Category: Money Tips Date: 2006-07-01
Flag-shaped pattern often appears in a rapid but volatile market. After a series of short-term fluctuations in share price after the formation of a slight trend was in the opposite direction with the original tilted parallelogram. The flag is up or down in the continuous form, has been adjusted to continue along the original trend of stock prices up or down. This pattern of their movements, like side of the banner hung on the flagpole on top, so named.
Moderator: flag-shaped finishing in the stock price during operation frequency, the higher the accuracy of a relay order form. In this issue, we invited Mr. Zhang Hongji to introduce the use of its skills.
â–?Haidian District, Beijing Mr. Zhao shareholders: If the stock price decline on the rise during the flag-shaped, the how to judge?
Zhang Q: Personally, I think, flag-shaped form is a kind of finishing a relatively high accuracy of shape, in the futures operation, I often use it to analyzing 5-minute chart, its accuracy is satisfactory.
In general, the process of decline rising flag often represent stock market outlook will continue to rise. Of course, sometimes exceptional circumstances arise, such as stock prices rose, but fell in the flag. In this case, my personal view is that the form is still valid, but it is no longer an order form, but the trend reversed the original signal.
â–?Liu Chaoyang District, Beijing shareholders: What are the characteristics of flag-shaped finishing? How to determine breakthrough in effective?
Zhang note: In the actual application process, I have most of the flag-shaped finishing up as a measure of stock price decline in a standard. Typically, the flag-shaped finishing in the middle of a wave Quotes location, so when you see the pattern appears, will be able to largely determine the future of higher stock prices high.
Judged its effectiveness, the general point of view from the volume. First, the volume in the flag-shaped formation process, should be gradually decreasing. Secondly, in a breakthrough, either upward or downward, must be accompanied by larger volume, up and down when the flag-shaped breakthrough surge in trading volume has to be amplified, which is finishing it with other forms in different places.
Needs to be emphasized is that many technical analysis books, said that the break occurred after the graphic has to wait before buying to confirm withdraw sword, for this point I do not agree. Because according to my experience, the flag-shaped finishing the accuracy of the usually high, so do not need to withdraw sword confirmation; In addition, the form of a breakthrough, the shares tend to run quickly and rarely withdraw sword confirmed, and if simply follow the textbook on the argument, it is easy to miss some Quotes.
