Category: Money tips Release Date: 2006-01-15
In the broad market and individual stocks daily trend, investors often face stock or stock price fell below a key, or "index Powei" or "stock Powei" situation. Generally speaking, there are a variety of types of stock Po Wei, both from technical analysis Powei, such as certain technical indicators Po Wei, K-line form Po Wei, etc., but also there is a tendency levels of Po Wei, such as technical forms of critical fell below, medium and long term moving average support and so on down through the
. Powei the emergence of the trend, and some may be a reversal of long-term turnaround, and some may be normal short-term adjustment of the stock. Therefore, for different types and different nature Powei have a different response measures should not be generalized.
First, the share price trading range from a high level phenomenon occurs Po Wei.
This mostly occurs in a number of long running Zhuanggu on high. If such stocks with heavy volume lower limit or substantially equal length Yinxian gapped way down below the previous consolidation zone, basically stock will be accompanied by a continuous "diving." After the decline due to Powei enormously investors holding stocks for the first time Powei should lighten up out in order to avoid unnecessary losses, rather than have left to chance.
Followed by the index in the tape appeared on a number of key point and the Po Wei.
Because of historical reasons important to the bottom of the tape formed by an integer and a number of critical control points, generally have a relatively strong technical support and psychological support for the role. In the absence of major bad situation, in which the relevant point is broken, it is often trigger the involvement of a large number of short-term funds rebound at this time Powei usually see the low short-term market signal. If investors take a cautious pre-Po Wei wait and see strategy, then once Powei appears, follow the trend should not sell into, but may consider appropriate to participate take short-term opportunities.
The third long-term moving average fell below Powei formed.
If you fell below this moving average, you do not have to hurry to take action. However, if a breakthrough is valid, it should attract attention. Because this situation represents a mid-term downward trend over the establishment and formation of the stock will continue to adjust the subsequent long period of time. For example, the 60-day moving average has been below the general mean that high-point of band has been formed; 120 days half-line below indicates the trend has already begun to adjust the center line, when to be on the sidelines.
The fourth is a technical analysis of the Powei form.
Such as head and shoulders or double top neckline place, the rising trend line, Xiangxingzhengli of Xiangdi-bit, and finishing at the end of the triangle edges and so on. Technology morphological Powei generally occurs late in such form at this time would likely be accompanied by large volumes of the situation. After the adjustment of the depth of Powei depends largely on the size of the technical form. Form the greater and sustained longer Powei space will be larger after the adjustment. However, due to technical patterns in the Po Wei may also occur within a short time after the right neckline bit Fanchou confirmed and, if not out of shape just Powei time, then when the opportunity should not be missed.
Lastly, there indicators issued by the Po Wei signals.
For example, Bollinger Bands in the track fall to below; SAR indicator green; MACD indicator of the high cross and so on. Investors need to note is that in the application of technical indicators to determine the price or the Powei index, it should as far as possible long-term trend indicators and indicators of class signals prevail. Because short-term indicators, such as KDJ so too sensitive to changes in stock prices often occur false Powei situation. In addition, analyzing technical indicators Powei signals, but also more fundamental factors combine to ensure the accuracy of the operation. (China Securities Research Institute Kai)
Edited in the gold-line
