Essentials of Technical Analysis of Stock Index the trap of trading volume and turnover of 6 Money

Category: Money tips Release Date: 2006-08-29

Essentials of Technical Analysis of Stock Index

1 Volume

Volume is one of the basic elements of technical analysis. Is the focus of investors to read the tape. It is the driving force behind the stock market, there is no volume with the stock market became a forest without trees. Experienced master of the entire market or individual stocks in trading volume as a measure of market trends and observed changes in the premise of looking for the main banker trends, select entry and exit time.

Volume is also a place where making love trap. But the identification of the trap-pei. Its application to bonding of the four loop term stock price even more clear. (One jin Chuang accumulation 2 Xipan 3 pulled 4 shipping)

Let me talk about volume six traps:

Trap 1:

Down to find heavy volume on the rise, shipping stages commonly used, taking advantage of people's "increase in volume price l" habitual thinking, smoking outside the market capitalization to create the phenomenon of buying a strong purpose of shipment.

Trap 2: By bad forced to kill, after Jiancang used, when the Jiancang, and if the broad market or individual stocks there have been continued to fall, when bad news, the main negative effects like zoom, with generous right knock, sell into unstable state of mind trick retail throw the stock has reached the purpose of rapid accumulation, vibration warehouse is also used when such an approach.

Trap 3: By good heavy volume rose, such as mid-year report, annual reports, news, before the advent of theme, it is optimistic about the market, the main lighten ship.

Trap 4: adverse economic contribution, often used to ship the day the stock market turned green, but there are "a pair of little red 10000 green," most of them suck your eyeballs, there is a bold follow-up, often a day or two of the stock market, followed by accelerated drop lock-follow-up person.

Trap 5, Su Liang was down, commonly used in shipping, when stocks pulled up to a certain height, the banker desires to ship, the village was down with the Su Liang (with the price of the amount is reasonable) paralysis people, let down our guard, missed out opportunity to gradually fall into a deep-set trap. What people say, "warm boiled frog" is the reason.

Trap 6, High Transmission and Distribution diluted trap, when the distribution of high stocks, prices are high people's Wei Gao psychology, will not be buying at a high level, once the ex-dividend, price down, the main use this Quote substantial speculation, when a large number of retail buying, the ship the chance came.

Of course, any technical indicator has its two sides, and repeat it a good side.

Volume indicators are commonly used [1 turnover, 2 energy flows (obv), 3 main access (abv), 4 volume (vr)]

Expert analysis of the stock you will often see its shadow, in particular, is (1,3,4) they are masters of the sword.

(Unfinished, the next one)