Category: Money Tips Date: 2007-06-23
People know that, in the form of the theory of price trends, there is one called the wave theory, for many investors relish, and always in "Waves" analysis Quotes. However, the ignorance of the market the market mechanism of the formation of wave patterns, or can help understand the state of the market at different times, as well as their own to invest in the stock market when trading positions.
The formation of the first wave of up and running, because just out of Xiongtu, and the prices overall are still at a relatively low area, originally filled with the bear market mentality in the market yet to be eliminated, so most investors generally treat the rally to implement in most operational behavior of investors, that is, "see a rebound ship." As a result, the formation of a second wave pullback. For example, last year's Quotes rose to 1223 points, 998 points, but also a callback to 1067 points. Again, early this year, the vast majority of investors Quotes of the anticipated targets for 1300 points. Thus, having a first and second waves operational phase, the market most investors still think the adjustment period is still in a bear market, and the prices rise is just a rebound in nature. In fact, the first and second waves of the stock market is the major financier of the process of gradual Jiancang The reason is simple, if there is no dominant trend of the big money round Jiancang during this period, and the prices can not be generated at this stage, the trend turns, the first 1, the second wave and can not be bull-market then the bottom area.
Wait until the trend Jiancang large capital needs have been met, and subsequently the commencement of the third principal Shenglang. The third principal Shenglang characteristics, advancing step by step, refuse, or callback, or the interpretation of a continuous rolling empty rose. The third main Shenglang start, reversing the original exists in the bear market mentality of thinking and cautious. However, when the market thought this bear market into a bull market mentality, when most investors throw strategy into buying strategy, on the one hand Quotes prices have been much higher than the original "see a rebound threw out the" when the price, think about buying the other hand, has only chase. For example, this year after breaking 1,300-point market, especially after the 51 Quotes. Again, the organizations were established to fund non-ferrous metal stocks mostly Jiancang the fourth quarter of last year and this year's early, but the market was formed in the heat of the non-ferrous metals in March after the daily limit in a row.
When the market thinking of the vast majority of ordinary investors in a bull market driven by the third principal Shenglang been established, and have a relatively strong bid will no longer fear the trend of rising prices and, when the market price has also been far higher than the largest funds in the first and second waves in the Jiancang the cost of a wish to buy, one willing to sell, forming a process of mutual change hands, the fourth wave of a strong order patterns are thus formed.
Quotes of the above understanding of the process of follow-up to actually understand the characteristics of the fifth wave rally, which is the fifth wave is the trend of big money overstating shipping Quotes. The reason is very simple, a rising fifth wave is the last wave, there is no overstating the trend of large capital ship, the whole does not rise after the end of the fifth wave. In addition, in the market to buy up not to sell or creed, the trend of huge amounts of capital can only be overstating shipping, rather than a sell into shipping. Therefore, the fifth wave of the stock market is always price-volume divergence.
Quotes of the end of the fifth wave, also means the end of an upward trend, followed by the adjustment is a tri-band waves, their respective properties are completely different.
A wave of the most prominent feature is the "Big Yin Gai-top", and the prices in a rising trend in the end, the trend of big money are going separate ways when he fled, dripping on the Quotes form of pressure decline. Therefore, the large level A wave of start most of the big Yinxian or in combination to represent the Yin Xian-shaped, and the prices will be in a very short period of time in front of the fourth wave of changing hands dropped to finishing area. At this point, in front of the main Shenglang the end of the third period, finishing fourth wave changed hands, the fifth wave pulled when buying, and did not, and most investors have been living in shipping quilt position.
B wave rally, some do find the price of speculative funds, as well as some small level of funds of organized self-help behavior gradually formed. B waves are some of the stock market to find masters the opportunity to get out of trouble, so are the prices l B Lang Quotes of the amount of shrinkage, and the prices are generally the trend has bizarre twists and turns, and stocks volatile performance is Change.
B wave end, and the prices scale of loss of capital, organization capital, the trend of funding for operation and maintenance, and the prices will enter the most chilling of the C wave to adjust Quotes, C to adjust the initial wave is characterized by Suoliangpandie, C wave to adjust The last period to sell into a panic feature, in the immeasurable Pandie forced out in a large number of stop positions, in the panic to force some investors to sell into a bottomless pit in liquidation. When the market as a whole in the C waves from the disappointment into despair, when, and the prices rise in turn entered the first and second waves ... ... a new round circle.
