In the actual stock market, a big reversal pattern often contains several small consolidation patterns, and several groups of reversal patterns can also be decomposed in the big consolidation pattern, mainly depending on whether analysts do long-term or short-term analysis. The following is the stock consolidation form compiled by Bian Xiao, which is for reference only and I hope it will help you.
What are the forms of stock consolidation?
Finishing form can also be called continuous form. The emergence of consolidation means that the stock price is in the middle of the rest process. Then after finishing, maintain the previous upward or downward trend. Generally speaking, the duration is a little shorter than inverted sentences. Because it is in the middle of the stock price after all, it won't last long.
1. triangle.
After a period of rising or falling, the stock price began to fluctuate within the range. The oscillation amplitude is getting smaller and smaller, the high point is getting lower and lower, and the low point is getting higher and higher. The deal is getting smaller and smaller.
(1) symmetrical triangle;
If the high point of the triangle is lower and higher, a symmetrical triangle will be formed. Symmetrical triangle is a classic finishing form. His appearance shows that the stock price is temporarily consolidating. If the stock price rises, it will continue to rise after finishing.
(2) Ascending triangle and descending triangle;
The upper edge of the rising triangle is flat, that is, several high points are horizontal. But the low point is getting higher and higher. The low point of the descending triangle is horizontal and the high point is getting lower and lower. These two kinds of triangles are also called right triangles because they both have a horizontal side.
The rising triangle is bullish and the falling triangle is bearish. The rising triangle is usually bullish, so it will appear in the middle of the rising period. When the falling triangle appears, the stock price is bearish. So it often appears in the middle of the decline.
Triangle is the main arrangement form, and the other is called flag shape. As the name implies, the national flag looks like a flag, with a flagpole and a flag face. After a sharp rise or fall, the rising angle is very steep. The stock price rose a lot in a short time, forming a flagpole. And then sort it out to form a flag. After a short period of consolidation, the stock price rose sharply again.
3. Wedge.
Wedge is actually a variant of triangle in terms of shape and duration. Divided into rising wedge and falling wedge.
(1) falling wedge;
In this form, the upper and lower edges are downward, and the high points and low points are getting lower and lower. This is called falling wedge. Generally speaking, a falling wedge is bullish. This is essentially different from the falling triangle because the triangle is bearish.
(2) rising wedge;
Rising wedge is a bearish form, and it is also the midway arrangement of stock prices. It also looks like a triangular structure, but the highs and lows are gradually rising. But the stock price finally fell. In terms of time, wedge-shaped generally lasts for more than one month, which is a relatively common situation. As for the measurement target, it is generally after the wedge-shaped breakthrough. The price will reach the highest or lowest point of the wedge.
4. Rectangular.
As the name implies, a rectangle is an obvious rectangle in the process of stock price consolidation. The upper high point is sideways, and the lower low point is sideways. There is resistance and support from top to bottom, and the stock price fluctuates repeatedly. After breaking through the range, the stock price rises or falls again. Like other forms, stock prices can rise to the height of a rectangle.
What does stock consolidation mean?
After a period of sharp rise or fall, the stock price began to fluctuate slightly and entered a stage of steady change. This phenomenon is called consolidation, which is the preparation stage for the next big change.
After the stock price rises or falls rapidly in the stock market, it meets the resistance line or support line. The original upward or downward trend slowed down obviously and began to jump up and down for a period of time, about 15%. The emergence of consolidation usually indicates a fierce confrontation between bulls and bears. Lead to the price jump, which is also the prelude to the next big change in the stock price.
What are the types of stock sign arrangement?
Flag-raising form: It usually occurs after a rapid and almost vertical price drop, and consists of two parallel and upward inclined trend lines, forming a rebound consolidation interval. When the stock price rises close to the upper trend line, it will be strongly resisted, and when the stock price falls close to the lower trend line, it will be strongly supported. However, due to the overall upward trend of this interval, it shows that the multi-party forces are slightly better for the time being.
Falling flag shape: generally occurs after the price rises rapidly in a short period of time, and consists of two parallel downward inclined trend lines to form a falling consolidation interval. In this range, the strength of both sides is equal, but the overall downward trend shows that the strength of the empty side is slightly better for the time being.
Pointed flag: It is shaped like a triangle. This part of the flag consists of two intersecting trend lines. The closer to the tail of the flag, the smaller the amplitude.