Stock Based Thirteen: Reverse Type - Rhombus Type

1. type analysis

The shape of diamond is like diamond, with its neckline V shaped.

Turnover is triangular, decreasing gradually.

The rhombus is actually a combination of trumpet and symmetrical triangle.

The left half is the same as the trumpet type, the second rising points are higher than the previous ones, and the fall point is also lower than the previous one. When the third rise, the high point can not rise to second high points, and then the drop and fall point is higher than the previous one. The fluctuation of the stock price has changed from continuous outward diffusion to inward narrowing, and the change of the right half is similar to that of the symmetrical triangle type.

2. market implications

As the share price rises and rises, investors appear impulsive and irrational. As a result, price fluctuations increase and pactions increase substantially. However, investment sentiment has cooled down rapidly, turnover has decreased, stock price volatility has narrowed, and the market has changed from high investment willingness to wait and see. Investors are waiting for further changes in the market to make new investment decisions.

3. tips

(1) rhombus seldom reverses at the bottom. Usually it occurs at the top of the intermediate fall or at the top of a large number of pactions. It is a steering pattern.

(2) when the lower right side of the diamond is supported, it is a signal to sell, but if the stock price breaks through the right resistance and the volume increases sharply, it is a buy signal.

(3) the method of measuring the minimum declines is to start from the stock price to the rhomboid right bottom line, and measure the vertical distance between the highest and lowest points in the pattern, which is the minimum range that the stock price will fall in the future.