Category: Money tips Release Date: 2007-03-10
Link-based analysis of diamond-shaped reversal pattern can be seen as the proliferation of flared successive symmetrical triangle consolidation graphics, left part of the same shape and spread of speakers, their markets have the same meaning, the second rise is lower than the previous high, down low is lower than the former one, when the third pick-up, the high point it can not rise above the second high level, and then drop down points compared with the previous one but a higher stock price volatility to spread out from the constant inward, narrowing the right half of the same department and symmetrical triangle, which is diamond-shaped pattern.
Formation mechanism: the left part of the mechanism of morphology and proliferation of horn shape, as investors face of a soaring speculation by market rumors of the infection, when the stock price rises will be mad chase, but fell Shiyou blindly join the ranks of sell-off, crazy sell into. This market is extremely impulsive and disorderly action, causing the share price since abnormal mad mad down to form a high rise higher than the previous high, low when compared with the previous low, it tends to produce irregular As the giant poor turnover, reflecting investor sentiment impulse buying and selling, thus creating an expanding triangle; but optimistic and those who do so in the long-term holdings of, better make impulsive Fuchou declining short-term, stable and optimistic and the strength of have gradually become mainstream, then gradually reduce the volatility of stock prices flat, while the sharp drop volume shrinkage in the second half of the same as with the symmetrical triangle, after changing hands full finishing up after the break, of course, diamond will not necessarily break up, down break into the top form of a lot of opportunities.
Features conditions:
1) The first part of Volume and Diffusion of trumpet, as the rules tend to enlarge rather than with high turnover, the latter part of the same as with the symmetrical triangle, volume tends to gradually decline;
2) general upper and lower breakthrough volume will be a moderate amplification, which will soon break down to form a heavy head, medium-term trend to the light;
3) its minimal l-point decline in the ground breaking start to the largest vertical in the form of the difference, in general, the price movement of the actual distance, a minimum amount of increase than that long; operations strategy: the best price with the amount of the sale of point breakthrough in the latter part of the symmetrical diamond shape when the triangle.
