Category: Money tips Release Date: 2007-06-29
1, has the only long time, hair will speed
If the price is number of days in a narrow range within the movements on the chart is like a construction site filled with the formation of a foundation pile picture, customary call-intensive areas, which experts say the technical support area, the built-up areas Once up to tend to the next breakthrough will result in an upward trend of flames or the mercury soaring to the decline in diarrhea. Involved in futures trading, we must pay attention to such opportunities.
Why is there such a breakthrough in dense areas of strong momentum it? Gu Yun: "build of both years, the hair must be quick." Like volcanoes, hot magma and the crust hard battle for power, the more depressed a long time, the greater the accumulation of energy, one broke out, moving to the H-yao. In the formation of built-up areas, the long-short fought fierce contention. Due to the narrow range, whether long or so short to do that in built-up areas are not profitable, lost the significance of unwinding. Therefore, no open positions must be piled up. Large or active collection, or wait for an opportunity to distribute. Intensive areas in horizontal development, and fine pregnant with storms on the horizon, the sea calm, under the undercurrents churn. Built-up areas along the time coordinate stretched to. Or down the greater the explosive force.
The balance of power was finally broken when the built-up areas, or to tumble washed up, there are three kinds of forces for the extrusion plate Bureau of waves:
First, the deployment of built-up areas has been a long time, traders got the upper hand does creep up, Meng overweight, follow up the victory;
Second, during the formation of built-up areas of the traders adhere to wait and see, see the trend became clear immediately follow suit. Junichi and the line;
Thirdly, in built-up areas misread the direction of people and some will stop indemnities, technical breakthrough in the situation to buy or sell even more fuel.
Due to a combination of three kinds of forces, resulting in built-up areas, after breaking the trend with a magnitude large, high speed characteristics. Moreover, this range, speed and built-up areas is proportional to the length of time coordinates.
Because built-up areas of deliberation takes time and patience to wait for a breakthrough. I wonder if the built-up areas up or down abruptly break into the market like a gambling, and drag will impatient, I feel the old division reactive power, to a numbness, the sudden large city in the opposite direction of the doom. It would be better first show from the sidelines to wait Lo Yat, the next good limit orders, broke through the plate Bureau will be homeopathic chase.
2, volume to contain price trend
Supply and demand, economic, political and other basic factors that affect the futures price is undoubtedly the main reason. But in the end, decided to ebb and flow of power or from the market's own trading activities. Lee then hit multi-factor, if you do not intervene in the market, and the prices will not be skyrocketing: Another major bad news, if not into selling, the price will be no by the fall. The buying and selling of the size of the daily volume and price change through the range can be reflected. Volume and price analysis, in essence, power and direction of analysis; volume is the driving force is the direction of price movements.
According to the general principles of volume and price analysis, price rise, while the volume surge, "Many hands make light," said the upward trend in the ascendant; price is still up, but volume is gradually reduced by means uptrend has come to a "highbrow" in point, this is a harbinger of big city back; the other hand, prices fell, while the volume surge, "to push everyone down the wall", show a downward trend since the beginning of FY; prices extended losses, but volume is less and less, reflecting the fall potential has been almost no entry would dare, this is the big city, the U-turn signal.
Trend, and there is no subjective top or bottom. The so-called top and bottom is determined by market trading activities, the objective formation. The so-called bottom is determined by the overall confidence of traders that is popular decision. If the price trend reached a high price and trading volume has reached a record amount of days, then shows a large number of traders entering the market, but also a strong optimistic and "always other able men", sky-high price must soon be refreshed.
Volume and price analysis can not be a simple contrast to today and yesterday, so that can not see continuity. The need for the past week, month, San Shiyue come from volume and price information for a detailed assessment of interactions by the volume and price changes in the past, see it now, combined with its past and present analysis of its future. At the same time be clear: the increase or decrease in volume does not change the direction of price fluctuations, but only to exacerbate or mitigate the price rise or fall. Since each transaction, including buying and selling, trading volume is the sum of sale and purchase agreement. Large volume does not mean more people to buy or sell more people. Rise is only stating that the buyer is willing to take high-priced deal, the downtrend is representing the seller is willing to take low-cost deal. Motivation and direction are two different things, not be confused, and only this way, volume and price analysis will forecast the market outlook for our right to bring a constructive and instructive.
