Category: Money tips Release Date: 2007-04-13
Trumpet is a triangular deformation body, most of them appear in the top of the bearish pattern. Flared head and shoulders top is a deformation of the rise in stock price over a period of time after the fall and then rise to decline, the rise in high compared to the previous high, down low is lower than the previous low, that is, said that the completion of the left shoulder and head after the rebound in the right shoulder than head high when you create a new high.
Fluctuations in the patterns so as to narrow the beginning, and then up and down the two sides extended to the upper and lower highs and lows are connected together, we can draw a triangle shape of the mirror reflective, that is, the right shoulder of the head and shoulders high roof This is the nasty-nice of the horn.
Flared is because the investor sentiment caused by impulse, usually in the final stages of a long-term rise, it is a lack of reason and loss of control of the markets, investors face of a soaring by market speculation or rumors of infection. Investors have been operating has become conservative, and until the right shoulder after a record high in the market, a wave of voices advocating an extension, the mad chase again. But "setting sun is infinitely good, yet it is almost evening", when everyone is optimistic about the occasion, and the prices are always the opposite direction. Market impulses and chaotic action, causing the share price is not normally the roller to form a high-point rise compared to the previous high, back when the low is lower than the previous situation.
1, the standard high turning flared contains at least three points, two turns low. The three high a ratio of a high, two low in the horizontal position, or the right side on the left below the low of lows; when stock prices fell back from the third high-point of its decline over the previous low for a low is low, can be assumed that the establishment of patterns. The high points and low neckline to form their own after the two lines formed area looks like a trumpet, because it belongs to "five-point turn" form, is more gentle horn can also be regarded as a have a higher and lower right shoulder tilt the head and shoulders neckline.
2, flared shape the formation of the whole process, the volume kept high and irregular fluctuations. Flared investors emotional impulse and irrational result, the city rarely appears at the bottom in the fall because the stock price after a period of decline, the market is no popularity, in the low market sentiment, it is impossible to form such a pattern . Fluctuations in the rules rather than turnover, reflecting the sale of investment excited and unstable emotions, which is a precursor before the coming collapse of the market. Therefore, the flared shape for the fall, suggesting that upward trend will go to the end. The time of the liberation of Shaanxi to build a flared volume consistent with this rule.
3, flared drop rate can not be measured, that is no formula for at least a measure of decline in the estimated future losses, but in general, or will be deep. The speed of the right shoulder flared up at the same time though fast, but faster downlink Powei right shoulder, but the pattern did not clear that appeared in the city or time. Only when the lower limit below the shape can be determined when the investors in the profit or stop right away just out of the. Shaanxi after the liberation of the horn to build a rapid nosedive.
4 flared might also fail, they will break up, especially in the horn-shaped at the top by two points with the same level as high as, if the stock price in order to break up high-volume, then the show will still be in front of a rising trend continued. But for a firm conservative investors, "would rather miss can not be wrong", do not be too obsessed with the risk greater than the returns of the stock market, after all, constructing the flared head of the probability is great.
