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How to deal with diffusion triangle
Diffusion triangle is also one of the most common and practical forms in Shenzhen and Shanghai stock markets. Its main characteristics are: 1, which appears in the upward trend; 2. The connecting line of the high point and the connecting line of the low point intersect with the left side and spread to the right side, which is shaped like a horn; 3. The turnover is high and irregular. End of uptrend, sell signal. You can throw high and suck low, but fast forward and fast out. Once you find that you have fallen below the support line, you should stop and leave immediately. When the diffusion triangle appears, it should be noted that: 1, the diffusion triangle is a manifestation of the extreme madness of stock market speculation. When the market becomes irrational, it is undoubtedly the most dangerous time; 2. It is difficult to estimate the start time of the decline of the diffusion triangle, because the final madness often has huge energy, which may push the stock price to some incomprehensible high levels. Investors should be alert to the temptation of the main force. 3. A few diffusion triangles will mutate due to changes in the market situation, such as evolving into an upward triangle and finally breaking through. Therefore, investors should pay close attention to this variation and diffusion triangle and adjust their investment strategies at any time. It is worth noting that the volume change accompanying the formation of diffusion triangle is also obviously different from other triangles. Generally, the triangle gradually shrinks with the fluctuation range, and the transaction volume also shrinks gradually. The diffusion triangle is just the opposite. With the increase of fluctuation range, the trading volume also increases accordingly. There is a simple reason. Price breakthroughs, even false breakthroughs, can often attract investors' extensive attention, leading to a rapid increase in trading volume in a short period of time. In general, when the main support line of the diffusion triangle is effectively broken, it is declared that this form has been basically completed. Because most of the time the diffusion triangle belongs to the bearish form, this confirmation signal is also a sell signal. In general, when the main support line of the diffusion triangle is effectively broken, it is declared that this form has been basically completed. Because most of the time the diffusion triangle belongs to the bearish form, this confirmation signal is also a sell signal. Therefore, for the diffusion triangle, when it reaches a new height in the last few times in the formation process, it is necessary to choose the appropriate high position to gradually cash out. Moreover, it is worth noting that other technical analysis methods may also send corresponding selling signals at the same time.