Morphological analysis criteria

Source: Internet
Author: User
Form AnalysisYestechnology AnalysisAnd form AnalysisThe results are often amazing. What is form? AnalysisWhat about it? We all know that the price movement track shows a certain trend, but this trend is not a straight line, but a twists and turns, there is a fixed range of price fluctuations within a certain period of time, the track that records the price movement forms a more regular chart. Because Stock MarketThe price is formed by transactions between the multiple empty sides. Therefore, the formation of a chart often implies a change in the power of both sides in this region or a change in transactions. Therefore AnalysisThen we can grasp the changes in the power of the air and make the right InvestmentDecision-making. In fact, these forms are an "episode" in the trend change, and it is often unexpected to grasp the "episode" correctly. Therefore, focus on morphology AnalysisPair InvestmentIs very important.

There are two types of patterns based on the trend changes: one is that the original trend will continue to run along the original trend after a certain form, which is called the continuity form; the other is that the original trend goes through a certain form and runs in the opposite direction of the original trend. Continuity patterns generally include: triangle (divided into symmetric triangle, rising triangle, falling triangle), rectangle (also known as box or parallelogram), and flag (divided into ascending and descending flag), wedge shape, etc.; reverse shape is generally divided into: V-shaped (inverted V-shaped), double bottom (double top), three bottom (three top), round bottom (dome shape), head and shoulder (head and shoulder ). Because there are many opportunities to appear on the top of the horn, it can also be called reverse form. We AnalysisThe main purpose of these forms is to determine when the form will be broken through and what scope will be achieved after the breakthrough. If you can grasp the breakthrough opportunities in a timely and correct manner for transactions, the results will often get twice the result with half the effort. This is because it takes time to form any form. When constructing a form, the price change area is usually small. At this time, if you go into the transaction, you won't be able to earn much, it is easy to lose money, and it is also a waste of time, or even a waste of other InvestmentOpportunity. Therefore, if you can grasp the form when to break through and take countermeasures, it will be both time-saving and good. InvestmentEffect.

Criterion 1

Form AnalysisIt should be clear that the division of reverse and continuity forms is not absolute, but a relative division method. Because the criteria of the classification form are determined by the results of trend changes, which are flexible and not fixed and can be determined afterwards. The reason why triangles and rectangles are classified as continuous shapes is that most of them appear in the course of trending. However, there is a similar situation at the top of the stock price. For example, if a stock needs to be continuously pulled up and a symmetric triangle form is formed at a high position, it is reasonable to say that it will continue to make breakthroughs and run along the original trend, however, the actual situation is a rapid decline from a high position. This symmetric triangle can only be called a reverse shape, and cannot be treated as a continuous shape. Therefore, we must be clear that there is a certain degree of flexibility to divide the form, and we should not stick to the dogma.

Criterion 2

In progress AnalysisMust be combined with the transaction volume. The formation of each form is the result of a multi-empty contest. Therefore, the transaction volume in each form is generally subject to certain change requirements. If the transaction volume does not meet these requirements, it means that this form will change. For example, the general transaction volume model of the head and shoulders is the volume of the left shoulder and the volume of the head will certainly be greater than the volume of the right shoulder. If the transaction volume on the right shoulder is greater than that on the left shoulder or the head, the price will definitely be pushed to a new height, so that the price area will not be regarded as the top shoulder in any case. Each form has its own transaction volume model. AnalysisPay attention to the changes in transaction volume. Only in this way can we confirm a certain form and take appropriate measures. InvestmentPolicy.

Criterion 3

Form AnalysisIt is necessary to know the measurement method of the price operation amplitude after each form breakthrough, for example, the measurement amplitude of a triangle is the vertical distance of the vertices to the end side, the measurement range of the dome is generally the vertical distance from the dome to the diameter, or the half diameter, while the breakthrough measurement target of the head and shoulder is generally the vertical distance from the vertex to the top line. However, we also need to pay attention to another rule that the distance between these measurements should be better compared with the magnitude of the trend before the formation of the form, and then select a smaller distance as the minimum price change after the breakthrough, this must be noted because the results are often more accurate.

Criterion 4

Form individual stocks AnalysisTo determine the form breakthrough based on the market trend. In general, when the general trend is in a bull market, individual stocks often make breakthroughs in an upward direction, which is more effective and the breakthrough increase is also considerable. However, individual stocks often make a downward breakthrough in a false manner, or, although it is a real breakthrough, but the scope is limited. when the market is in a bear market, the breakthrough of individual stocks is often a false breakthrough, the breakthrough is often effective, and the space for decline is large. Therefore, pay attention to the relationship between these individual stocks and the general trend, so as to adopt the correct trading method.

Criterion 5

Making breakthroughs in individual stocks AnalysisPay attention to the changes in quantity. In general, individual stocks need a large amount of cooperation to break through a certain form of upward breakthrough, while downward breakthrough generally does not require too much cooperation. However, sometimes the individual stocks will generate a huge volume (relatively speaking) for an upward breakthrough, which often implies that an upward breakthrough may fail. Because too many of them often mean a huge volume to be thrown after the breakthrough, this breakthrough is just to attract followers to enter the market, so that the market's main force can send goods or escape. In this case, you should pay attention to the situations where the above-mentioned breakthroughs are huge. Instead of blindly following up, you should try to get out of the game. However, after a downward breakthrough, the transaction volume declined, but the general transaction volume for the second or third day increased the price, which often meant a false breakthrough, but wanted to clear some floating funding. Therefore, after a breakthrough, pay attention to the changes in volume. We can often tell whether the breakthrough is a fake line or a real breakthrough.

Criterion 6

After determining whether individual stocks have broken through, the "three-day method" can be used to determine whether a breakthrough is a real breakthrough or a false breakthrough. In general, if stocks keep up within three days after a breakthrough, it is considered as a real breakthrough. We often notice this situation. The second day after the breakthrough will be confirmed, and the third day will definitely be pulled up. This can be regarded as a real breakthrough, or else it can be regarded as a false breakthrough. When the share price breaks down, such as stocks rebounded on the second day, but fell again on the third day, it can be considered as a real breakthrough, or else it can be considered as a false breakthrough.

Guideline 7

Making breakthroughs AnalysisBut also pay attention to some breakthroughs caused by good news. Such a breakthrough can be judged by the "two-day method. For example, when the message comes out, the stock price will go up and break through, but the fall on the second day will often be ineffective. If the news goes out, the stock price will fall, but the pull will continue on the second day, which means that the profit margin has little impact. Therefore, the breakthrough caused by messages is often determined by the actual situation.

Contact Us

The content source of this page is from Internet, which doesn't represent Alibaba Cloud's opinion; products and services mentioned on that page don't have any relationship with Alibaba Cloud. If the content of the page makes you feel confusing, please write us an email, we will handle the problem within 5 days after receiving your email.

If you find any instances of plagiarism from the community, please send an email to: info-contact@alibabacloud.com and provide relevant evidence. A staff member will contact you within 5 working days.

A Free Trial That Lets You Build Big!

Start building with 50+ products and up to 12 months usage for Elastic Compute Service

  • Sales Support

    1 on 1 presale consultation

  • After-Sales Support

    24/7 Technical Support 6 Free Tickets per Quarter Faster Response

  • Alibaba Cloud offers highly flexible support services tailored to meet your exact needs.