Category: Money Tips Date: 2006-08-22
If you already understand the essence of the triangle, then the order is also very easy to identify the rectangular thing. Analyzing the meaning of rectangular finishing up a triangle with exactly the same, but each test a low stock price at the same level when they receive support, rather than as a triangle, as low and gradually move up.
Rectangles are often known as the stock box, meaning that stock prices seem to be locked up in a box inside a covered above, the following bottom line beyond which the stock back and forth between two layers of plywood campaign. If such a movement back and forth with a certain regularity, that is, when the turnover increased by amplification, falling turnover reduced, and as time goes by volume as a whole showed a narrowing trend, then this rectangle is more reliable.
Rectangles are often forced in the main body formed under the Xi Pan. Resistance line is above the level of the main pre-Xi Pan position, below the level of support lines extend disk volume is the bottom line. In the disk, we can sometimes see the stock price will be below the support line occasionally, but quickly returned to above the support line, this may be the main force of the market mentality wipe detection method. If a major support level below, the market is not further decline, which fully shows that the market sell-off is almost exhausted, can not afford to fall further.
Rectangle has a measure of growth, that is, break up when the rectangular, the smallest rise to the height of the rectangle itself, so much. This measure increases a kind of classical theory, it is in our stock market has little credibility remains to be seen. But one thing is certain, that a large rectangular shape is much more reliable than the smaller.
The ballot boxes back and forth in the stock price in the frequency of vibration can be much or as little, and it depends on market needs. The frequency of vibration of the more illustrate how the market more thoroughly cleaned, but remember, the vibration of the end must be accompanied by volume contraction.
In practice, complete the standard rectangle is not common that stock prices often finishing the last paragraph change, no longer has a large amplitude, but gradually died down, unable to meet the high point of the last high point, but low compared to the previous times slightly higher, this deformation pattern is more credible than the standard rectangle, as in the form of the end of the market has clearly expressed its will, it is clear adjustments to the end, about to choose our direction. Thus, the real breakthrough occurred in the neckline is not necessarily and only on purchase. Of course, this is the need for more detailed skills to read the tape.
Up to this, we have introduced four more reliable guaranteed profits, graphics, from the formation of the analysis point of view, they include the two forms and two at the top of the bottom of the form. For a full taste of the Essentials of morphological analysis for investors, form the graphic itself is not important, the important thing in graphics, the balance of power in the market long-short in the market sentiment, while the graphics market, but only the appearance of the state . Therefore, the master Essentials of morphological analysis, we can basically grasp the peculiar logic of the market, so we can "break a ruler the world."
