Monday, March 9, 2009

Model Big W

Double reason to provide visual control points, which indicate direction of turn the whole process. After determining their location, these signs identify most of the key pricing benchmarks and served early warning signals when they are violating. The most ordinary of them - a "Big W", begins in the latter mainly maximum marked top-down trend just before the first ground. The first heavy lifting immediately after the minimum forms center W, as it restores 38% - 62% of the last downward movement.

This rally on giving, and the price falls back to test the latest minimum foundation. At this point the trader closely following the arrival of the first signal. Turning bar with a wide range (dozhi or hammer) may appear close to the minimum price the latter reason. Or volume spikes shapes, but the price does not fall. Even better, "turn turtle" develops when price violates the last at least several tikami and then makes a sharp movement back above support. If any of these events occur, we note the potential for a second side of the Big W.

Aggressive entry into the market can be done about the second hand, if the signals are quite strong. The top of a short movement, celebrating the partial restoration of the last downward momentum (middle W) now becomes our main price guide for further analysis and input in the trade. Price to successfully return to this point, to recover 100% of last fall (from the second peak). She finally breaks a lower maximum Bear cycle. In the strongest terms the double, the price quickly rises in the price immediately after the second base. Less aggressive long positions may be introduced when the new momentum with confidence is restored through a 62% drop from the second minimum. However, if short-term solution is desirable, there must be sufficient profit potential between the entrance and at the cost of a central point for the deal, that it had
meaning. Long-term traders can hold positions as long as the price is the center. At this point, it will often pause to test support. But then expected another upward momentum. Price, back to the middle "Big W" has a very high probability of passing through this point. Under normal conditions, it can easily recover 100% of the initial downward movement, ending with a model of dual bases, and the "Big W".

This tendency allows for further input for testing the expected return to a central point, after the second wave. Schedule "TIG Holdings" demonstrates an excellent example of this second possibility.

Turtles and trends
In 1996, the graph "TIG Holdings" has developed a double base, unusual for the shares in the insurance sector. As the price rose from a small but powerful "turn turtle," she finished confidently a variety of classic dual grounds - contour letter W.

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