Category: Money Tips Date: 2006-12-12
"Rift Valley reversal" form at the bottom is a strong reversal signal that the downward trend in stock prices has been completely reversed, and investors can buy Jiancang decisively.
This K-line combination of form and the gap theory, the "island reversal" patterns are similar, but the "island reversal" of the technical constraints are more strict and require the location of the two gaps in the region must be at the same level. Since the actual evolution of the stock market, there appeared such a relatively small number of standard forms, therefore, lead to "island reversal" form of practical value greatly reduced. The "rift inversion" is to retain some of its real practical to reduce the technical requirements are too stringent, thus enhancing the effect of actual use. In the technical requirements, "Rift Valley reversal" form and the "island reversal" form the biggest difference is that the former does not require the two the gap is in the same horizontal position.
Technical features: 1. Stock or index within a short time two gapped gap, the two gaps in the opposite direction, of which the first one is gapped down gap, then a gapped upward gap. 2. Gapped down there with the gap does not need heavy volume, while the gapped upward gap appears when there Liangnengpeige. 3. The interval between the two gaps can not be long, a maximum of 10 business days, usually the shorter the time interval, the stronger the inversion strength, the ideal interval is 2-4 business days. 4. The gap between the two is allowed a certain gap between high and low, relatively speaking, a gap after the gap lower than the previous one is better; if, after a gap above the previous gap, they should note that differences between the two price increases, for the too much scope for differences in the shape to be vigilant.
Investment examples: Feile Audio-Visual in July had been out of the ups and downs of the stock market, stock prices in the July 21 the formation of gapped down the gap, in the July 25 the formation of gapped upward gap, two gaps although not at the same level position, but the reversal of the outbreak is still a strong upward Zhang Sheng Quotes.
Note the main points: In general, the two gaps between the stock price volatility in the form of low-hovering is the best. Oscillation may occur during certain movements, but as long as oscillation amplitude is not, does not affect the morphology of the establishment. However, if the gap between the two share prices rose market, investors need to caution, when the meaning of the form of tips will be less.
