Sunday, March 9, 2008

Conclude quantity

" measure rate of exchange in advance " is a important conclusion that numerous investor reaches in long-term practice. Turn open former historical tendency , may discover in the change of the quotations of bull market , present any change regardless of share price index , conclude the record of quantity but increasing progressively continuously , go to bull market termination, closing the business measure meeting, increase progressively stagnation since increasing progressively , till tend to to reduce.
Investor must know , conclude the relation between quantity, supply-demand relationship and the stock market in the stock market, only have grasped the contact between this 3 persons , may just make the correct judgment of general interest for share price tendency. Because in the different stage of price change tendency, price is for supply-demand relationship and conclude the influence of quantity is also different. So, must divide stage to analyse.
See period with steady price first. Generally speaking, is during this , supply-demand relationship is in tendency the state of force enemy, it is little to conclude quantity now to compare. Because: Under the condition with steady price, it is identical to see in the general interest on fund strength many persons and that see to leave empty, who is also not sure the change tendency of the share price of next step. Therefore it is not large to conclude quantity, just because quantity is not large, so, trade quantity will not also produce too big influence for share price. Seeing price again is declining period. The constant condition in other factor takes off , price the steady tendency that is declining to price transformation, is because of nominal is larger than is bull. As share price is declining , closing the business to measure meeting magnify gradually. Closing the business quantity magnify can again drive share price conversely is declining , because share price is declining further, bull would just buy in. Finally, see period raised on price. Under the constant condition of other factor, price is stabilized to the transformation of price rising tendency , is since is bull to be larger than nominal. Along with the rising of share price, closing the business to measure meeting magnify gradually. Closing the business quantity magnify can again drive the rising of share price conversely. Because of share price further rising, nominal would be just bought in.
" measure price have the inner contact of interaction " can but often occur the case of " measure price deviate from " in actual life. Deviate from with quantity price , if being the rising of continuity , quantity does not increase , or increasing tendency, tend to to postpone , deserve to be been careful , especially pawn share price continuous falling, quantity increases on the contrary, this is to sell signal. If price falls to measure to tend to, slows down to slow , at the time of rebound, quantity tends to on the contrary to fall , even measure when the second continued bullet of 3 days rises to be in atrophy state still, this expresses buying person seldom, it is insufficient to accept the task of force, short line one has to profit , surely again again arouse is declining.

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