Category: Money tips Release Date: 2006-07-11
Old saying goes: "The labor wants, we must first sharpen his tools." When buying and selling stocks, using the chart for reference, help us to understand the past, the movement of sensibility "to Long", thus rational predictive trends "to pulse."
The trend line is widely used by investors as a chart analysis tools. Although the simple, but there are actually practical value. The concept of the trend line is: in a rising trend in the two or more Shenglang the "bottom" a line, be extended, which is an upward trend line; in a decline trend in the two or two decline of more than wave the "top" a line, be extended, and this is a downward trend line.
The trend line theory is: If the stock is still rising trend of track running above the trend line, the stock can still hold; if below the rising trend line, we as a turnaround, to sell the stock. Conversely, if the general trend is still down trend line below the trajectory of free, they should continue holding cash at hand; break down if the rising trend line, that is, buy signals, should be changed to Zuo Gupiao long.
Stock market price trends, determined by the buyers and sellers battle forces. Charts, in fact, is a "fighting" record. Buyers forces prevail, the chart is a wave after wave; sellers accounted for an overwhelming advantage, the chart below on a wave a wave. Above the rising trend of the "corridor" is precisely the "wave after wave" of the inertial direction of movement; the downward trend line of the "channel", just "one wave is less than one wave," the inertia motion path. If a rising trend below the trend line, indicating to buy gas from gloom and doom, "one wave after wave" of inertia has been reversed, so as to ship signal; On the contrary, if the trend to break the downward trend line, proof of sale out from weak to strong, "a wave is less than one wave," a reversal in the trajectory, it became the signal into the cargo.
However, the trend line based on the signal to buy or sell is too simple, because the two or three waves of the "bottom" or "top" pulled out a rising trend line or a downward trend line is very shallow, very easy. "Jhonggua was melon,种豆得豆", something not too easy to be too high rate of return.
And the reference to the sale of a majority of the trend line is entering the monk, therefore, the market trend line big favorite to superstition to become a prey, intends to break a broken line, to set up a chart trap, so even if the chart to break the downward trend in line or below the a rising trend line, you have a comprehensive supply and demand at that time, economic, political and other factors, to see if fundamental analysis is really bullish or bearish, so it is not easy to be "fake" fool.
If the fundamental factors and other technical indicators (such as strength index, volume and price analysis, band theory, etc.), and the trend line fit, we may wish to "strong stick attack." Scaring ourselves this time may be because the front is not a "trap", but "oil."
