Category: Money tips Release Date: 2006-10-05
Stock's stock rose in the whole process, often with little sustained climb of the stock market, will always be some period of adjustment and down. Such adjustment and fall times are short-term adjustment, sometimes a long-term adjustment, sometimes even a trend change. Thus, when stock prices decline when stocks decline how to accurately determine trends and adjust the time, for the future operation of the technology has important reference value. If the wrong judgments will be short-term adjustment as a long-term decline, you tend to miss the big Niugu; on the contrary, if the long-term trend change in the short-term decline will be seen as significant losses. Therefore, the following fall on some of the most common form of technical analysis, as an investor to judge the trend of reference.
One is an individual stocks continued to rise in after one or two trading days of the fall, you should not make judgments, as long as the individual stocks still rising channel, should continue to see more of this decline is only a temporary way to increase adjustment; If you break down the original tracks and trends, there may be several months of adjustments, but the medium and long term is still bullish. Investors such as with a band operating capability, they can do a short bad, but most investors do not have this ability and, in general, as long as the bull market is not over on the way to hold; third down is the trend changes. The drop continued a record low, and fall is often a long-term, once the quilt is a very long hold-up in case this decline would be investors need to leave as soon as possible.
Only from a technical point of view, it seems quite similar to the second and the third case, it is difficult to distinguish, while the other can be distinguished when the stock price has reached a very low level, has suffered heavy losses of. Here, we suggest that the decrease can be judged. In general, in operation, it is difficult at the highest price or the highest price in the event of the day to judge, so there should not be the first out at the highest price requirements. For those long-term bullish for stocks, its price fall from the highest magnitude is relatively small, and often there is a rebound action, that is, multi-head technology patterns; and weak stocks are down by a big margin, but the rebound a lesser intensity, which is often a rebound in stocks in the rebound height of less than half the fall, this often means long-term trend changes. Therefore, for those who showed a larger fall in, but then rebounded in the intensity of the smaller stocks, the need for early to settle out.
In fact, to judge from the contour of the stock price trends in individual stocks is a reference meaningless, because on-line is very short, which will appear a lot of cheating lines, tend to make investors a short-term trends difficult to accurately grasp. In general, the stocks of those mid-course adjustments box will appear sideways or up the technology triangle shape, but the trend change in stocks is a form of continuous down-dip.
