Category: Money Tips Date: 2007-04-25
Posed by the K-line trend in a variety of patterns, and the gap forms the most recognizable and very clear, and has a very strong function of measurement City. The lowest one-day closing price the previous day's highest bid even higher, that is, the formation of a gapped upward gap, gapped the other hand, compared with a downward gap. Gap can be divided into common gaps and functional gaps.
Common gaps:
Identify a gap is not an ordinary gap, first of all look at its emerging regional, when you look at the turnover of a gap with the situation. If the gap produced by finishing position in the stock area, that is, transaction-intensive areas, after a gap there is no obvious pattern as a support. Gap generated, the volume did not continue to enlarge, so that the gap is usually normal gap. There are three general gap, on the 5th will fill within the features. Investors can use this feature, in general the gap created after the reduction of chip level by level rallies. Waiting for the stock retreated to the gap location, re-enacted another round of trading strategies.
Functional gaps:
Such gaps are stronger than the average gap, more specific test city functions, can be divided into three categories:
1. Breakthrough gap. To determine whether the gap to break through the key to the gap created when the form its wake have to do background; Secondly, look at the gap resulting from the turnover of the day and the next few days whether it can continue to enlarge. If so, then we initially found it as a breakthrough gap. Breakthrough gap, after being elected, which means Quotes will be running towards the direction of the gap produces a period of time, stock prices will also extend a longer distance in the same direction. In other words, when we identified the gap as the breakthrough nature and should not move Chi Chou to obtain greater benefits. And should be noted that ground-breaking down the generation gap, there is the volume, you can also tie in with no volume. Its main feature is the gap are usually followed by a longer period of time to build a platform or transaction-intensive finishing area.
2. Measuring gap. Is also a kind of functional gap, also known as mid-gap, runaway gap, measurement gap, relay gap and so on. As the name suggests, the emergence of such a gap that has developed to the Quotes halfway. This gap after the election, and the prices will speed up the run and the short term will not cover. We have identified a gap in the nature of the measurement gap, we should pay special attention to these two specific: 1. Measuring the gap to appear away from the previous patterns; the gap appeared on the day, there must be large to do with the turnover. Often appears in a lengthy rally were unilateral, and the emergence of the middle gap, the stock will accelerate the rise, showing brisk rise in trend. Measuring the gap is confirmed, the test city of great significance, usually generated by measuring the gap minus the start position of the lowest point of bottom morphology of the distance, that is, from the measurement of the gap began to think the target price on the estimate. Such as Shanghai Story 96 December to 97 years, five also, and the prices generated by the development of mid-gap, less start form the lowest point 855 points, equivalent to 326, plus 1181, equivalent to 1507, this round of the actual apex Quotes 1510 points, the error is less than 0.5%. Just like 97 years since the September 23 1025 point-to-98 years, June 4 Mogao 1423 points, this round of Quotes, the measurement of the gap occurred point bit is 1228 points. We are still using the above method of calculation, a 1228 minus 1025 equals 203, along with 1228, equivalent to 1431 points, compared with the actual culmination of this round only a search Quote eight points, nine-month-long rally in the long the forecast error rate of less than 0.5%. Examples of individual stocks that we can look at the Beijing bridges, the Unit on 94 July 29 to form the lowest point of detection 3.28 yuan, followed by a long period of time to form a large latent bottom. And with 98 years of March 24 the formation of ground-breaking upward gap, point and is 9.8 yuan. 98 May 14, in conjunction with volume, but also half-way nature of the formation of an upward gap, point and 14.8 yuan, we use the 14.8 yuan minus 3.28 yuan, equivalent to 11.52 yuan, plus 14.8 yuan, equivalent to 26.32 yuan. The Unit on 98 August 28 peaked at 25.9 yuan, compared with predicted target bit short of the 0.42 yuan, the stock four years of operation in which nearly seven-fold increase, while the actual and forecast target bit error rate is less than 0.2 %.
3. Do gap, also known as the exhaustion gap. Appeared in a long-term uptrend or a downtrend in the end, this gap appeared the same day or next day, usually accompanied by a huge turnover and fierce price movements. To judge such a gap, we should first consider the turnover time is not particularly large, and predicted a period of time in the future will be impossible to even greater volume, we can determine the initial gap of the gap will likely be doing. If we can meet the K-line patterns and other technical analysis methods to conduct a comprehensive technical analysis, their accuracy will be greatly increased. Another feature of this gap is within a few days it is necessary to complement the characteristics of the gap to do after the election, which means the emergence of periodic big top, so investors in establishing the nature of such gaps, it should be clearing the hands of chips. Close the gap in the next drop occurs, no significant change in volume, nor will there be a huge amount of the transaction, which is an increase in transit to do with the main difference between the gap.
