Category: Money tips Release Date: 2006-08-21
Volume on the status of the theory of Magic Mountain has always been supportive, and it can not serve as a basis for direct decision-making, many people think that we intend to snub volume indicators, such thinking is wrong. Magic Mountain is the speculative theory of the pursuit of efficiency, if the target volume can improve the efficiency of our speculation, why do not we put it in our toolbox Government? On the contrary, if it does not give us the efficiency, why should we use it? î—?/span>
See, this is the performance of volume, the price dropped to 1311 points in the performance of the day before in its turnover and prices hit a new low, prices have continued to record low the next day, when there is turnover The pick-up at this time whether we can be judged according to its broader market saw a reversal of it? If this feature represents a major turning point in the broader market characteristics, then see Figure 2 gave a completely opposite statements, where prices hit a new low turnover, and there was no rebound. On the contrary when the prices continued upward, when transactions are further shrinking, until the price through the traditional form of W at the end of the neckline, a rapid deal before amplification. î—?î—?/span>
Volume has inherent lag, do not believe the amount of the price of the first of the noisy. Must be clear that the volume is the price of "derivatives", the market price of capital is sought after - the formation of bidding or auction-driven price fluctuations, rather than the pursuit of volume, so volume is the primary screening of the efficacy of the market capacity, and market liquidity. In addition, it has verified the validity of some turning point, there are some effects, but this effect in the end how much, we do not fundamentally be identified. î—?/span>
Nevertheless, we are still pleased to see a number of facts, these facts give us some clues, but the cautious optimism in front of the word should be added. î—?/span>
Inflection point occurs at a time, then the inflection point of the base date, tend to shrink volume. The past 10 years we have adopted a number of important turning point in the broader market study found that such a situation occurs frequently, its probability of above 80%. î—?î—?/span>
This illustrates that when the turning point comes when the market sentiment is extremely weak, the market, the majority of people harbor colic, who at this time on the market formed a consistent view of this pessimistic sentiment in the wanton spread of the continue to deal blows with each participant, and these participants in the market's performance is the passive "refusal to deal," which is the reason for low turnover. But once the market has been a turn, people's eyes will immediately be attracted. Not prepared to be surprised people would be concerned about, will wait and see. Experienced people, will immediately intervene and professional traders will be moving the whole warehouse. Such prices will continue to rise, until the wait and see who the person involved in the whole warehouse out, and stay on the chart is the turning point away from the enlarged volume and prices.
