Category: Money Tips Date: 2006-05-22
The more mature stock market, investors who use technical analysis, the lower the ratio, especially individual stocks investment, international markets generally bottom-up stock selection has also been in these two years in Shanghai and Shenzhen markets have become increasingly popular. However, it also technical analysis is not a useless, technical analysis for the analysis of broad market indexes, there is still a very high accuracy. Therefore, the use Technical analysis judged the broader market stock selection based on the fundamentals should be the next feasible.
The standard form of the perfect speaker 3 high 2 low by the composition of the three high a ratio of a high, two low then a lower than 1, when the stock price or index fell back from the third high-point of its decline low low low when compared with the previous one, it can be assumed that the establishment of patterns. 1297,1300,1308 three high benchmark Shanghai Composite Index more than a high one, and even into the sideline, 1256,1238 constituted under the edges of two low belonging to a rare form of the standard speaker.
And the head and shoulders, like horn patterns are classified in the "five-point to" pattern. Although the speakers are also likely to shape up breakthrough, but the vast majority of it is breaking down, and the general decline was relatively large. The horn shape is generally regarded as the final consumption of the market rise, the final frantic index or stock will tend to push to the very high price, but also implies that purchasing power has been given full play, rally has come to an end, the subsequent decline in multi-modal multi-kill will be more tragic.
Once the trend appears horn shape, the best selling point for the near sideline on the first impulse to sell.
Week 4 tape Mogao 1348, has crossed the upper edges of the horn, then close out the yin doji, if the speaker forms to comply with the operation strategy, should be a very good selling point, at least short-term selling point. 90% of the probability of 1348, or 50 points above the stage area will form the head, while only 10% of the probability, the horn shape is still a relay form, the market outlook will continue to surge. If the 1348 or the top of the 50-point area is really the formation of interim head, afternoon once again evolve into diamond-shaped head and shoulders top, and so are likely to fall directly, but it depends on the policy aspect of the changes, in particular new from the old Ho this sensitive when it introduced the policy.
At present public opinion frequently advocated early resumption of direct financing is conducive to capital market development, financing of this year, 5.1 after the restart a great possibility of the door. If at any time before the tape had already been fully adjusted, then the impact on the market to resume financing would greatly reduce and may even re-boot into a catalyst for Quotes On the contrary, "expansion put the idea of" mindset, will remain on the market to form anti - .
