Sunday, March 9, 2008

Technical chart analysis law

Technical chart analysis is a kind
Price reflection
Price follows
History returns
According to first assumption, when technology is analysed , it is what change to need not pay attention to price, care about only how price changes. Second assumption borrows Newton mechanics first law " when the no any influence of outside force takes off , object can follow certain direction constant speed to go forward ", price has , is also to go forward along certain direction up to the influence that gets foreign factor as tangible object. History can recur have reflected the psychological reaction of market participator.

The basic principle of
Price is decided
The supply-demand relationship
Neglect price small fluctuation, the
The change tendency of price can change with the change of market supply-demand relationship. The basic method of technical analysis is in order to invest in the locus of behavior in the past, is basis, investigation is future or potential to invest in opportunity.

General tool has
1. K line
2. Conclude
3. Tendency
4. Move
5. Graph
6. Gap
7. Wave

What is
K line again weighs overcast positive line, wonderful line, red dark line or candle line, originate from the Japanese trade of Mi city of virtue river curtain residence times most early, process of more than 200 years develop enter , now, the technology of already applying extensively in securities market becomes the one of most basic method in technical analysis in analysis , so has formed a kind of technical analysis method that now has theory of complete form and analysis. K line basis calculation the difference of unit, divide into normally: Day K line, week K line, month K line and minute K line. It form depend on each calculation the 4 datas in unit,: The ceiling price, bottom price, closing price and price of opening quotation. When the price of opening quotation is lower than closing price, K line is positive line( use red expression normally); When the price of opening quotation is higher than closing price, K line is overcast line; When the price of opening quotation is equal to closing price, K line is called as cross star. When K line is positive line, the thin line part between ceiling price and closing price is called as the thin line part between shadow line, bottom price and the price of opening quotation to be called as next shadow line and the price of opening quotation between closing price is columnar to be called as entity.
Since the technique of painting of K line has included the 4 most basic datas, so, we may be from the type form of K line , may judge many, empty conditions in trade time. When the price of opening quotation is equal to bottom price, when closing price is equal to ceiling price, K line is called as the positive line of bareheaded smooth foot, it is strong to express that rise tendency; When the price of opening quotation is equal to ceiling price, when closing price is equal to bottom price, K line is called as overcast line, express that share price falls; When the price of opening quotation is equal to closing price, just last shadow line and next shadow line match , K line is called as big cross star, express leaving empty to be at war fiercely, tendency force enemy, rear city can often change , when cross star appears in the relatively high position of K line picture, this cross star is called as dusk star; When cross star appears in the relatively low position of K line picture, this cross star is called as stars at dawn. Synthesize the K form of line style, its representative leaves empty strength , have big and small differences, taking cross star as balanced point, positive line takes advantage for multi-party, big positive line is strong for multi-party strength, overcast line takes advantage to leave empty , big overcast line is strong to leave empty strength. What should pay attention is that investor when see K line, the meaning of single K line is not large, and it is just meaningful to make comparison with former K line.

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