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How to judge the reversal and rebound


  Preface: Judgment rebound Forexrebateking forexrebateindonesia cashbackinforex a technique that Forex rebate kingvestors should master, but this has also been a problem for retail investors, in accordance with the rebound is not the bottom, is the bottom not rebound, rebound after the rebound is bound to continue to probe the bottom, and then a new low so there is also a rebound to ship, after the new low and then suck chips operation strategy large reversal should be constantly climbing higher, even if Pullback is no longer a new low a, the characteristics of the rebound rebound and reversal is a kind of rise, the simple difference is that the nature of the rebound rise short duration, up space amplitude small; and reversal nature of the rise is characterized by a longer duration, up space amplitude from these aspects of the nature of the rebound rise has the following characteristics: 1. rebound is generated only relying on technical indicators of support because it is relying on technical Indicators generated by the rise in the cashback forex to run to some important technical pressure levels can not form an effective upward breakthrough 2. rebound when the volume is not sustained increase in the stock market is the essence of capital movements, no new funds to intervene in the stop rebound, its rise in time span and space amplitude are not too large, and new funds to intervene in the degree mainly through the volume to study and judge when the rebound to reverse When the evolution, if accompanied by a moderate volume of stock index up, and the index retraced the volume, it indicates that the uptrend is in good condition, but the rebound market did not appear in the signs of effective volume amplification, the rebound market also lacks sustainability and the basis for qualitative change 3. The hot spots in the rally are generally held for a short period of time and cannot form the overall follow-up of the sector, and the overall rise of the sector is not too big, therefore, the hot spots in the rally do not have the basis to launch the market. Market risk must be effectively released after a long period of substantial decline in the market, the last round of rising market risk has been effectively released, the risk of late rise will be greatly reduced, which is the primary premise of a reversal of the market production line 2. When the fundamentals are good, the relaxed market environment will make the reversal of the market is relatively easy to form, and in the absence of fundamental support for the stock index most of the rise is the nature of the rebound 3. The markets overall price center of gravity is raised, the upside will be completely open and fleeting hotspots will not be able to form a real hotspot 4. there is an obvious bottom pattern born a round of medium-term reversal of the level of the market, there is a bottom pattern construction process, as to what kind of graphical form is not important, the important thing is the construction of the bottom pattern of the time span in general, a medium-term reversal of the graph of the construction of a longer period of time. Usually the bottom pattern adjacent to the two lows of the interval to more than a month 5. there is a continuous support of volume in the process of trend reversal upward, the volume shows the price up volume increase, the price down volume shrinkage, especially in the pressure level upward breakthrough, volume multiplied, and continuous release, especially in the second half of the reversal pattern is required to be accompanied by a gradual increase in volume, the more ideal with the volume, the trend reversal The more ideal the volume and price match, the stronger the reliability of the trend reversal three, the necessary elements of the reversal pattern in the broader market or stock technical analysis, the trend is very important to do a form analysis of a job in general, price patterns can be simply divided into two major types, namely, reversal patterns and sustained patterns two types of patterns have very different technical meanings, reversal patterns show that the current analysis of the market trend is or will be an important turn, In the trend will occur in the direction of change; while the continued form indicates that the market trend in the current process of change in the form will not change, the original trend and direction will continue, it may only be a temporary rest process, the previous trend in the overbought or oversold phenomenon through the finishing form to be properly corrected although the analysis of the two forms have strong practical value in the operation, but investors Concerned more or reversal pattern reversal pattern of more types, mainly including head and shoulders (top), triple bottom or multiple bottom (top), double bottom (top), V-shaped reversal and circular arc bottom (top) and several other patterns of these reversal pattern of the judgment criteria, although different, but contains some common features Therefore, accurate judgment and master these different reversal pattern before, need to understand the reversal pattern necessary The first point is that the market must be in this form before the existence of a clear trend quotes which is a prerequisite for judging any reversal pattern necessary if the analysis of the object in the form before the trend of the more ambiguous, the smaller the possibility of the pattern to become a reversal pattern investors should note that the trend quotes only contain an upward trend or downward trend of the two cases, for the horizontal oscillatory finishing The second point is that the most important trend line is effectively broken in the judgment of the reversal pattern, which means that a long time before the formation of the trend is about to reverse a very important signal from most of the more standard reversal pattern, in the completion of the entire process of the pattern, will be accompanied by the phenomenon of the previous pressure line or support line is effectively broken If the trend line has not been effectively broken when the pattern is nearing completion, the pattern is likely to evolve into a longer-term consolidation pattern even if the main trend line is broken, but if it is broken late, it will not normally be reversed immediately after the end of the pattern, it is more likely that the original uptrend or downtrend will change to a sideways consolidation pattern. The emergence of sometimes only indicates the end of the previous trend, and does not guarantee that the new trend will immediately form the third point is that if the reversal pattern formed in the bottom position, then the pattern appears in the second half of the upward breakthrough is required to be accompanied by a gradual enlargement of volume volume often plays a key role in major resistance is broken, the more ideal with the volume, the stronger the reliability of either the broader market The more ideal the volume is, the more reliable it is, whether it is the general market or individual stocks, in the upward finishing pattern is coming to an end, the reversal trend shape is basically formed, most cases will appear at the same time policy or fundamental good to support the development of the market Finally, the greater the span and fluctuation of the reversal pattern, the greater the reversal of the formation of the market movement is the greater the span and fluctuation of the pattern is distinguished by the volatility and time of these two factors in general, the future market The target level of the reversal pattern and the reversal of the magnitude of fluctuations and the gestation time of the pattern has a direct positive relationship if the gestation time of the pattern is long and the range of fluctuations is large, it may be followed by a larger trend-type market four, the rebound and reversal of the operational significance of the rebound and reversal of the market due to the nature of the difference, for investors will be related to the choice of operational focus in the rebound market, the focus of the investors operation Should be a light intervention, pay attention to the appearance of the selling signal; and in the reversal of the market, the investors operational focus is to adjust the position structure in a timely manner, focusing on the buy signal and holding principle Therefore, when the market rises, investors should use the rally or reversal operation is an important issue We can think about this issue from the markets operational process 1.The relationship between the rally and reversal The basic transformation of the rally and reversal The law: the bounce may not evolve into a reversal, but the reversal must be evolved from the bounce in the downtrend of most of the bounce is not possible to evolve into a reversal trend, often a flash in the pan and then back to running in the downtrend, the true nature of the reversal of the movement appeared very few times, but this small number of reversal is precisely in some investors do not hope that the bounce gradually evolved over the formation of the bounce The basic relationship between the bounce and the reversal guidelines: the bounce may not evolve into a reversal, but the reversal must be evolved from the bounce 2. Sell all the stocks in your hands; if the inverse elastic rise in the downtrend appears some evolution in line with the reversal trend, investors in the premise that the pre-intervention funds have been profitable can be appropriate in the buy point appears when the code to buy again, so as to grasp the possible future trend reversal five, trading operations in the correct application of investors in the securities market trading operations, like to analyze and predict the future price direction. Doing so can clarify the future direction of operations, but the downside is that once the wrong prediction is very likely to lead to decision-making errors of investors, resulting in irreparable losses for most investors, the best way to trade is to follow the trend of this investment concept has two meanings: first, to operate in accordance with the direction of the market trend; second, to operate in accordance with the current state of the market trend The core is to follow the general direction of the market trend, grasp the market trend changes in the short term use of the investment concept of follow the trend combined with the relationship between the rebound and reversal, investors in grasping market opportunities can do in and out, specific practices are as follows: 1. grasp the rebound of the hotspot in the downtrend operation, the market appears a plate led by the general market volume up investors can use a small amount of money to intervene in the plate Species, at this time the operating principle is to operate according to the inverse elasticity of the rise 2. reversal trend in the operation of the market after a long period of substantial decline, the market by the more sustained hot spot plate driven up, while the volume is also solid with the market rise this time, investors still want to rebound nature of the rise to operate and so on the later market trend operation has to reverse the evolution of the situation, such as the market again appear Buy signals, investors can add positions to buy once the reversal is confirmed, investors should operate to hold and buy mainly until the sign of the end of the medium-term trend to clear out of the market
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