Category: Money Tips Date: 2006-03-22
1. Pattern analysis of wedge-shaped sector, the Department of shares in a straight line on the convergence of two changes. And the triangle line is that two different lines at the same time on the dumping or next ramp. Volume change and the same triangles to the top of decreasing. Divided into wedge-shaped wedge-shaped rising and falling wedge. Following a rise in wedge-shaped means the stock has a strong technical rebound after falling, the price rose to a certain level of the whereabouts of another U-turn, but turn down the previous high point, but also rose to a new high points than the previous rally high, and then down to form a wave a wave of the trend, linked to high short-term and short-term low-linked to form an upward-sloping straight line, following a steep decline is more wedge-shaped contrast, the high point of a more than a low, low is also lower than the one formed at the same time two dumping under the slash. Two kinds of wedge-shaped volume is closer to the ends, the less deal.
2. Market implications of an increase in wedge-shaped - the surface, the ascending triangle on one side only on the tilt, the representative of the bull trend, rising edge of wedge-shaped two dump, bull trend should be thicker, but in fact not the case, because the ascending triangle The top line represents the stock was sold in a certain price, when the supply is absorbed (up the line on behalf of absorption), upward pressure to lift the share price will jump up. Wedge-shaped on the rise, the stock price rise, selling pressure is not large, but the investor's interest has gradually reduced, while stock prices rose, but each new rise in volatility than the previous one is weak, when demand finally disappeared completely when the stock price then fell back reversal, so that a rising wedge-shaped technical meaning of the situation gradually weakened. Wedge is finishing up a pattern, often fall rebound stages of the city, an increase of wedge-shaped display has not yet bottomed out or is just a technical rebound after last fall only, when its floor below, it was time sell signals. Rising wedge would decline, at least for the new rise in the price of Diediao, but also to then drop more, because it has not yet bottomed out. Wedge-shaped decrease - meaning its market and rising wedge just the opposite. Shares rise after a period of time after the emergence of profit-taking, although less wedge-shaped tilt down the bottom line, seem to suggest the strength to undertake the market is not strong, but the new down wave down wave amplitude compared with the previous one for small, indicating selling forces are weakened, the combined volume reduction at this stage can prove in the weakening of the market sell-off. Finishing down is also a form of wedge-shaped, usually in the medium to long term adjustment period up down the city appeared. Wedge-shaped decrease the appearance of telling us l City have not yet peaked, which rose and then just the normal adjustment behavior. In general, the patterns are mostly upward break, when its maximum resistance of a breakthrough, that is, a buy signal.
3. Points to Note (1) wedge (either up down wedge-shaped wedge Yi Shi) from top to bottom two lines must be clearly converge to the point, if the pattern is too lenient on the possibility of the formation of suspicion. Generally speaking, wedge need for more than two weeks to complete. (2) Although the fall appeared on the city and or most of them are down below the wedge accounts for many, but to the contrary, if broken up, but also a significant increase in turnover, pattern variations may occur, and the like into a rise in channel, this time we should change the original subdued in view of market (or stock) may be along the upper and or new channels, start a new uptrend has. Similarly, if the wedge did not rise but dropped down below the lower limit of support, pattern and sample may be changed to a decline, this time with the afternoon's view on the city of potential changes should be made to revision. (3) The increase in wedge-shaped upper and lower two lines converge at one point, stock prices move within the pattern will only be limited and in the end, or will eventually sue below. The share price fell below the ideal point is from the first a low start up until the wedge-shaped tip, the distance between the 2 / 3. Sometimes, the share price may have been moved to the wedge-shaped cutting edge, even after a little out of cutting edge up and then dropped sharply. (4) decreased a little wedge-shaped wedge and rising significantly different from an increase in the wedge below the lower limit of support after a steep decline often occur; but decreased wedge-shaped break up the resistance, it may be to cross-development, creating a hovering state or park-like turnover is still very low, and then slowly began to rise, this cross is also correspondingly increased. The emergence of this situation, we can wait until the share price to break the lingering stalemate after considering following suit.
