Trading strategy: Intercept reversal technology signals must also be carefully deciphered

Source: Internet
Author: User
Trading strategy: Intercepting reversal technology signals must also be carefully deciphered 2015-03-31 13:56:03

  How to determine the appearance of reversal technology signals:

In terms of technical performance, there are five technical manifestations of inversion, namely island inversion, jump-space inversion, three-lowest (high) price reversal, three-closing price reversal, and SLR rotation. One of the island-type reversal refers to the performance of two transactions, in the jump empty high new highs or low jump to create a new new lows after the yin and yang, and then the opposite trend, on behalf of the reversal of market trends, this is the most obvious trend change hint; The jump-gap reversal is the trend of jumping openings, But at the bottom is Changyang, indicating the market twist; the three lowest (high) price reversal refers to a day when the closing price is lower (higher) than the first three trades the lowest (highest price), which is also a reversal of the signal, the three closing price reversal is similar; a SLR is a form of long upper shadow or lower shadow that is left in a large price Its closing price is lower than (above) the previous trade, showing the reversal characteristics of the market order.

It should be pointed out that the market cannot be judged solely on the above-mentioned technical forms. The appearance of such a pattern must be that the market is already at a significant high or low, and that this pattern is meaningless in the general position. At the same time can not judge the appearance of the above, the reversal began, sometimes the market will repeatedly appear a number of reversal signals, it is only to remind investors that the market has entered a trend reversal, when the market should pay attention to control risks when the high, and in the low is to remind investors to pay attention to the bottom is forming.

Reversal trend is often for investors to determine the market trend has a very good hint, but for a stock, because the degree of financial control is relatively deep, this form sometimes for the operation of the actual role is not large.

Trading strategy: Intercept reversal technology signals must also be carefully deciphered

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