Data:2009-12-12 2:34
Category: Money tips Release Date: 2006-07-29
Change is a measure of the speed of technological tools, are short-term indicators. The theoretical basis of the relationship between price and quantity of supply and demand, in a free market economy, demand is greater than the supply makes prices rise, but prices also likely to suppliers to increase production or to persons in need to find substitutes, and so they force the price of down. Stock price up or down over time, will only further reduced the speed of change and power gradually slow down, and the prices are expected to reverse.
Power indicator cycle days generally between 8 to 20 is more appropriate, commonly used on the 10th cycle.
The use of Rule 1. MTM break from the bottom up based on-line buy signals when, on the contrary, MTM by a break-down when the base on-line sell signal.
2. In setting 10-day moving average case, when the MTM from the bottom up over 10-day moving average sell signal.
3. Stock rally in the highs, while the MTM can not cope with increase in the phenomenon of divergence, which means higher power weakened, to guard against price reversal down.
4. Stock decline that the record low, while the decline in MTM unable to meet, there departure from the phenomenon, means that fell less power, this time to note the bargain hunting.
5. Such as the price has been rising in the low with the MTM, the reality will have a short-term rally; such as the price at a high level simultaneously with the decline in MTM, the reality may be lower short-term trend.
Edited in the gold-line
