The market trend is divided into building bottom, rising, building head and down four stages.
These patterns can be judged by looking at a trend chart such as the commonly used K-plot.
1. The form of the bottom is generally triple bottom, head and shoulder bottom, double bottom (W bottom) and semicircle bottom (pot bottom).
The larger the lateral building area at the bottom, the more momentum the rise has accumulated, and the larger the rise.
In this stage, should carry on the low buy high sell interval operation, if conservative can give up the profit opportunity of this stage, move to the next stage.
2. When the exchange rate breaks the neck line at the bottom of the early stage, it indicates the beginning of an upward trend, and the height of the rise is generally the vertical height at the bottom of the early stage.
This STAGE IS LIKE THE MAIN stage of market rise, the range is large and the speed is fast, although it lasts for a short time, but it can immediately launch a new round of up again as long as the upward pressure is slightly REfiled.
The initial period of this stage should be the best time for us to chase and buy bravely.
The upswing is where we make most of our money.
3. The head building stage is the later stage of the ascending stage.
At this time, the market trend attempts to push up again, but the bulls can not break through the previous wave of highs with all their strength, and finally break down the neck line to complete the head and enter the falling phase.
At this stage, the early medium – and long-term bill should be taken, short – term can try to do fast in fast out of the interval operation.
4, the falling stage is the same as the rising stage, but in the opposite direction.
At this stage, people are distracted, the exchange rate is unable to support, and the decline rate is rapid until the momentum is lost and the bottom stage is reached.
Fall stage should be determined to kill the fall, the quick stop loss, otherwise the loss is huge.
