Category: Money tips Release Date: 2007-01-19
V-shaped or V-shaped top end of the most difficult of all reversal patterns as a judge. In most reverse, there are signs of slowing down the existing trend, and only V-shaped reversal is an exception. It appears little sign, just like a rubber band pulled too long, suddenly a strong bounce back. Such patterns occur, tend to form a key reversal day or island reversal.
Moderator: Speaking of December 28, 1999, I believe that many investors are remembered. In this day, the Shenzhen and Shanghai stock market the well-known V-shaped reversal, this as a starting point, the Shanghai Composite climbed onto a 2245-point record high. We invite senior members of Mr. Zhang Hongji securities to describe this well-known reversal pattern.
Tongzhou District of Beijing shareholders Liu: V-shaped reversal How's that?
Zhang remember: V-shaped reversal mainly in the long-term trends in the end, policy-oriented in the Mainland stock market, it is often accompanied by significant good or bad there. In its form, the market continued movement towards a certain direction, or only a few minor adjustments along the way, preferably several times during re-gapped gap. At this time, the operation of the market has exceeded most people's normal expectations, but even the most experienced investors have continued to decline because of despair. Suddenly, the market, there have been some major events, such as the relevant policies, industry information, or major changes in a company's affairs, so that the direction of dramatic price reversal. This situation occurs, market participants will quickly take appropriate action, in turn, further exacerbated market volatility, an objective to accelerate the reversal of the velocity (increasingly steep slope). Thus, V-shaped reversal occur, changes in price extremely rapidly, and it is running away from the future is unpredictable.
Haidian District, Beijing shareholders Chen: how to determine the V-shaped reversal, how to choose the time to intervene?
Zhang Q: Usually, V-shaped reversal generally occurs without prior symptoms, but some signs of investors or in advance from the grasp the V-shaped reversal. I have just said, V-shaped inversion occurred mainly in the medium to long term Quotes to December 28, 1999 the V-shaped reversal, for example, when market sentiment is extremely low, stocks in the month before reversal, the index with close Zhang Yin, and the next along the channel below the drop. Then, in management's favorable policy incentives introduced under the long-short market, brought about an unprecedented view of the consensus, so that tape out of V-shaped reversal.
