Also known as trumpet, it is divided into upper divergence and lower divergence. The appearance of this pattern at the top indicates that the upward trend will fall at the end, but it is impossible to confirm the start time of the decline.
The technical characteristics of the deviation of the moving average (1) can show an upward trend or a downward trend. In the upward trend, it is long divergence, and in the downward trend, it is short divergence.
(2) The periodic moving averages gradually cross and bond with each other and diverge in the same direction.
The technical significance of moving average deviation (1) The moving average deviation is an important holding period.
The moving average of each cycle diverges upward at the same time, which means that the holders of each cycle in the market are optimistic about the market outlook and continue to buy, so the moving average of each cycle moves upward. Because the short-term moving average is more sensitive than the long-term moving average and rises faster, the moving average of each cycle is divergent.
(2) Short deviation of moving average is an important currency holding period.
The situation of short divergence of moving average is the same as that of long divergence of moving average, but the direction and technical significance are opposite.
Note on the divergence form of the moving average (1) This form is generally three highs and two lows, with higher and higher highs and lower lows.
(b) It is impossible to predict the minimum decline, but it will be very large;
(c) It is also possible to make an upward breakthrough, especially when the three top prices are at the same level, indicating that the trend will continue and the increase will be considerable;
(d) This pattern rarely appears at the bottom, because in a depressed market, such impulsive and irrational quotation is unlikely.
The introduction of stock convergence form, also known as triangle, belongs to arrangement form, which often appears on weekly charts and is divided into upper and lower convergence forms. Upper convergence (mostly at the bottom of the graph) is a signal that a big rise will happen; Downward convergence (mostly at the top of the graph) may lead to a sharp decline. The definition of upper convergence is: the upper neckline is smooth, the lower neckline is upturned, and the tip of the nose seems to look up; The definition of lower convergence is: the lower neckline is smooth, the upper neckline is below _, and the tip seems to be bowing.
Why is there a sharp rise and fall? This is the result of a contest between buyers and sellers in this area. The buyer's strength is slightly superior, and the seller keeps selling near the neckline, forming an upturned line below; Similarly, the seller is slightly better, and the buyer keeps selling near the neckline, so a downward line is formed above it.
If it is neither upward convergence nor downward convergence, then the market is either consolidating or not rising or falling. This form is also the easiest to lock, so be extra careful.
The direction of the moving average is a very important reference to judge the development direction of the stock market. The above article also analyzes the technical forms and precautions corresponding to the direction, so everyone should know more. In addition, the K-line shape and technical indicators can also prompt the stock trend.