Category: Money tips Release Date: 2006-11-17
Deviation from the rate refers to the share price and the average deviation between the degree of mobile lines, through the form to indicate the percentage of shares and the average gap between the moving line. If the share price above the average, for the positive; if the share price below the average, for the negative.
Here, mainly from the perspective of investor psychology analysis. Because the average position can represent the average cost, good bad stimulus, resulting in skyrocketing stock price plummeted. Too far away from the average price will keep short-term reversal of the possibility of a deviation from the absolute value of the rate greater the possibility of stock prices to average close to the greater, and this is a deviation from the rate provided by the formation of trading based on reason. From the market experience, the 10 moving average line as the base year effect is good. To fall, for example, 10, a deviation from the rate usually -7% to -8% of beginning to rebound. Taking into account the safety factor of this value is not high, under normal circumstances, a more secure approach the timing should be chosen between -10% to -11%. Similarly, out of sound, rising in the short-term can be sold at around +8% deviation from the rate of application should be differentiated between a, for different risk stocks should be treated differently. There is a reasonable level of performance guarantee and the valuation of stocks, falling rates are usually low when the deviation from the beginning to rebound. On the contrary, shares of underperformance in terms of its deviation from the rate usually fell to the absolute value is larger, it began to rebound.
2, to consider the impact of the circulation market. The larger market shares in circulation, are not easily manipulated, moving in line with the general laws of the market, suitable to use a deviation from the rate analysis. The flow of the market value of a smaller unit or Zhuanggu charged as easy to drive, so the index should be used with caution.
3, in which the stock prices of the region should pay attention to. In stock turnover low density areas, because of chips scattered, the rate of use of a deviation from the guiding operation, a higher success rate, after a sharp rise in the share price, after the institution manipulated easily twists and turns, this time the success rate is relatively low.
