The lines of support and resistance. The lines of resistance and support are the foundation of classical trend analysis, moreover, they are used to analyze the differences and shozhdeny some indicators. In a graphic analysis of all technical trend lines, models and figures are only ¾ combination of lines of resistance and support. The emergence of these lines is the next logical explanation.
The line connects the resistance of important market peaks or ridges. It occurs at a time when more buyers either can not or do not want to buy this valuable paper at higher prices. Simultaneously with each upward movement of prices is increasing the resistance of sellers and increased sales, which also has a downward pressure on prices. The trend upward stoporitsya and how depends on an invisible ceiling, to break that currently can not. If the bulls gather forces and bears weaken acumen, the price is likely to probet previous resistance level. Otherwise, prices will inevitably regress.
The line connects the important support minimums or bottom market. The emergence and existence of lines of support, directly opposite the lines of resistance. Here, the bulls switch places with the bears. Dealers are active players in the market, which pushed the price down, and buyers with ¾ the defending side. What would be more than passive sellers and buyers, the more likely it is that the line will support to break the price will go further down.
If the line of resistance and support line is strong and long enough withheld, depending on the combination creates various images and associations, which give the name of trend models and figures.
The lines of resistance and support better than through the best prices on the tops of emissions and nizah, and through the zone congestion pricing. Massive congestion pricing shows that it is the behavior of determining the number of traders changes direction, and the maximum emission prices in these places showed panic behavior of the weakest market participants, quickly closing its loss-making positions. The method of lines of resistance and support helps traders monitor changing trends ¾ her turn or acceleration. These levels are particularly important for the production of protective stop orders.
Support and resistance owe their existence past experiences of people etched in their memory. The memory of the past turn at this level encourages dealer make the purchase or sale. Their mass action and create a support and resistance. Bearing in mind that the price reached a certain level, have stopped falling and they went up, Throgmorton Street, probably will buy when prices are once again down to that level. Bearing in mind that the market, rising to a certain ridge, turned, Throgmorton Street will be inclined to sell and play for a fall, when prices are again close to the ridge.
Support and resistance exist because a lot of stockbroker sokrushayutsya about everything. Suffer Throgmorton Street, which kept losing position. They are just waiting to get out of the game, when the market will return to the level where they opened the position. Kruchinyatsya Throgmorton Street missed a chance to buy and they are waiting for a wind. These feelings are not very strong in a narrow range of gaming, where the fluctuations are small and the losers are not particularly uyazvleny. But breakthroughs abroad playing band cause acute pain and frustration.
When the market is kept at a level to become familiar dealer buying at the bottom of the range and sell at the top. When prices move up, sold for a fall bear muchimy pain; bulls same sadness, that does not have bought more. And both groups are waiting for opportunities to buy if you get a new ¾ chance, that is, when prices are close to previously known levels of support or resistance. By this decision, they pushed the emotions: some ¾ pain and other ¾ disappointing. Support consists of regrets about missed opportunities for bulls and bears the pain.
Resistance ¾ an area of pain bulls, bears and regrets the willingness of both groups to sell. When prices fall below the range of the game, it bought before the bulls see that lose money. They feel as trapped and waiting for recovery, just to get out of the game without a loss. Bears also grieve that poorly played down, and waiting time of recovery, to sell more. The pain of the bulls and bears unfortunate represent resistance ¾ ceiling above the market rates. The strength of support and resistance depends on the strength of massive emotions stockbroker.
The longer prices stay in the area of dense hatching, the stronger the emotional involvement of the bulls and bears in the area. When prices fall into it, it supports, and when raised to the ¾ resistance. Area dense shading can change their role, turning it into support, then in opposition.
The strength of each area of support or resistance is dependent on three factors: it is its length, height and volume of its transactions. Spatially, these parameters can be thought of as the length, height and width of the zone dense hatching.
The greater the length of support or resistance ¾ that is, the greater the length of time or the number of aged strikes, so it is stronger. The longer the duration of support and resistance, the more votes dealer "was filed in favor of the market situation, that is, the more the dealer meets this year. When two-week range is formed only minimal support or resistance when they dvuhmesyachnom range average power, because the players have time to adapt to the situation, but with two-year, cost-established as a standard, they are very high.
But the years of support and resistance levels are gradually fading. Defeated fly from the stock market game, and their successive newcomers have no emotional involvement in the old prices.
Support and resistance intensified whenever prices fall in these zones. Seeing that at some point prices are deployed, Throgmorton Street are beginning to rely on that turn, when prices again approaching that mark. This is a constancy of some exchanges and performed postulate of technical analysis, "history is repeating itself."
The greater height of the zone of support and resistance, so it is stronger. High resistance zone shows a strong reluctance and resistance to bear the recent increase in prices and weakening of the bulls. The height of the zone of support and resistance for each of the securities market is different: the height of this can vary from 1% to 7% or more of the level of prices. What a great height is a zone of support and resistance, the greater the pressure on the head of bears and bulls, respectively, it can stop.
The higher volume of transactions in the area of support and resistance, so it is stronger. The abundance of deals in the area of dense shading indicates activity stockbroker ¾ as a sign of their strong emotional involvement in this price level. The low level of transactions showed reluctant speculation dealer at a given price level ¾ it is a sign of weak support or resistance.
For the lines of resistance and support provided for the next game tactics.
1. When the trend in the direction which the dealer is close to the area of support or resistance, it is necessary to safeguard pridvinut suspension to the line of resistance or support. Defensive suspension ¾ this order to sell at a price below the market, if the dealer has played in raising, or purchase to close a short position at a price above the market, if the dealer is playing for a fall. This suspension will protect against losses if prices turned against the trend set by dealer. After reaching the area of support or resistance, the trend has shown its viability ¾ or weakness. If it forces to penetrate this zone, it is accelerating its progress, and your stiff suspension will not be affected. If the same tendency to bounce off support or resistance zone, then it has to show weakness. In this case, you will save you a stiff suspension of the profits.
2. The significance of support and resistance zones on the schedules of the more than longer time scale. For example, weekly schedules suschestvennee day. Competent dealer always leads to an analysis of several time scales based on a larger. If the trend holds weekly path through the free zone, hitting the daily developments in the area of least resistance is already significant. If the weekly charts are approaching the area of support or resistance, should reinforce the willingness to act.
3. Levels of support and resistance levels to help determine the order of protection against losses and protect profits. The lower boundary of the area of dense hatching ¾ this support. Buying and placing the suspension below this level, Throgmorton Street prepare a good foundation for the game to increase. A more cautious Throgmorton Street to buy after the price probyut level of resistance, and the suspension placed in the middle area of dense hatching. The true breakthrough ceiling should not end with the fall back in the game range. In a downtrend must act as well, but in the opposite direction.
Lines of trends. Graphs exchanges reflect actions bulls and bears. Bottom recessions show when bears vybilis of force, and the bulls have returned to power. Ridges ups show when vydohlis bulls, bears and entered into force. A straight line connecting two neighboring donyshka shows the direction of head bulls. Direct connecting two adjacent ridge, shows the direction of head bears. These are called the direct lines of trends. Stockbroker using them to identify areas of exchange.
When the price line growth trend of the growing hold over the bottom. When prices decline line trend hold over the ridges. Continuing this line in the future, you can identify the nearest point of purchase and sale.
The most important characteristic of the line trend ¾ angle of inclination: it points to the dominant stock group. If the trend line ustremlena up: it means that the tone set the bulls. In this case it is better to buy, placing a protective suspension below the trend. If the trend line points down, set the tone for the bear. So better to sell down protective suspension above the trend.
Line trends ¾ one of the oldest tools in the arsenal dealer, and is mostly a graphical tool for technical analysis. In the modern computer means to identify trends include moving averages, the difference grid system moving averages, which will be written below.
Many analysts hold the line through the trend ends ¾ maximums and minimums. It is better to hold them over the edge of areas of dense hatching, because they show the areas in which bought and sold a majority stockbroker. Technical analysis ¾ as would an opinion poll, and they are working to identify the mood of large segments and build a line across the boundary zone pushes to bias: there is a temptation to move the line to confirm their preconceived views. We need to monitor themselves and resist the temptation.
Panic plunge in prices ¾ sell it on the bottom desperate bulls, and panic buying in the area comb ¾ is close short positions bears ¾ causes lines zashkalivaniya that the graphs look like long "tail." It is therefore better to hold the line trends at the edges of zones of dense hatching, rather than the "tail" that little is reported on the exchange contingent ¾ except that of alarmist in its ranks.
The most important trend line ¾ sending its inclination. If the line goes up the hill ¾ means to wear bull market: you pick an opportunity to purchase. If the line goes downhill, the saddle bears, and we should pick the possibility of selling short. The significance of the line trend can be assessed by five factors: the scale of time, its length, the number of strokes of tangency, angle and volume of transactions.
The larger scale of time, the higher the significance of the line. The line on a weekly schedule reflects a more important trend than at the time, etc. What is the line length, so it is important. Short line shows the steps the crowd in a short period of time. Over a long line of action noted the crowd in a short period of time. The longer the line, the greater its inertia. The powerful bull market trend lines can stick a few years.
The more strokes relate to the line, so it is important. When prices are on the rise, they decline to trend line indicates a rally bulls. If prices returned to the line, then bounce off it ¾ means that the dominant stock exchange group usmirila rebels.
The line-sketch trend held only two or donyshka ridge. The emergence of a third point reinforces the importance of the line, while the fourth and fifth point to the strength of the dominant position of the Exchange Group.
Angle to the horizontal trend line reflecting the emotional mood of the dominant stock exchange group. Steep line ¾ sign of vigorous action. The relatively flat line ¾ sign nespeshnosti. A more gentle line typically stretches longer, as the tortoise in the race with the hare.
Is useful to measure the angle of each of the lines and record them on the schedule. Comparing angles, one can estimate the effect of exchange sentiments among the dominant groups. Most trend lines are under the same angle in the same market. Perhaps this is due to the behavior of the leading players, who settled in this market. Sometimes the price of escape from their trend. Then you can build a new, steeper line. It shows that the trend is gaining progress. Build a new, more steep line, it is necessary to suspend Condense: move it directly under the line of recent trends and draw with the advent of each new stroke. Breaking steep trend line is usually accompanied by a sharp turn in prices.
With the trend towards increased volume of transactions typically rises when prices rise, and less when they fall. This shows that the rises are attracted stockbroker than downs. When trend is observed: a volume increased by a recession and decreasing during the recovery. When prices return to trend line on a large extent, this is a sign of the growing number of rebels. If the volume increases, and prices are moving in the direction of trend lines, it is a sign of stability. If the volume is declining, while prices are removed from the line, this signal opsnosti for it. If the volume increases, and prices returned to the line trend, this signal a possible break through, which shows that the dominant stock exchange group loses commanding heights. But for the more confident tone, as many dealer, after the gap from the price should move a further 2-3%.
After the gap is very steep trend to higher prices often are increasing again, reaching the crest of the old and podbirayas to its already prolomlennoy bottom-line trends. This creates an almost ideal situation for sales on the decline: it is at the same time there is a double ridge, return to the old lines, and we can not rule out the difference of technical indicators that give a signal to play for a fall. In a downtrend should act like, but in the opposite direction.
For the lines of a trend following tactics game.
1. need to work towards the trend line: if it goes up, you should look for an opportunity to buy and to avoid the game down. If it goes down, you'll need to play the game and avoid demotion to increase.
2. Line trends ¾ either support or resistance. With the growth of prices should be given orders to buy near the line trend and protective suspension set below it. When trend is necessary to do the same, but in the opposite direction.
3. The steep trend line usually ends sharp prolomami. If the steepness of the line more than 45 degrees, you need to put the suspension on the trend line and its daily draw.
4. Prolomiv steep line, prices often return to the recent ridge on the shrunken size and variances to the technical indicators. This ¾ great opportunity to play for a fall. Reduced to its previous donyshka gap after the line trend creates conditions for the purchase with a relatively small risk.
The line connects the resistance of important market peaks or ridges. It occurs at a time when more buyers either can not or do not want to buy this valuable paper at higher prices. Simultaneously with each upward movement of prices is increasing the resistance of sellers and increased sales, which also has a downward pressure on prices. The trend upward stoporitsya and how depends on an invisible ceiling, to break that currently can not. If the bulls gather forces and bears weaken acumen, the price is likely to probet previous resistance level. Otherwise, prices will inevitably regress.
The line connects the important support minimums or bottom market. The emergence and existence of lines of support, directly opposite the lines of resistance. Here, the bulls switch places with the bears. Dealers are active players in the market, which pushed the price down, and buyers with ¾ the defending side. What would be more than passive sellers and buyers, the more likely it is that the line will support to break the price will go further down.
If the line of resistance and support line is strong and long enough withheld, depending on the combination creates various images and associations, which give the name of trend models and figures.
The lines of resistance and support better than through the best prices on the tops of emissions and nizah, and through the zone congestion pricing. Massive congestion pricing shows that it is the behavior of determining the number of traders changes direction, and the maximum emission prices in these places showed panic behavior of the weakest market participants, quickly closing its loss-making positions. The method of lines of resistance and support helps traders monitor changing trends ¾ her turn or acceleration. These levels are particularly important for the production of protective stop orders.
Support and resistance owe their existence past experiences of people etched in their memory. The memory of the past turn at this level encourages dealer make the purchase or sale. Their mass action and create a support and resistance. Bearing in mind that the price reached a certain level, have stopped falling and they went up, Throgmorton Street, probably will buy when prices are once again down to that level. Bearing in mind that the market, rising to a certain ridge, turned, Throgmorton Street will be inclined to sell and play for a fall, when prices are again close to the ridge.
Support and resistance exist because a lot of stockbroker sokrushayutsya about everything. Suffer Throgmorton Street, which kept losing position. They are just waiting to get out of the game, when the market will return to the level where they opened the position. Kruchinyatsya Throgmorton Street missed a chance to buy and they are waiting for a wind. These feelings are not very strong in a narrow range of gaming, where the fluctuations are small and the losers are not particularly uyazvleny. But breakthroughs abroad playing band cause acute pain and frustration.
When the market is kept at a level to become familiar dealer buying at the bottom of the range and sell at the top. When prices move up, sold for a fall bear muchimy pain; bulls same sadness, that does not have bought more. And both groups are waiting for opportunities to buy if you get a new ¾ chance, that is, when prices are close to previously known levels of support or resistance. By this decision, they pushed the emotions: some ¾ pain and other ¾ disappointing. Support consists of regrets about missed opportunities for bulls and bears the pain.
Resistance ¾ an area of pain bulls, bears and regrets the willingness of both groups to sell. When prices fall below the range of the game, it bought before the bulls see that lose money. They feel as trapped and waiting for recovery, just to get out of the game without a loss. Bears also grieve that poorly played down, and waiting time of recovery, to sell more. The pain of the bulls and bears unfortunate represent resistance ¾ ceiling above the market rates. The strength of support and resistance depends on the strength of massive emotions stockbroker.
The longer prices stay in the area of dense hatching, the stronger the emotional involvement of the bulls and bears in the area. When prices fall into it, it supports, and when raised to the ¾ resistance. Area dense shading can change their role, turning it into support, then in opposition.
The strength of each area of support or resistance is dependent on three factors: it is its length, height and volume of its transactions. Spatially, these parameters can be thought of as the length, height and width of the zone dense hatching.
The greater the length of support or resistance ¾ that is, the greater the length of time or the number of aged strikes, so it is stronger. The longer the duration of support and resistance, the more votes dealer "was filed in favor of the market situation, that is, the more the dealer meets this year. When two-week range is formed only minimal support or resistance when they dvuhmesyachnom range average power, because the players have time to adapt to the situation, but with two-year, cost-established as a standard, they are very high.
But the years of support and resistance levels are gradually fading. Defeated fly from the stock market game, and their successive newcomers have no emotional involvement in the old prices.
Support and resistance intensified whenever prices fall in these zones. Seeing that at some point prices are deployed, Throgmorton Street are beginning to rely on that turn, when prices again approaching that mark. This is a constancy of some exchanges and performed postulate of technical analysis, "history is repeating itself."
The greater height of the zone of support and resistance, so it is stronger. High resistance zone shows a strong reluctance and resistance to bear the recent increase in prices and weakening of the bulls. The height of the zone of support and resistance for each of the securities market is different: the height of this can vary from 1% to 7% or more of the level of prices. What a great height is a zone of support and resistance, the greater the pressure on the head of bears and bulls, respectively, it can stop.
The higher volume of transactions in the area of support and resistance, so it is stronger. The abundance of deals in the area of dense shading indicates activity stockbroker ¾ as a sign of their strong emotional involvement in this price level. The low level of transactions showed reluctant speculation dealer at a given price level ¾ it is a sign of weak support or resistance.
For the lines of resistance and support provided for the next game tactics.
1. When the trend in the direction which the dealer is close to the area of support or resistance, it is necessary to safeguard pridvinut suspension to the line of resistance or support. Defensive suspension ¾ this order to sell at a price below the market, if the dealer has played in raising, or purchase to close a short position at a price above the market, if the dealer is playing for a fall. This suspension will protect against losses if prices turned against the trend set by dealer. After reaching the area of support or resistance, the trend has shown its viability ¾ or weakness. If it forces to penetrate this zone, it is accelerating its progress, and your stiff suspension will not be affected. If the same tendency to bounce off support or resistance zone, then it has to show weakness. In this case, you will save you a stiff suspension of the profits.
2. The significance of support and resistance zones on the schedules of the more than longer time scale. For example, weekly schedules suschestvennee day. Competent dealer always leads to an analysis of several time scales based on a larger. If the trend holds weekly path through the free zone, hitting the daily developments in the area of least resistance is already significant. If the weekly charts are approaching the area of support or resistance, should reinforce the willingness to act.
3. Levels of support and resistance levels to help determine the order of protection against losses and protect profits. The lower boundary of the area of dense hatching ¾ this support. Buying and placing the suspension below this level, Throgmorton Street prepare a good foundation for the game to increase. A more cautious Throgmorton Street to buy after the price probyut level of resistance, and the suspension placed in the middle area of dense hatching. The true breakthrough ceiling should not end with the fall back in the game range. In a downtrend must act as well, but in the opposite direction.
Lines of trends. Graphs exchanges reflect actions bulls and bears. Bottom recessions show when bears vybilis of force, and the bulls have returned to power. Ridges ups show when vydohlis bulls, bears and entered into force. A straight line connecting two neighboring donyshka shows the direction of head bulls. Direct connecting two adjacent ridge, shows the direction of head bears. These are called the direct lines of trends. Stockbroker using them to identify areas of exchange.
When the price line growth trend of the growing hold over the bottom. When prices decline line trend hold over the ridges. Continuing this line in the future, you can identify the nearest point of purchase and sale.
The most important characteristic of the line trend ¾ angle of inclination: it points to the dominant stock group. If the trend line ustremlena up: it means that the tone set the bulls. In this case it is better to buy, placing a protective suspension below the trend. If the trend line points down, set the tone for the bear. So better to sell down protective suspension above the trend.
Line trends ¾ one of the oldest tools in the arsenal dealer, and is mostly a graphical tool for technical analysis. In the modern computer means to identify trends include moving averages, the difference grid system moving averages, which will be written below.
Many analysts hold the line through the trend ends ¾ maximums and minimums. It is better to hold them over the edge of areas of dense hatching, because they show the areas in which bought and sold a majority stockbroker. Technical analysis ¾ as would an opinion poll, and they are working to identify the mood of large segments and build a line across the boundary zone pushes to bias: there is a temptation to move the line to confirm their preconceived views. We need to monitor themselves and resist the temptation.
Panic plunge in prices ¾ sell it on the bottom desperate bulls, and panic buying in the area comb ¾ is close short positions bears ¾ causes lines zashkalivaniya that the graphs look like long "tail." It is therefore better to hold the line trends at the edges of zones of dense hatching, rather than the "tail" that little is reported on the exchange contingent ¾ except that of alarmist in its ranks.
The most important trend line ¾ sending its inclination. If the line goes up the hill ¾ means to wear bull market: you pick an opportunity to purchase. If the line goes downhill, the saddle bears, and we should pick the possibility of selling short. The significance of the line trend can be assessed by five factors: the scale of time, its length, the number of strokes of tangency, angle and volume of transactions.
The larger scale of time, the higher the significance of the line. The line on a weekly schedule reflects a more important trend than at the time, etc. What is the line length, so it is important. Short line shows the steps the crowd in a short period of time. Over a long line of action noted the crowd in a short period of time. The longer the line, the greater its inertia. The powerful bull market trend lines can stick a few years.
The more strokes relate to the line, so it is important. When prices are on the rise, they decline to trend line indicates a rally bulls. If prices returned to the line, then bounce off it ¾ means that the dominant stock exchange group usmirila rebels.
The line-sketch trend held only two or donyshka ridge. The emergence of a third point reinforces the importance of the line, while the fourth and fifth point to the strength of the dominant position of the Exchange Group.
Angle to the horizontal trend line reflecting the emotional mood of the dominant stock exchange group. Steep line ¾ sign of vigorous action. The relatively flat line ¾ sign nespeshnosti. A more gentle line typically stretches longer, as the tortoise in the race with the hare.
Is useful to measure the angle of each of the lines and record them on the schedule. Comparing angles, one can estimate the effect of exchange sentiments among the dominant groups. Most trend lines are under the same angle in the same market. Perhaps this is due to the behavior of the leading players, who settled in this market. Sometimes the price of escape from their trend. Then you can build a new, steeper line. It shows that the trend is gaining progress. Build a new, more steep line, it is necessary to suspend Condense: move it directly under the line of recent trends and draw with the advent of each new stroke. Breaking steep trend line is usually accompanied by a sharp turn in prices.
With the trend towards increased volume of transactions typically rises when prices rise, and less when they fall. This shows that the rises are attracted stockbroker than downs. When trend is observed: a volume increased by a recession and decreasing during the recovery. When prices return to trend line on a large extent, this is a sign of the growing number of rebels. If the volume increases, and prices are moving in the direction of trend lines, it is a sign of stability. If the volume is declining, while prices are removed from the line, this signal opsnosti for it. If the volume increases, and prices returned to the line trend, this signal a possible break through, which shows that the dominant stock exchange group loses commanding heights. But for the more confident tone, as many dealer, after the gap from the price should move a further 2-3%.
After the gap is very steep trend to higher prices often are increasing again, reaching the crest of the old and podbirayas to its already prolomlennoy bottom-line trends. This creates an almost ideal situation for sales on the decline: it is at the same time there is a double ridge, return to the old lines, and we can not rule out the difference of technical indicators that give a signal to play for a fall. In a downtrend should act like, but in the opposite direction.
For the lines of a trend following tactics game.
1. need to work towards the trend line: if it goes up, you should look for an opportunity to buy and to avoid the game down. If it goes down, you'll need to play the game and avoid demotion to increase.
2. Line trends ¾ either support or resistance. With the growth of prices should be given orders to buy near the line trend and protective suspension set below it. When trend is necessary to do the same, but in the opposite direction.
3. The steep trend line usually ends sharp prolomami. If the steepness of the line more than 45 degrees, you need to put the suspension on the trend line and its daily draw.
4. Prolomiv steep line, prices often return to the recent ridge on the shrunken size and variances to the technical indicators. This ¾ great opportunity to play for a fall. Reduced to its previous donyshka gap after the line trend creates conditions for the purchase with a relatively small risk.
No comments:
Post a Comment