At the top and bottom of the technical indicators to determine Money Tips

Category: Money tips Release Date: 2006-12-05

At the top and bottom of the judgments of the operations in the stock market is extremely important, as a successful stock market investors, of course, want to throw at the top of the stock, buying stocks at the bottom, this is what our investors to dream of things that many investors are want to have some opportunity to buy stocks at the bottom, in the tape at the top can throw away all of the shares. But in fact, there are a number of top and bottom of the time it is difficult to perception. The main reason is that when the time appears at the top of regular and technical correction together, and sometimes into the stock and share prices to a certain There are high, tend to be high again after adjusting upward trend, if the over-sensitive to the broad market or individual stocks may not necessarily be profitable, therefore, right at the top and bottom of the short-term judgments have different requirements.

First, from the second high (low) of tape and individual stocks to determine the top and bottom of

Sometimes more difficult in the short-term top and bottom of the right to judge, there are many situations in the body is really at the top (bottom) and I do not know the top (bottom) the situation, and sometimes investors that the tape has reached the top, but in many buying intervention, the stock is still hit a new high, this situation can easily occur in the era of the great bull market, but also a number of technical people who were often rising desperately on his way to sing an important reason for empty. In fact, the market's rise and fall and the power of long and short positions is closely related to the formation of top and bottom of the two forces is often the major turning point in the moment.

In addition to the use of wave theory, and other indicators to determine the market's bottom and top of the other, more common method is the use of technology, the second-highest point on the form to determine the top and bottom of the method. For example, the Shanghai stock market stocks in 98 years, June 4, after rising to 1423 points, it seems difficult to judge the short-term bottom, but after correction, the broad market did not hit a new high of 1423 points, thus establishing the 1423 points at the top. Sometimes the bottom of the same is true of judgments, 98 stocks in August 18 after a continuous decline, finally dropping as 1043 points, although at the time there was a feeling of short-term bottoming out, but has not yet been confirmed by the second lowest, at a later tape and then rebounded to 1190 point, again dropped, but the broader market only after the broader market fell to 1072 points, a rising again, so that the short-term bottom of the index has been confirmed. From the Shanghai Composite Index peaked at 98 years, when the shape and the Shanghai Composite Index bottomed out in 98 years, the open state, it is clear to find that second high (low) points of the tape to determine the role of the top and bottom.

In theory, the reason will be a second peak could not break through the high point of the first situation, often of a long power begins to weaken, while suppressing the power of the short side will produce, in turn, when the short side of the continuous index pressure after a record low after the first, multi-start back, if the second low should not happen again, then the turning point will be resulting. This situation not only reflected in the broad market among the individual stocks are always in similar situations, particularly in the second high (low) points to determine the top and bottom of individual stocks often have a greater actual combat. For example, the Shanghai stock market's Gezhouba are duly listed in the 97 years of speculation, the share price from the 13.50 yuan has been fry 22.9 0 RMB, but its shares hover around 20 yuan in the past 16 trading days later, the unit in June 26 once want to new highs, but only on the stock to 21.20 yuan after touching down U-turn, the price can not be broken due to the previous high of 22.94 yuan to 22.90 yuan established for the top. Investors at 22.90 yuan, if not all of the stock, then throw if they can throw at 21.00 yuan, then how many there are greater benefits.

Second, the use of technical indicators to determine the top and bottom of the

In some cases, the technical indicators can be judged tape with the bottom and top of the individual stocks. In the technical indicators RSI (Relative Strength Index) is more commonly used to determine the top and bottom of the index, the relative strength index RSI (Relative Strength Index) indicator par with the KD a popular technical indicator. RSI from a specific period of time, changes in stock prices, projected prices in the future change in the direction of Change based on price range that the market is strong or weak. The indicator on the bottom and the top of that there are frequently more accurate judgments of the Department, and their common situation is that, when the stock price and the RSI is high, and formed a peak lower than a peak of two peaks, but this time, but the corresponding price is a peak than a peak height, is called the top departure. Stock up is the final failure of this movement, which is relatively strong sell signal. In contrast with this is the end of departure. RSI in the low rise in the formation of 2 followed by the bottom, while the stock still falling, this is the last one down or are close to the last one down, it can start Jiancang signal.

RSI indicator used to determine the top and bottom of the actual combat often have a greater significance, from the short-term point of view, and sometimes can be used to determine the bottom and top of the RSI. Such as the Shanghai stock market in 1997, up to 1510 points, the same day, RSI there is a clear departure from the top of the situation, the day the stock hit a new high, but RSI did not hit a new high, the day 5 and 10, strength indicators are at the 70 or so, so the situation with the RSI in the 92 or so a few days ago in sharp contrast, when look at technical indicators if so, should be shipped across the board. The Shanghai Composite Index peaked in May in 97 years, when the departure from the top of RSI can be clearly found it.

The RSI in determining the time at the bottom also has a certain degree of accuracy, such as the Shanghai stock market 98 years of tape once fell from 1300 points, 1043 points, in 98 years, August 18 under the broader market to touch 1043 points, the same day, RSI does not create a low, on the 6th day RSI is 14.42 for the 8.43,12 day RSI, and in August 17 broad market index for the 1070 points, on the 6th day RSI of 14.14 for the 7.94,12 day RSI, which deviate from the situation at the end of is also more difficult to determine whether the tape will enter the Ministry of the region in the end.

In addition to the technical indicators RSI indicators of broad market and individual stocks to determine the role of top and bottom, other indicators also have to determine the role of top and bottom. Such as ASI (vibration movements indicators), and KDJ (stochastic indicator) has this role in the KDJ indicators, many investors often mistakenly apply the technology, but in fact the function description of the technology also made it clear that when D% 70% or more, the market was oversold situation. If we do operate according to this indicator is the case, often the larger errors, which is particularly prone to occur in when a stock when the trend of strong, KD targets are likely to passivation was high, the stock is still higher in Europe. In fact, I believe that the use of KD indicators should be combined with the RSI indicator to determine the trend of individual stocks and the broader market, KD indicators to determine market's top and bottom of the process, has a strong point to the role.