In the flag-raising style;
After the stock price soared, the stock price was also blocked from falling after the volume was enlarged, and began to rebound after a small correction, but the rebound did not hit a new high and then fell back, and the stock price moved down repeatedly. Connect the high point and low point of this slightly downward ending action respectively, and you can draw two parallel lines and a parallelogram inclined downward, which is the flag-raising action.
On the shape of lowering the flag;
Falling the flag is just the opposite. Short-term stock prices formed a small upward consolidation movement. Connecting the high point and the low point respectively, you can draw two parallel lines and an upward inclined parallelogram, which is the flag-dropping movement.
Key points of analysis:
(1) During the formation of the flag shape, the volume of transactions decreased obviously, but the micro-quantity-price coordination in the flag shape was relatively healthy.
(2) When the flag rises and falls, the turnover will increase sharply, which is different from other finishing forms.
(3) In the flag shape, if the transaction volume is irregular or does not decrease in turn, it should be noted that this is not a flag shape arrangement, but may be a reverse shape, that is, the flag is broken up and the floating flag is broken down.
(4) From the time point of view, if the flag arrangement is generally completed within three weeks, it is a signal that the band continues to rise, which means that the original rising band continues; If the stock price fluctuates more than 1 to 2 months, it is the beginning of a new round of large-scale rise, which is very common in bull markets.
(5) When the flag shape is continuous, it will generally not change the original trend direction. However, the flag-raising pattern shows that the original upward trend has entered the second half, and it is necessary to prevent the turn after the last rise; Lowering the flag shape means that the bear market has just begun, and there may be a big decline in the market outlook.
(6) The theoretical principle of spatial measurement is that after the flag is erected, the space where it rises again is the length of the flagpole in the previous flag shape. On the contrary, after the flag shape is established, the space where it falls again is the length of the flagpole in the previous period.
Note: The theoretical principle of spatial measurement is that after the flag is erected, the space where it rises again is the length of the flagpole in the previous flag shape. On the contrary, after the flag shape is established, the space where it falls again is the length of the flagpole in the previous period.
Specifically, you can refer to relevant books and systems and practice with a simulation disk, so that you can master skills quickly and effectively when putting theory into practice. If you are really not sure, don't use a bull stock treasure to pay attention to the cows in the cattle list. They are experts who have been selected through many experiments, and it is relatively more reliable to follow them. I hope I can help you, and I wish you a happy investment!