Category: Money Tips Date: 2007-05-10
"Extremes meet, situation improves" is the inherent laws of development of things, but also at the end of the market with top-conversion laws. After each drop, must go through a long enough period of Xundi bottom bottomed, experience long-short to fully change hands, the new bull in the bottom of quietly accumulating enough chips, and a thorough restoration of the market mentality, in order to resume its rally. Double Bottom with three at the end of the bottom of the reversal is an important reversal pattern, while in a single end of a double-dip, or three at the end of purchase is one of Gann trading rules combat, so this appearance, as a simple form of still worthy of our study and application.
Double bottom is a form of analysis is one of the most important of the bottom of the form, its shape resembles the letter W, thus also known as the W at the end. Last year, the big black horse Changan Automobile (000625 market, information, advice, more) weeks to build on the K-line diagram of the double-dip, as an example (figure 1), indicating that playing hard to the end of the W in the use of actual combat: 1, W at the end of the interval between two low-cycle, at least in more than a month. Changan Automobile was the first time bottom in October 2001, the second bottom in a February 2002, before and after the span of more than three months, in line with the requirements of W at the end. As investors raise the level of the current low of W at the end of two cycles can shorten the interval between the tendency, especially in individual stocks bottomed out more presents this characteristic. Therefore, continue to follow the broader market judged that the classical theory, for individual stocks may be appropriate to relax this standard in terms of actual combat may wish to take the initiative and flexible, as long as the look and feel similar to the W-shaped, even if the gap between two low cycle is too short, it can be regarded as W at the end. Long Park, Hsin-tsai (600,525 market, information, advice, more) weeks since the last public building into the K line on the W at the end, * ST Changchai (000.57 thousand quotes, information, advice, more) weeks K-line in 2002, November 5.15 yuan and 4.99 this year, in April after the success of quadratic bottom to build into the W at the end.
2, a relatively large turnover low, bottoming out when the volume is quite a lot, but the second lowest turnover are incredibly boring, and the appearance of a second low sometimes showing a circular arc at the end. Changan Automobile exactly in line with the volume and price with this feature. "Head on the 1st, the bottom of the Hundred Days," at the bottom must go through a cycle of rest, of course, as investors raise the level of technological warfare, W at the end of the second lowest of the build also shown to accelerate the trend, the main bargaining chip in the low acquisition Experienced investors tend to run into looting disk, so too now do not have to insist.
3, W at the end of the two lowest point is not necessarily at the same level, less than 3% difference between the two is acceptable. If the second low low lower than the first one, indicating the main had broken at the end to create an atmosphere of panic, chips higher degree of concentration is conducive to further lift stock prices; if the second low than the first one low high, showing the availability of funds with the main disk grab chips, the main accumulation remained inadequate, with increasing persistence is not very strong, but short-term explosive is stronger.
4, the stock position to break through the neckline, it must break up the big volume to be effective, such as when the volume was too small to break the neckline, then the greater the probability of continued sideways shocks. Shares of breaking through the neckline, the neckline from the pressure into a support. Price will appear at the same time withdraw sword process, thereby testing the strength and support the validity of a breakthrough, this is the best time to intervene in the short center line. Chongqing Changan Automobile in late April 2002 and the emergence of high-volume breakout neckline gapped weeks gap, followed by a pullback in early June and the end of withdraw sword.
5, when the withdraw sword is complete, W will be completed at the end of its measured l-degree, that is, counting from the breakthrough, coupled with a low neckline to the vertical spread. However, measuring the increase of Changan Automobile will continue after the completion of full capacity, speed rose to become the biggest dark horse in 2003. 6, high W at the end of the line is a typical lie, bearish patterns. W is the high end of the relatively high price of the W pattern emerged, often in a period of fulminant rally into the end stage of formation, in the actual combat to be prudent.
After the price drop will be accompanied by rapid plunge in single-end rebound double-dip, and even reversed, while the ultra-sharp drop will trigger the collapse of market confidence, the most pessimistic about the end of the time do not forget that there are three possible reversal, there are still extremes meet the Jiancang opportunity. This year Niugu Founder Technology (600,601 market, information, advice, more) starting point is from late 2002 to build a triple at the end of the beginning. Reversal at the end of three forms of combat skills essentials with a double at the end of almost, in addition to need to pay attention: 1, by the deep and long-term rate down, the three bottom bottomed and the irregularity of the bottom of a big bang, the more intense competition for the bottom of the regional long-short changing hands more full, three at the end of the longer time span to build a to build a solid bottom means that the more concentrated. 2, the market when the third bottom, investors tend to despair, extremes meet the market features more clearly, people abandoned I take, and good at bargain-hunting in order to realize new vista of fun. 3, Gann trading rules require investors to pay special attention if the market at the end of the fourth, they are not absorbed by opportunity. According to Gann's experience, the market four times in the end break down the chance is very big.
