Category: Money tips Release Date: 2006-05-20
Diamond finishing Xingzhuang Si because of its "diamond", is often called the diamond shape the market. In the form, it can be seen as two different kinds of triangles by a combination of finishing. With the proliferation of the triangle, as often is also a bearish diamond pattern, it usually appears in the market to build a short-term or long-term when the head and occasionally in the form of down process to continue to appear.
Moderator: Diamond is a rather special and rare form, regardless of any location in Quotes, its technical sense have only two words - bearish. Because of its once formed tend to have more lethal, so in a unilateral City currently based on the Mainland market, investors Bukebufang. In this issue, we have invited senior members of Mr. Zhang Hongji securities to introduce the diamond finishing.
Tongzhou District of Beijing Liu investors: why the emergence of diamond finishing, stock prices were mostly lower?
Zhang Q: From the psychological point of view of investors, the proliferation of triangles and narrow triangle just revealed the two different state. The proliferation of the market forming a triangle, it is often the investors become more and more involved in response to emotional, makes Quotes shocks gradually increased. Quotes in a narrow triangle when finishing stage, the market is waiting for the time being, the choice of direction, leading to more and more investors turn to wait and see. So when the diamond-shaped pattern arises, indicating the market is relatively active from a period of gradually shrinking down. But also because at this stage of the market participants continued to decline, making diamond-adjusted Quotes After most of the time chose to be adjusted downwards.
Haidian District, Beijing shareholders Chen: How to choose diamond time to sell?
Zhang Q: Under normal circumstances, when the proliferation of the triangle constitutes the main support line is effectively fallen through, he declared that pattern has been basically completed. In addition, the proliferation of the early stages of diamond-shaped formation of the triangle, but in most cases, the proliferation of triangles are bearish patterns, so investors initially took shape in the form can choose to sell.
It is noteworthy that a number of other technical analysis methods may also be issued at the same time selling the corresponding signal. Such as RSI, KDJ and other technical indicators in the expanding triangle formation occurs when the top of divergence phenomenon; OBV innovation in the stock price is high does not sync up, making the content can not cope with, these are the main basis for sell.
Chaoyang District, Beijing shareholders Zhao: Diamond finishing the decline appears to be how to calculate?
Zhang Q: After the emergence of a decline in diamond should be at least the highest point of its shape to the lowest point of the vertical distance.
There is also a special case. In the futures market, the diamond will sometimes appear in the two channels of the junction in the opposite direction, as scheduled in order to increase access prices to the high run after finishing, the channel parallel to become diamond-shaped left upper and right bottom. Subsequently, the period of prices turned down, or lower channel run, so that diamond-shaped upper right and left bottom has become a downward spiral of the two parallel edges. Once this happens, period of price decline is usually at least 50% of the previous gains.
