Category: Money Tips Date: 2006-02-16
As of this week, a broader market once again close to 1000 points, there are complementary to each other form of triple bottom trend.
Triple bottom. Triple at the end of both the head and shoulder at the end of the variability patterns, but also W-shaped at the end of the composite form of triple bottom relative to the W-shaped bottom and head and shoulders bottom in terms of relatively rare, but the latter two are more solid than the bottom of the form, and shape the formation of strength is also stronger after the upside. Must await the establishment of its shape effectively break up only when the final confirmation bit neckline. Because, after triple bottom break neckline bit theoretical gains will be greater than or equal to a low neckline bit distance. Therefore, investors in place even in the form of intervention, there is still a large profit margins.
Triple bottom's analysis techniques:
Judged at the triple at the end of the process of the most notable points are: not based on triple bottom can be formed with three low, three-pin bottom of the form can only be said that the trend of stock prices have a triple bottom graphic prototype of the future development of extremely likely to triple at the end of the evolution, as to eventually be able to build into a triple bottom, and the formation of a rising market, the need for further examination. Set up in late triple confirmation criteria are:
1, triple bottom shape of the three low, usually at least maintained at 10 to 15 trading days or more, if the time interval is too small, often with only at the shock Quotes finishing in the bottom of the form to build a foundation is not solid, even if the formation of a triple bottom, because of its shape is too small, the intensity will be limited upside afternoon. And the recent triple bottom interval between the first and second low of 9 days interval between the second and third lowest for 11 days, just barely meet the standards.
2, triple at the end of the three upside Quotes, the volume should be showing a successive amplification of the state of affairs, or most likely rebound fail. If a large building in front of a double-dip in form when the two rising Quotes in the meantime, the volume still can not effectively enlarged, it will most likely lead to failure to build a triple-bottom patterns.
3, in the triple at the end of the last upside Quotes, if there is no active involvement in incremental funding of a big bang, would still be close enough. Therefore, the triple at the end of the last rise up through the neckline to be easy to place only when the final confirmation. The amount of stock to break through the neckline with a bit, in order to start a new one is expected to rise.
In practice, investors can not only see the three bottom moves, or from the surface to form a triple bottom on the wishful thinking that it is the triple bottom blindly buying, this is very dangerous. Because, sometimes even in the form of the trend on the completion of construction, but if you can not place the final volume, breaking the neckline, then the possibility of triple bottom is still close enough. As a long time to build a triple at the end of the bottom is more solid. Therefore, the breakthrough in the theory of post-neckline bit gains will be greater than or equal to a low neckline bit distance. Therefore, investors need to be patient and complete forms to build a complete triple-bottom share prices, after a successful break through the neckline bit is the best Jiancang time. No need of only three low and morphology have not yet finalized when early intervention, while it was possible to obtain more profits, but risk-benefit ratio calculation, but not worth the candle.
Triple at the end of the trading opportunities:
Triple at the end of the best buying opportunity and that is:
1. Neckline break the share price trend and the certainty of bit volume when accompanied by aggressive investors to buy time.
2. In the stock has been successfully break through the neckline is a bit mature when the time for investors to buy.
3. In the stock position has been effectively break through the neckline after the correction confirmation is a solid investor buying opportunity.
Investors to grasp the triple bottom in the right time to buy shares after the intervention, we need to know the best selling triple-bottom price. This requires analyzing triple at the end of the projected rise in intensity and approximate retail prices.
Triple bottom up efforts to
Triple bottom up efforts depends largely on the following factors:
1. Stock from the end of the third triple bottom rise, the turnover of whether sustained moderate to enlarge.
2. Neckline break up the share price when the volume is instantaneous bit quickly zoom.
3. Triple bottom low of the distance to the neckline bit. The farther the distance, shape of the upside after the formation of stronger intensity.
4. Stock price at the bottom of the circle, usually the stock price hovering at the bottom of the longer, the greater the intensity of its rising.
For example: Daxian 600,747 shares, respectively in 2003, March 27, April 9, April 29 the formation of three bottom a three-day process. Unit bottom three movements, on the time span between roughly equal, and the bottom three of the relatively low position of close to 6.23 yuan, 6.19 yuan, 6.25 yuan, 0.06 yuan gap between high and low of only complete triple bottom line with the basic technical requirements. In mid-May, Daxian share volume, breaking the neckline triple bottom position. Since then, a strong contrarian stock rose more than 100-point drop in the stock during the period, the stock actually rose 30%.
