it? "The market structure theory," carried out the following description:
Run follows the trend of balance laws, reflected in the trend presented by the pursuit of a balanced uniform rhythm of running. This is also the trend of inertia manifestations. Trends in the performance of the balance of running the smooth running of the trend. The trend is running smoothly and concrete were as follows: continuous, uniform, continuous and stable trends in sports.
In accordance with market rules and trends in the balance of speed laws, the trend in the running process will show a shift state. This speed change is the market out of balance performance. Speed of change in the trend has two main forms: Trends acceleration and deceleration trend.
The original trend continued to accelerate the trend of a strong signal, while the trend of slowdown is a sign of the trend adjustment or reversal. The same band the trend is the trend of deceleration stop running, which means that the trend of band adjustment or reversal.
Halt the trend of technical points of law includes the following four aspects:
(1) the continuity of the operation of the same band is characterized by the trend: the trend-band operation has arranged with the state to the K-line. K-line arranged in the same direction and trends in the direction of motion refers to the same K-line arrangement. K-line arrangement can be divided into long and short K-line arrangement. It is worth noting is that different trends in the direction of K-line arrangement of the basic principles of law from the long-short structure.
(2) When ordered with the side of the K-line pause signs of improvement, the trend means that the band is running a standstill. Must be pointed out, sort of K-line is also a warning signal the trend is running a standstill. In addition, the flat top or flat-type K-line also belongs to order of K-line arrangement. These are the trends in the type of K-line K-line arrangement to run the stop sign shown.
(3) The trend stalled the trend of law is the same band tracking technology, only one band with the effect. The smooth running of major trends reflected in the tendency to run into the same band. A trend in the trend of band is a complete running unit. When the band at the end of a trend, the trend will start a new trend-band operation.
(4) The trend stalled law applies to all the analysis of the trend-cycle tracking. For any analysis of cycles and trends are fully embodied in the law halted the trend adjustment and a sign of changing its stance. K-line from 1 minute to years of K-line, the trend stalled law are appropriate.
At the same time, the market structure theory of the law halted the trend has made the following deduction:
(1) The trend in the law halted the trend to track, one of the core technology, it is a turnaround point effectively determine the band an important technical means.
(2) the use of the trend pause to track trends in the law carried out in isolation is meaningless, and must be integrated with technologies related to the structure to determine a comprehensive turnaround point of the establishment.
(3) When the market structure analysis to specify the potential for temporary, the trend signals from a standstill is this turnaround in the performance of the clearest.
(4) the trend stalled in the whole band structure, the location of critical-band midway pause and stop-band at the end of the technology with a completely different meaning.
(5) must be taken: Trends stop performance adjustments or changing its stance. The turnaround in the adjustment or the judge is not a trend in the ability to pause the scope of the law.
(6) In the critical position of band-type K appear finishing line, is also an important signal of the trend stalled.
The above rules, albeit a mouthful, but it is worth studying and understanding.
