Monday, November 1, 2010

How do financial markets at the bottom

 Sharp rise in gold or stocks are starting from the bottom, the so-called bottom when there is a bottoming process, the purpose is to adjust the moving average to bottom or clean chips called only when the market selling on the stock reached a minimal level, or because the information leading to the market on the stock market desperate to escape, and when there are new forces involved in the formation of the bottom is possible, so to see from the chart, a reduced form in the narrow range volume, and the other is the huge drop form, put the bottom of the formation can produce a strong rising market.

There are seven combat in the bottom of the form, according to morphological classification, regardless of any form are subject to the EMA system, transaction the amount of co-bonding or short-term moving average in the long-term moving average below the moving average described in the bottom, while the volume reduced without a decrease or do not have a heavy volume during the course of a sharp fall far from the bottom to the bottom of a breakthrough is often caused by the message, but it is constructed through the time and form, the following discussion on separately to the bottom of the seven forms.
1, platform at the end: (stocks / sinks) of 5-day moving average price of flat plate near the consecutive three days, forcing 5 line and 10-day moving average, or 5 lines formed Alice Jin Cha, 10-day moving average rate slows down, the specific requirements of the first day of three days in a small Yinxian received the next day received a small positive or small negative, the third day of closing Xiao-yang, the overall look at three K line is a translation.
2, Harbour month: it is the first day of the specific requirements or large Yinxian received in Yin Xian, the second, the third form of revenue increased by a small positive or Cross Star and the three-day trends in large volumes of evidence. Yinxian is like a big ship sank, but was strong support at the bottom, and its decline over the rise of energy to maintain it, so if that system is to average on the midline promising indicators, there is no reason to believe that the suspension of large Yinxian is the market, should consider this is the main result of deliberately suppressed, so this situation can be considered a new round of prices of the rising sun.
3, Yang Yin folder: the two sandwiched a Yinxian Yang Xian,bailey UGG boots, meaning that the first day (stock / exchange) price surge is suppressed, the next day forced to adjust,cheap UGG boots, but on the third FN involved again, so this increase is more reliable, the market outlook for the better opportunities.
4, average stars: in the bottom of the average system just fix up the time, often near the average income of a yin or yang Cross star,UGG boots cheap, which is a kind of long and short the balance of power said, but in the bottom of the second YORK easy rebound or break up, this is an eye-catching form.
5, three-bing: The average near or below the lower opening three consecutive high-income small Yang Xian, and has gradually enlarged the amount of the trend indicates a small scale to absorb funds in every end, investors will be bullish.
6, bottom line: lower opening day of the opening below the moving average, which closed in the moving average above,UGG boots clearance, this is the main market and to further do to do it deliberately, according to the principle of inertia should be bullish market outlook.
7, long tail line: after the opening day, the stock market higher volume, but then inexplicably was long the main force pulled up, leaving Under the shadow of a long line, which is done by a rebound of funds involved in the signal, as long as the next pick up road space is very significant rise.
form constructed from the bottom, but it played a critical volume role, whether it is shrinkage Ye Hao, heavy volume, it is all there must be a law, for example, Zhu Bo shrinkage, moderate to heavy volume this is a good quantitative process, but if that had heavy volume of irregular, or at a time when a large volume but did not rise much, regardless of any form has become a down shift possible.

No comments:

Post a Comment