From the trend volume and moving averages to identify trends Money Tips

Category: Money Tips Date: 2006-09-03

Learn how to read the tape, master the basic knowledge and skills to read the tape, one for each long-term investors in the stock market Bosha is a required course extremely important, it relates to investment success and failure is related to wealth the acquisition or loss. Under normal circumstances, investors need to read the tape to observe the following three points, known as disk "three to see."

A look at the trend, that is, pay close attention to changes in broader market trends. Depending on the channel theory, a trend in stock will generally run along until the policy face significant changes in the macroeconomic side, this trend will change gradually. Of particular note is the trend of the change will not happen overnight, this is the so-called "inertia" effect.

2 See Vol. Adage goes, "price before volume", "astronomical amount of days, in the amount of land" that is the "Volume is more important than the transaction price," this truth, because it can determine the volume sold and the subsequent stock price movements. In general, the process of rising stock volume should be some amplification, because the only way to maintain its original trend. If the stock rise as the moving speed of the train, then volume is the power train, stock rise is like the train going uphill, there is no motivation is totally unacceptable. The fall is like the train on the decline, without much motivation or simply do not need power, because at this time has played a tremendous role in inertia. As in June 2001, Shanghai stock market reached its peak as 2245 points, the volume will not enlarge, incremental funding is no longer enter the market, turnover also began to shrink, suggesting that capital began to flee, indexes do so without hesitation or the reason? This fall may have been dropped to 1349 points, almost exhausted the outcome of years of the bull market. Which was also in 1350 at around the two cities are significantly larger volume, indicating that incremental funding began to counter the stock market index was able to he turned up.

3 look at averages, namely, pay close attention to the trend of moving averages. Generally speaking, the stock rose in the long run, if 5, MA 10, MA, under wear should heighten our vigilance. If the 10-day moving average 30 days to wear under the MA, you should consider selling the stock. The U-turn when 30-day moving average down when the leave should be decisive, whether you are a loss or a profit at this time. Here Investors are cautioned that, if you are in the first moving average Sicha did not flee when the stock is likely to have an opportunity to Fanchou, when tape K-line shape will form a double-headed or double top, this time is the last chance for investors. On the contrary, if the stock decline in the long run, such as occurs 5 to wear on the 10th day moving average line, it should be regarded as a better short-term selling points, but if the 10-day moving average line to wear 30, may be regarded as the long-term buying point.
Above stresses the "three-see" are complementary, "second look" and "a look" absolutely does not work, more importantly, in addition to disk "3 see", the particular attention to the macroeconomic side and policy surface changes, absolutely irreversible policy of moving surfaces, take鸡蛋碰石�

Open hours depend on high or low open-open, it expressed the wishes of the market is up or down shares the day of an expression. Secondly, in the opening half an hour can see the direction of price changes, generally speaking, if the stock opened too high, within half an hour may be down, if the stock price is too low to open half an hour on a possible pick-up. The third volume depends on the size, if not higher open down, and volume has been larger, the stock is likely to rise. The fourth look at stock prices, not only to look at price, depends on yesterday's closing price and today's opening price, today's high prices and low, Change margins, and so, in order to see what the current stock price are in position to see if it is in rising or declining, and whether there is to buy value.

Generally speaking, the decline in the stock should not rush to buy, we have to wait to buy it and then stabilized. Rising stock can buy, but be careful not to be driven and controlled by it. Through the sale of comparison of how many hands, and can be seen to be the strength of the buyer or the seller forces big big, if the seller is greater than the strength of the buyer, it is best not to buy.

Depends on the number of hours to read the tape is now in hand in hand with the current total number. Is seeking to show that the number of automated transactions, just the size of that volume, if a large number of successive transactions, then there are a lot of people are buying and selling stock, it is noteworthy. And if a half-day also will buy it, it is unlikely to be a good stock. Is now in hand is the total number of total number of hands, the total number of hands, also known as volume, and sometimes it is more important than the price indicators. Hand and circulation of the total number of shares than is called turnover, it shows how many shareholders who bought that day, the high turnover that many people trading stock, stock up easily. If it is not just the listing of new shares, there was extraordinary turnover (more than 50 percent), its shares are often dropped in the second day, so it is best not to buy.

Stocks rose too high and the stock market operation to ship a strategy, because a formal announcement before the good people tend to be informed in advance, the main force will lift stock prices, to small retail investors to take advantage of good public attendance when the absorption of the machines, selling profit, stock prices lost the main financial support, so go soft.

In general, customers are in good short-term cash profits to avoid the risk of price declines, or by withdrawing it when the stock price adjustment to other stocks in the fund to intervene in order to win the time difference. From the midline, if the positive part of "one-off transaction", such as the sale of assets, etc., then the share price peaked mainly at this time in order to out better. If the good remain in effect, such as asset restructuring, project inputs, etc., the share price tends to emphasize the following, we might continue to hold. (Stock grasp shrimp)