Category: Money tips Release Date: 2007-07-18
As we all know, the ship sailing in the water, there are two states: one moves and the boats sailing downstream.
When one moves to overcome the impact of water flow, this time a very tough boat to go, also need the engine to provide sufficient momentum to overcome the resistance to flow, in such circumstances, the ship is generally very difficult to fast-moving. But slightly less than the engine power, then, the ship will be of water will to downstream. By contrast, when the downstream when the boats sailing on the boat in the water under the impact of traveling will be very easy.
In actual combat, the stock price is equivalent to ships, while the average for the equivalent of water and a long-term average stock price direction and the same direction, the market will appear two kinds of situation in which the average arrangement of long and short arrangement. Whether up or down when the bull when the arrangement of short order, belong to the boats sailing downstream, because at this time the direction of price movement in the same direction with the moving average, usually meaning the tendency of the so-called lies. As the boats sailing at this time is so smooth, so stock up when the bull arranged very hot, short-arranged time, they fell is very fierce. This is because the boat down the river when the exercise of ease.
When the average stock price direction and the opposite direction, then are sailing against the current. For example: when the share price rose back to the normal block, as well as the way the share price fell by a rebound appeared to resist belong to sail against the current. When the stock is in an upward trend, because of the direction of average upward, held out in the following stock prices go up at this time if there is price correction, then the downward direction and upward moving average price in the opposite direction. At this point, when the callback is in place in the average price of natural re-up the promotion. By the same token, when the stock is in decline, if the rebound, then, once the stock rebounded after experiencing downward pressure moving average, it will surely meet with resistance, re-dropped.
MA of this principle is very simple, but can really understand it is not easy, but can be handy to use in actual combat it more difficult, and this requires us to have a deep technical analysis of the understanding and control of both the nature of technical analysis of Cai Xing.
In technical analysis, my favorite is the moving average, but I average as the main analytical tools.
Many people think that MA is a very simple thing, is not worth learning. But I have to tell you: "Your such a view is wrong! You did not understand the nature of technical analysis." In technical analysis, the more simple things are often more reliable, because the classical methods of analysis have existed for a long time, and in actual combat for many years been a wide range of authentication, if this method is useless, then it will not spread so far . If you use the wrong words, it can only show you the depth of the use and understanding of problems, the reason for error is caused because you did not really understand it, but did not really grasp it.
In reality, many people like to use some odd years old method of technical analysis, they even think that these things are the real martial arts Cheats. However, I must tell you, martial arts legend in the stories are fairy tales, in fact, is fictitious. If we allow the East is Red and the legendary boxing champion Mike Tyson contest, then I can certainly tell you that Tyson would blow the East is Red beat up somebody. Because the East is Red is a fiction, but Tyson is realistic.
