Category: Money Tips Date: 2007-02-01
The form is the "long upper shadow doji 10 limit-giant-yang" technology patterns, that is, stock prices are not high does not run until a low waist, in a particular trading day, K-line revenue out of a long upper shadow with a cross stars, the next day, the Unit daily limit, this cross surrounded by stars in one fell swoop, we have decided this phenomenon is called "snake swallowing an elephant." This is a short-term buying opportunity, if the short-term speculators to close before the discovery of this phenomenon, then we would immediately grab chips, even at the price above the limit-queue waiting.
Market Characteristics
1.5 days average 10-day moving average, 20-day moving average, 30-day moving average and 60-day moving average was long and so were being arranged.
2. The share price of such stocks must have been from the bottom up is at the beginning should be the second wave (also can be the first wave) pulled up phase.
3. At this time, due to the close of the stock's share price has been far from the 5 days moving average, so the dealer had to throw around the closing price, buy low, so that Xi Pan, to close at the time of price stability above yesterday's closing price, and therefore produce the phenomenon of cross-Star. However, due to the dealer the same day once pulled grab chips, so the cross-hatched longer on the star.
4. One or two doji after a long shadow on the Unit finally followed by the 5-day moving average but that the dealer would no longer pull big Yang Xian, the Unit therefore Zaishangtaijie.
Example
Early April 1999, China's stock market is being re-fried red to the concept of 600,665 was then Huchang Special Steel Makers phase, Lagaojiancang. Accumulation can continue to bargain for the next day, the stock of market makers in the April 5, 1999 Lagaojiancang morning, so that shares forcibly closed out the Shooting Star, in order to scare off investors. The next day, when people are still waiting to see when the stock promptly went limit up, lest others taking away the discs. Another example is 600,601 Founder Technology in December 1999 also this happens, we may as more research, an increase of insight.
Main intent
1. Doing so primarily to Zhencang and Xi Pan, but also for the next day to provide convenient conditions for further accumulation.
2. This also explains the same time, making the hands of chips is not enough.
3. Another intention of the dealer to do so is to repair too overbought indicators for future future battles.
Market Significance
1. "A snake swallowing an elephant" has ultra-short-term buying guide, is a rare short-term buy indicator.
2. "A snake swallowing an elephant" phenomenon in which the location of the absolute price is generally not very high, usually rising position.
Operation Strategy
Generally in the form of the technology will be formally grab chips Entering formation.
