Category: Money Tips Date: 2006-09-10
Another form of the right triangle is the descending triangle. In the Shanghai stock market, we often see this indicated that the decline may be technical graphics.
Morphological Description:
The bottom line is horizontal right-angled triangle. Said the low share price correction are the same price on the stock needs to form a support line. Slash at the bottom line at the top, from left to right under the slope, indicating the high price point of sub-movements to lower than the previous one, reflecting the supply of stock shipments to accelerate the speed of the power to form a descending triangle pattern
Market down triangle meaning:
In the long-short contest in the formation of a price, the price has the following characteristics, that is, once the stock price from the back of this there will be a rebound to form the buyer's stock demand to support an belt, while the stock rebounded and had met with selling pressure after again back to the buyer support straps. Rebound high again, do not advance a high point, the seller of the selling pressure quickly each time pressing position to the buyer. This pressure - rebound - and then the downward pressure poised posture, and gradually disintegrate the buyer morale, producing more and more killing killing more than market conditions, indicating the final collapse of the buyer's front. This graph is often the main market for the clearance to ship the final purpose of fierce price pressure, the Shanghai stock market crash of some of this trend is often graphic.
Descending triangle judged points:
1, down triangle in general more common in the order form, the ultimate direction of their movements is very easy to distinguish - descending triangle indicates the decline in stock prices. According to statistics, in contrast to an exception to the phenomenon of less than 15%.
2, down triangles in general is gradually decreasing volume, until the level of the bottom line has been broken, and the ascending triangle obvious difference is descending triangle break down when the volume does not require the co-ordination, they can be immeasurable space or, of course, if the volume Zoom decreased momentum increases.
3, descending triangle break up if the contrary, you must come to the big volume to verify: But it breaks down, the stock should be a pick-up, if the pick-up blocked on the bottom line was established, under the form of meaning, or graphics fail
Edited in the gold-line
