Double bottom the reverse form of stock one of the important Money Tips

Category: Money Tips Date: 2006-07-05

Double bottom, also known as "W at the end" refers to the price of the stock the second consecutive decline in roughly the same time, the formation of a low stock price trend graph. Two fell to the lowest point of connection called the support line. Its formation is that, in the fall Quotes of the end of the sale of the stock market reduced the share price dropped to a certain extent, we began to no longer continue to decline.

At the same time, some investors see the stock price low, began to eat into the market, so that the power of the buying driven by stock price has slowly recovered, but this time, investors still down the wind effects which will not boldly dare to buy, and therefore purchasing power is not strong. The sellers feel that price is not satisfactory, watching on the sidelines. So stock up limit-stop, reach a certain stage, the market shares for the amount of the increase, the price back down again. When the fall back down to the previous low-priced, the market's buying power increases, stock prices began to rebound, rebound to the previous high point, will have completed a double at the end of "graphics.

î—?î—?"double bottom" graphics are characterized by two relatively low-priced anchor positions, and the entire stock price movements in stock price changes and volume changes to changes in the same area.

Is worth mentioning is that in the process of the formation of a double bottom, if the stock rebounded from the second anchor, there a third fell back, it was down the second drop should not exceed 1 / 3, and then immediately rebounded, creating new high. Only in this case, in order to confirm a "double bottom" has been formed, otherwise the price may still be low-cost adjustment.

î—?î—?Once the "double bottom" graphics can be formed, investors can seize the opportunity to buy a lot. "Double bottom" is a standard low-cost anti-transformation, then, stock prices will rise