What I'm going to talk to you about today is a finishing pattern, which is a triangle.
The main feature of the triangle pattern is:After a sharp ** or **, the amplitude of the fluctuation gradually begins to decreaseAfter that, select a new direction of operation
Ascending triangleFig
Whenever the stock price is rising, it will be under selling pressure when it reaches a certain position, forcing the stock price to go down.
However, due to the market's optimism about this **, there are many people who buy dips, so the stock price has not fallen to the last low and began to rise, even if the low point is getting higher and higher.
If you connect the highs of each ** wave with straight lines and lows, you can get an ascending triangle pattern.
Figure 5-1 Ascending triangle.
Generally speaking, in the process of forming an ascending triangle, the trading volume will continue to decrease, which is the result of the strength contest between the long and short sides.
The ascending triangle will choose to break through upwards in the end, but when it breaks up, it will generally carry a large volume, and if there is no volume, often such a breakthrough may be a false breakthrough, so be sure to pay attention to the traps.
The sooner the ascending triangle breaks out, the more momentum it will have.
The rising triangle that cannot be broken through is likely to be a bullish trap deliberately created by the main force for everyone to quietly ship.
Once the main force has achieved its goal, after the shipment is completed, such a pattern will not only not go uphill, but is likely to evolve into a double-bottom pattern. Once a double top stock price is formed, it is inevitable.
In most cases, an ascending triangle appears in a long-term upward trend of the stock price, and the stock price generally breaks out upwards after its occurrence, and in a few cases, the ascending triangle will also appear in a reversal pattern of the top and bottom.
If it appears at the high of the stock price, such as an increase of more than 70%, it indicates that the pattern at the top of the stock price has been completed, and a larger round of *** may begin next
Descending triangleFig
In the process of the stock price, it will start to fall to a certain price, connect the lows into a horizontal line, and each time the high point gradually moves down, and then connects into a line, it becomes a convergent descending triangle.
Figure 5-2 Descending triangle.
A descending triangle is a consolidation pattern in which it movesThe final direction is downwardIts morphological accuracy is high, and it rarely fails.
In actual combat, we should not rashly assume that the bottom has been formed because of the temporary stop effect, so as to miss the opportunity to escape.
Descending triangleWhen the tail end breaks down, the stock price will continue**, the bulls cannot gather strength, and the stock price will continue to decline for no reason.
When you break through the lower horizontal support line, it is time to sell **, and you must seize the opportunity to leave the market.
In a descending triangle pattern, many investors will think that it is a strong support when it has not broken below the horizontal support level, and thus identify the bottom pattern.
In fact, such a pattern cannot be rashly identified, and it is necessary to wait until the real bottom appears before entering the market.
In other triangle patterns, if the ** development to the tail end of the triangle still cannot be broken, the power of the long and short has been consumed, and the pattern will lose its original meaning.
But the descending triangle is an exceptionWhen the descending development value descends to the tail of the triangle, it will still continue
In general, although the ascending triangle and the descending triangle belong to the consolidation pattern, they generally have their regularity in both upward and downward directions, but there are special cases that will develop in opposite directions.
That is to say, the rising triangle may go down, when it breaks 3% to **, you should go out and wait for the situation to be clear, and when you break through to the top, if there is no amplification of the volume, you should not rush into the market, and when you also fall, the triangle may also break through upward.
When breaking to **, if there is a rebound, it is necessary to observe whether it is blocked below the level of the bottom line. Below the bottom line is a false rally, and if it breaks through 3% of the bottom line, then the graph fails.
In practice, some investors are too obsessed with the external morphological characteristics of the triangle, so they will misjudge in the judgment, but they can actually judge according to the original trend, and the accuracy rate is often higher.
Generally speaking, the amplitude, position, and volume of the consolidation pattern determine its operability. Normally, most of the consolidation patterns are less volatile and have no operational value, so investors are not suitable to intervene during the consolidation period. It is safer to wait for the finishing to finish and re-select the direction.
Okay students, that's all for today's content sharing!Happy learning!See you next time!