Theory Of Form And Timing Of Buying And Selling

Although morphological analysis is a long-standing analytical tool, its market efficiency has always been new.

The Technical Analysis of Stock Trends, published in 1948 by the trend, was published by Robert Edwards and John Magee in the form of various forms and analysis methods.

In this article, through the analysis of morphological theory, the author tries to put forward some noteworthy places as a reference tool for analyzing trends.

The form analysis is based on K-line chart to analyze the trend of stock, and the K-line diagram is, of course, a chart containing time and price: the horizontal axis represents the time and the vertical represents the price.

Formation and types of price patterns

Before we talk about the price form, we must first understand the concept of the movement of the trend.

Never assume that most of the trends are suddenly changing. In fact, before a major change occurs, a trend usually takes time.

The problem is that this incubation period does not always mean that the trend will be reversed. Sometimes this is just a continuation of the existing trend, and then the original trend will continue.

The study of this incubation period and its predictive significance are the problems to be solved in the price form.

Then, what is the price form? The price form is

There are two main classifications of price: reverse form and continuous form.

The inverted form is true, which means that the trend is undergoing an important reversal; on the contrary, the continuous form shows.

The most commonly used main inversion forms are head shoulder shape, three heavy top (bottom), double top (bottom), V top (bottom), and circular (basin shaped) top (bottom) shape.

We will examine the changing process of price itself, its changes in charts, and the way to distinguish them.

Then, we need to study two other important factors, namely, the form of associated paction volume and the significance of measuring the price form.

Trading volume plays an important role in all price patterns.

When the situation is uncertain (in many cases), the study of the volume of pactions associated with price data is a decisive way to determine whether the current price pattern is reliable.

The vast majority of price patterns have their own specific measurement techniques to determine the minimum price target.

Although these goals are only a rough estimate of the next market movement, they still help investors determine their payoff - risk ratio.

Another major form of morphology is continuous form, including triangle, flag and triangular flag, wedge, and rectangle.

Such forms usually reflect that the trend of line is in a state of rest rather than reversal of trend, so it is usually classified as a secondary or secondary form, not a major form.