Category: Money tips Release Date: 2006-11-01
Double Bottom pattern is a more reliable reversal patterns at the bottom to the stock market indices in recent years, for example, has had repeated double bottom patterns are:
â‘?2001 years of October 22 and November 8 to form a double-dip, the stock started a rebound;
â‘?2002 Nian Chu bottomed out 1339 points, the broader market, launched a mid-level to build a double-dip, Quotes;
â‘?2002 Nian '6 * 24 'blowout Quotes ago, Hu Zhi 1400 to build a more successful double bottom;
â‘?2003 year '51' holiday closed around Hu Zhi, after building a double-dip, bounce, and the theoretical gains.
Judged against this type of focus on the bottom of the right of the share price to go when the technical indicators whether there will be departure from the characteristics, if a departure from the technical indicators do not produce, w-shaped bottom may be converted to other forms, such as: multiple at the end. Even if the w-shaped at the end of the final set, its upside momentum will be weak.
The success of Double Bottom pattern does not need to complete the same two low, in most cases, right above the left at the end of the end of a normal situation, investors if the blind pursuit of two at the end of the same tends to miss the boat. There are also lower than the left-right at the end of the end of the case, such as the double bottom in early 2002, the index, investors in the form of analysis, the key is to understand the morphological analysis of the substance, rather than rely solely on morphological appearance.
Double bottom in the form of stock selection for investment, we should focus on three main factors: the amount of energy change, shape of the neckline bit and Zhang Sheng rhythm, the first two key factors are well known, is the larger volume to be effective, but also to successfully break form neckline bit.
As for Zhang Sheng rhythm, if the stock price rise after the formation of double-dip, rhythm is very single, is a species of smooth linear rise, but not conducive to the sustainability of higher Quotes. If the stock price rise is to maintain a strong rise in the rhythm twists and turns, half-way continuous adjustment of some oscillating strength but is conducive Quotes Quote of the sustainable development. Only repeated oscillation of the higher Quotes Xi Pan, the main force in order to be fully Jiancang and speculation, in the interest of Quotes to develop in depth.
According to Double Bottom pattern should be selected when the stock picking stocks relatively active stocks, these stocks good elasticity, large amplitude oscillation, there is room for short-term profits. In addition, when the stock break through the neckline bit later, usually, most of them can reach the theoretical goal of bits, the theory targets are launched from the bottom of the distance from bit to bit neckline neckline bits come together. However, when the stock reach the target position after the theory, and the prices often sue one stage, this time, stock prices are there to continue the momentum gained, it must be based on prevailing market conditions determine otherwise.
