Category: Money Tips Date: 2006-02-26
Investors in the big city of the mid-turn (-turn), began a long decline in the adjustment process, due to inertia effects, always thought that big city in a very short time to resume its rally, another record high, tend to believe that the rebound in the day is the bottom position, and thus, in the general decline in courageously rush a result layers of hold-up, again and again sell at a loss. So, how can we correctly judge the bottom of it?
First, do not expect the lowest point copy
Most investors believe that that is the bottom of the bounce, fearing to miss buying opportunity, but because of rebound is a high-risk behavior, it is recommended shareholders friends do not want to buy a low point, waiting for the bottom of the form has grown up a lot to buy in order to avoid decline was stuck with a low of lows.
Second, do not base the amount of superstition
As we all know, the rate of reduction the amount of shrinkage. However, the amount of reduction can also be contracted. So, should wait for the market index or stock prices stabilize, the Xun on the 6th are increasing the amount of three consecutive days in order to confirm.
Third, do not think that can be completed at the bottom of the day
As the saying goes, "a three-day low-cost high price Hundred Days" is this truth, generally at the end there are several forms, W at the end and the park is a more common arc at the end of the bottom, never try to steal the V-type, since the end of the regular V-is a left shoulder, There will be a bid to trap the possibilities.
The bottom of the recognized standards, in general, appears at the bottom must meet three conditions:
A technical side:
A, various technical indicators must be an upward trend line break down, due to the stage of its decline trend line are different. Generally subject to 25 average.
B, from the morphological point of view, the previous lowest position is the reference point, if there are several times in a year are in a rebound increase in the lowest position, then the location that can be considered a medium-term bottom.
C, Zhou has been formed long lines arranged in line on the 6th day are increasing the amount of the third consecutive day Xun.
2, the fundamentals:
China's stock market is a typical policy of the city when some news before the surface is not always easy or difficult to clear up, high-volume initial public offering, etc., can make the stock market fell to a new level; On the contrary, the stock market will be relatively stabilized.
3, other factors:
For example: at the end a shortage of funds, or withdrawn from circulation, etc., which can be caused by psychological bearish market. Therefore, the bottom is the process of building a longer period of time above the bottom these are to be considered in determining the factors.
Correctly identify and grasp the opportunity to access, but also the large number of individual investors to gradually close to the main behavior of a way!
