Category: Money Tips Date: 2007-06-18
"Head and shoulders bottom" pattern in the K-line analysis, which plays an important position, a truly perfect and effective after the formation of the shape, energy, enormous. Therefore, the ability to correctly understand the "head and shoulders bottom" shape, and timely intervention of the investors, often can be more profitable.
Moderator: In the course of the recent broad market rally, many stocks have formed at the bottom of a wide variety of forms. Zhao readers to call our editorial department and ask Textile City (600.79 thousand quotes, information, advice, and more) has been a breakthrough at the end of the first shoulder neckline, can we buy? In this issue, we have invited senior members of Mr. Zhang Hongji securities to introduce the head and shoulder at the end of the application form.
Tongzhou District of Beijing shareholders Liu: head and shoulders bottom / top shape, what features?
Zhang Q: head and shoulders head and shoulders top and bottom is a high frequency, and high reliability as a reversal pattern. At the end of the head and shoulders pattern, at least there will be five times partially reverse movement, head and shoulder at the end of three points in turn called the local at the end of the left shoulder, bottom and right shoulder, two high-point connection, said rebound neckline, the line break shall be the official start of a new trend. Head and shoulders top with similar, but in the opposite direction only.
It has created the principle is that when the stock after a long decline, finally appeared in the low one rebound, stating that the buyer has already begun to take resistance. As the downward trend has not changed, so stock prices fell twice, the second drop new lows and the panic selling at the same time quickly rebounded, reflecting the decline of energy has been fully released. The third failed to meet his head down low and rebound that was supported, stating that the buyer forces have the upper hand, the trend has been reversed trend. When the formation of two high rebound connection (that is, neckline) are high-volume breakout, the show has been multi-control the situation and establish an upward trend.
Haidian District, Beijing shareholders Chen: how to find it buy point?
Zhang remember: the traditional approach is to break up when the stock price neckline spaces and withdraw sword confirmed, could be that the form is valid, a time to buy, this method is suitable for sound investors. However, in practice, the trend of a stronger stock and will not appear withdraw sword to confirm, so radical as long as the stock closed at neckline investors outside the 3% or more, they maintain that form has been completed, and then buy.
Zhao Chaoyang District, Beijing shareholders: Textile City is an effective head and shoulders bottom patterns do, and now able to buy?
Zhang Q: From the morphological point of view, Textile City, the trend of the last 4 months, is a standard head and shoulders bottom pattern. In addition, it can be judged from the volume it on. In general, head and shoulders bottom pattern, the two shoulders of the volume is gradually increasing, indicating that the process fell from a gradual increase in the strength of the buyer. On the contrary, for the head and shoulders pattern, the volume gradually diminishing its effectiveness when the view that higher. We have seen Textile City in the last 4 months the bottom of the finishing process, the volume gradually enlarged head and shoulder at the end of full compliance with the technical requirements, so its reliability is higher.
At present, the textile city's share price has broken through the neckline bit 3 yuan, breaking the margin well in excess of 3%, further confirmed the validity of the form, so I personally believe that a timely follow-up of its first technical objective of bits should be 3.6 yuan line.
