Category: Money tips Release Date: 2006-07-16
"Wedge" finishing is generally the same direction from the two tilt the composition of each line of convergence, namely, stock price changes constitute the upper and lower limits, upper and lower limits of the intersection of which is called the endpoint. Wedge-shaped formation is short-term adjustment patterns, usually divided into wedge-shaped rising and falling wedge. In general, the wedge-shaped tilt the existing trend in the opposite direction.
Moderator: "wedge" order can be seen as a triangle or a flag-shaped patterns of variation order. Recently, there are a lot of readers asked how to grasp this type of sale and purchase points. This issue, we invited Mr. Zhang Hongji to introduce the use of its skills.
â–?shareholders Haidian District, Beijing Mr. Zhao: Wedge How's that?
Zhang Q: In theory, the "wedge" posture can be a clear indication of long-short two changes in force as a whole. To rise in wedge-shaped, for example, stock prices rise, selling pressure has not increased correspondingly, but the investor's interest has gradually going down, while stock prices rose, but every time a new rise in volatility as compared with the previous weak and finally disappear completely when the demand for when their share prices will fall again reversed. Therefore, the increase in wedge-shaped, said that a technical sense of the situation gradually weakened. In general, the increase in wedge often fall rebound stages of the city belonging to order form, shows the current stock price has not yet bottomed out, increase in wedge-shaped appearance, showing only a technical rebound after last fall, when its floor below, it was time sell signals .
â–?Liu Chaoyang District, Beijing shareholders: it is with triangle-shaped flag What's the difference?
Zhang note: In the technical sense, this is the same three kinds of graphics, they are running on behalf of stock in a certain direction encountered in the process of resistance to the anti side, but eventually win, the stock continues along the original direction. Time span from the point of view, than the size of the triangle finishing with experienced long periods of time, indicating the original direction of the forces are not dominant, take a long time the athletic field to a winner; from the trend point of view, wedge-shaped organize resistance forces had not flag a powerful, but the original direction of forces still need to spend time with the flag to win the same, indicating the original direction of the forces have been weak, with limited space for afternoon runs.
I personally believe that in these three forms, the wedge is a kind of weak intensity.
â–?Liu Chaoyang District, Beijing investors: how to find its points of sale?
Zhang note: This requires a concrete analysis of the actual situation, investors need to pay close attention to volume, timing and other factors. Usually within a wedge-shaped volume pattern is decreasing from left to right, and the shrinking fast. Similarly, the wedge-shaped finishing time not too long, generally 8 to 15 days, too long, then, form strength will disappear, but also may result in the pattern of price reversal.
In operation, an increase in the wedge below the minimum support, it frequently appears plunge, so when the lower limit below, investors should be a timely follow-up; decline in wedge-shaped break up the resistance, it was very likely to evolve into a horizontal development to form a wandering state, turnover is still very low, and then slowly climb turnover will also increase. For this situation, we can wait for price to break the stagnant situation and then properly followed up.
