tailieunhanh - J M Hurst The Profit Magic of Stock Transaction_3

Tham khảo tài liệu 'j m hurst the profit magic of stock transaction_3', tài chính - ngân hàng, đầu tư chứng khoán phục vụ nhu cầu học tập, nghiên cứu và làm việc hiệu quả | ì 52 Verify Your Chart Patterns WHY TREND LINES AND CHANNELS FORM AND REPEAT These are two of the very most basic tools of the chartist. The chartist will note two or more consecutive fluctuation lows and if each one occurs at a higher price level he will draw an uptrend line connecting or just below them. Similarly he will draw a downtrend line connecting or just above two or more consecutive fluctuation highs when each successive high is at a lower price level. He will then draw upon the adage that trends tend to persist and expect the uptrend or downtrend to continue until the trend line is broken. Furthermore our chartist will often note a situation where prices are generally trending in one dữection or another but appear to bounce back and forth between two imaginary parallel lines. He will draw these lines in on the chart and call them a channel. In Figure III-l we have extracted the simplest possible set of elements from our model. One of our cyclic components any one is shown at A. It is assumed that all longer duration components sum for the time being to the straight line at B. At each point in time the price values of A and B are added to get the resultant C. As a result of this highly simplified extraction from our model both an uptrend line and an uptrending channel are formed Trend lines and channels have often been described in awe-filled tones for it does sometimes seem like magic when stock prices consistently reverse themselves at channel or trend line boundaries almost as if these were very real constraints. At this point however we can see that there is no magic to it at all ft is simply the natural result of the existence of X cyclicality WHERE HEAD AND SHOULDER PATTERNS COME FROM Now we will add just a little more complexity to our simulated price action. In Figure IH-2 we see two of the cyclic elements of our model at A and C. The magnitude and duration relationships between these are approximately those that our model says should exist .