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Data:2009-12-12 2:34
From foreign exchange technical chart perspective, a Shenglang from A point of view, rose to the peak point B, C points, fell back, come back again on a similar price point to B point D, forming another peak. Followed by the fall, the break point and C point A to extend the pull into the "neckline" and become a prelude to a decline. This trend patterns, because there are two price points similar to the top, it is generally known as double top. Also because of its graphics and letters M similar, it is also known as M top. On the contrary, the next decline occurred at the end of the double bottom, and is called a W at the end of. M top-down signal is strong, W at the end of the rise is a reliable sign.
Why double top is a strong drop in the signal then? Because when the first the formation of a roof fell back in the process of admission is certainly a large number of selling it to make Quotes down, in the first region of the top of the buying has been stuck. When the price rose to the top and a similar price, if a strong enough market to buy gas, then, there should be over the peak, resulting in a wave a wave of the situation. However, the second wave of the rally has failed to deviate from half a step, it seems "at home what the cloud cross-Qinling Mountains, the snow is not pre-pro-Lan Guan Ma exclaimed," to form a second top nosedive. Clearly, this wave rally is a spent force, "air force" out in force, indiscriminate bombing.
More importantly, they originally were in the first one is stuck near the top buyers of their own lingering fear, I feel the second wave of rebound is just Huiguangfanzhao, a price close to see, they rush to sell off, rush, such as slip through the net. Therefore, the double top formation, reflecting the generally not optimistic and the market psychology is the performance of the fragile mood of buyers.
In particular, below the "neckline", the entire decline in the trend can be confirmed.
The opposite case, the double bottom is a solid foundation on the rise. When the second at the end of formation, indicating the broad market has found support point, buyers purchase a free hand in the first person to sell at the end of a "small loss when the winner takes all" mentality eager to cover their short positions, the trend has lost "a low-wave wave "The driving force, turned up to a matter of course.
Sometimes, newly formed double top shape, and the prices there will be repeated, to a U-turn has evolved into a three knocking at the gate. If not broken in the last two high-priced, then transformed into a "three reach the peak" is a golden opportunity to attack short. But whatever to do to take advantage of the double top to take advantage of short or long to do a double-dip for everything good stop plate. Despite drastic changes in the event, breaking through the ceiling at the end of the indemnities, which is called "Beware of passing ships were thousands of years."