Category: Money tips Release Date: 2006-09-14
An extremely short-term methods of operation, that is bought and sold within the same day.
1. Calculation
(1) The first calculation of the value of CDP (demand values) CDP = (H + L +2 C) ÷ 4 H: the highest price the day before, L: minimum price the day before, C: The closing price the day before
(2) The calculation of AH (the highest value) = CDP + (H-L) NH (near high-value) = CDP × 2-L AL (lowest value) = CDP-(H-L) NL (near low value) = CDP × 2-H, this sequence of five values of (from highest to lowest): AH, NH, CDP, NL, AL.
2. Application of principle to find out after the five values, namely, with the fluctuations of the stock market the day before the future Quotes of today to do a high and low levels of classification, analysis can take advantage of this distinction between high and low to determine the trend of the day. Judged that the key is to open market value which in the CDP 5 position, due to open market value is usually determined by market expectations of buyers and sellers of psychological formed after a reasonable compromise between price, the impact of the trend of the day.
(1) is not very volatile situation, which means that the market price at the close of high value and low value between the past, often low-value transactions can near the price they buy, and in the near peak selling price out; or near high-value price to sell, buy near low-value price.
(2) In the case of volatile, which means that the open market at the highest value or lowest value near the mean open gapped gapped open higher or lower, is a big move to launch the beginning of trading can at the highest value of the purchase price of catch, and the minimum selling price chase. Usually one gapped, which means a strong up or down, given the substantial profits.
3. Functional Analysis
(1) CDP is best suited to the upper and lower oscillating plate bureau market, select the range of buy low and sell high to make short-term profits.
(2) The crash of the stock market soared, particularly in breaking the resistance and support price of bits in order to avoid empty or cross-rolling pressure, required to set up stop-loss point, to prevent the sudden bullish or bearish impact.
