1, the standard diffusion triangle contains at least three turning high points and two turning low points. These three high points are higher than one, and the two low points can be horizontal or the right low point is lower than the left low point; When the stock price falls from the third high point and its low point is lower than the previous low point, it can be considered that the form is established. After connecting the high point and the low point into a neckline, the area formed by the two lines looks like a horn. Because it belongs to the "five o'clock turn" form, the gentle trumpet can also be regarded as the top of the head and shoulders with the right shoulder high and the neckline inclined downward.

2. In the whole process of the formation of the diffusion triangle, the trading volume has remained high and fluctuated irregularly. Trumpet is caused by investors' impulse and irrational emotions, and rarely appears at the bottom of a falling market, because after the stock price has fallen for a period of time, the market has no popularity, and it is impossible to form this form in the case of a depressed market atmosphere. Irregular trading fluctuations reflect investors' excited and unstable buying and selling emotions, which is also a precursor before the plunge. Therefore, the trumpet shows a downward trend, suggesting that the upward trend will come to an end. When Shaanxi was liberated, the volume of trumpet making conformed to this law.

3. The degree of decline of the diffusion triangle is unmeasurable, that is to say, there is no measurement formula to estimate the future decline, but generally speaking, the decline will be extremely deep. At the same time, although the trumpet-shaped right shoulder rose quickly, it fell faster under the right shoulder when it was broken, but the shape did not clearly indicate the time when the market fell. Only when it falls below the lower limit can the pattern be determined, and investors should immediately stop profit or stop loss.

4. The diffusion triangle may also fail, that is, it will break through, especially at the top of the horn, which is connected by two high points of the same level. If the stock price breaks through under the condition of high turnover rate, it shows that the upward trend will continue. But for prudent and conservative investors, "I would rather miss than make mistakes", and I don't have to be too obsessed with this market where risks outweigh benefits. After all, the probability of building a horn head is high.

2. The internal structure of the triangle

A standard triangle adjustment form contains five sides and six points, each side is a three-wave structure, and in an ideal state, the operating range of each side is 6 1.8% of the previous side. Understanding the internal structure of the triangle will help us to follow the market rhythm in time in the process of gradually judging the actual trend.

Second, how to operate in different triangle adjustments

In the rising triangle and falling triangle, the obvious buying point or selling point is the last point in the process of triangle formation, and it is also the intervention point after effective breakthrough. In some cases, there will be retreat after the triangle is broken, and it is also an ideal time to intervene when the triangle is broken.

In addition, it should be noted that the rising triangle in the upward trend often indicates short-term strength, while the falling triangle in the downward trend often indicates short-term weakness.

In symmetrical triangle, the basic principle of buying and selling is consistent with the rising triangle and the falling triangle, which can be understood by referring to the pictures. Please pay attention to follow the trend when actually trading.

Symmetrical triangle, the rising triangle in the upward trend and the falling triangle in the downward trend, are all based on homeopathic breakthrough, and can be used as a more classic relay form.

Triangle breakthrough

Triangles often occur on the way to the megatrend, indicating that the original trend is temporarily in the rest stage, and then it should continue to move forward along the direction of the original trend. Because the triangle is only a rest of the original trend, compared with the original trend, the duration can not be too long. The longer it lasts, the less motivation it has to keep the original trend. Generally speaking, the sooner we break through the shackles of the upper and lower value lines and continue to follow the original trend, the better. The closer to the vertex of the triangle, the less obvious the characteristics of the triangle. The effective breakthrough position is generally three-quarters of the triangle length. Triangle breakthrough is an effective reference model. The longer the time period, the greater the strength of the triangle after the breakthrough. This time, it is to break through the 4-hour K-line chart. Don't watch too much, just within 100. The specific liquidation can be closed until the short-term deviation.

Third, the problems in practical application

1, pay attention to the significance of breakthrough time.

Generally speaking, choose a position between the transverse width of the triangle 1/2-3/4 to break through in the original direction. If it exceeds this area, the homeopathy of the triangle weakens, and the variables of the breakthrough direction increase, and the operation is mainly to wait for the breakthrough direction.

2. Short-term false breakthrough

In the actual trend, there are often false breakthroughs. How to identify false breakthroughs? Two common discrimination methods are recommended: one is the principle that the closing price crosses the breakthrough line; Second, stand on the breakthrough line after the breakthrough, and the breakthrough range reaches 3% of the longest side of the triangle.

Complete Form -2, Diamonds

Diamond finishing is often called diamond shape by market participants because of its appearance resembling "diamond". Morphologically, it is a combination of diffusion triangle, symmetrical triangle and head and shoulder. Its neckline is V-shaped. Like a diffusion triangle, a diamond is usually a bear market shape. Diamonds rarely reverse at the bottom, usually appear at the top before the intermediate decline, and often become a short base camp after completion, which is a turning point. The diamond sometimes becomes a continuous shape, appearing in the middle of the downward trend, and will continue to fall after the diamond.

Diamonds are a special and rare form. No matter where it appears in the market, its technical significance is only two words-bearish. Because once formed, it is often very lethal, so in the current mainland market dominated by unilateral markets, investors can't help but guard against it.

Why do diamond-shaped finishing mostly fall after it appears?

From the psychological point of view of investors, the diffusion triangle and the contraction triangle only reveal two different States. When the market forms a diffusion triangle, it often reflects that the participating investors are getting more and more excited, which makes the market volatility gradually intensify. When the market is in the stage of triangle narrowing, more and more investors turn to wait and see, because the market is temporarily waiting for the choice of direction. Therefore, when the diamond shape appears, it shows that the market is gradually shrinking from a more active period. It is also because the number of market participants at this stage is decreasing, which makes the market adjust downward most of the time after the diamond adjustment.

How to choose the sales opportunity of diamonds?

In general, when the main support line of the diffusion triangle is effectively broken, it is declared that this form has been basically completed. In addition, because diamonds are a diffusion triangle in the early stage of formation, and the diffusion triangle is bearish in most cases, investors can choose to sell them in the early stage of formation.

It is worth noting that other technical analysis methods may also send corresponding selling signals at the same time. For example, RSI, KDJ and other technical indicators will appear top deviation when forming a diffusion triangle; OBV did not rise at the same time when the stock price kept hitting new highs, which led to the inconsistency between quantity and energy, which was the main basis for selling.

How to calculate the decline after diamond finishing?

When the support level at the lower right of the diamond falls below, it is a selling signal. The calculation method of the minimum decline is to calculate the vertical distance between the highest point and the lowest point in the form from the moment when the stock price falls below the right lower line of the diamond, which is the minimum decline of the stock price in the future. Therefore, the wider the form, the greater the decline, and the narrower the form, the smaller the decline.

There is also a special situation. Diamonds sometimes appear at the junction of two channels in opposite directions. For example, after the exchange rate moves to a high level in the form of an upward channel, the parallel lines of this channel become the upper left and lower right of the diamond. Subsequently, the exchange rate turned down, or the way of descending channel, so that the upper right and lower left of the diamond became two parallel sides of the descending channel. Once this happens, the exchange rate usually falls by at least 50% of the previous increase.

Complete Form 3. Flag Type and Pointed Flag Type

Flag-shaped trend is like a flag hanging on the top of a flagpole, which usually appears in rapid and large market fluctuations. After a series of close short-term fluctuations, the stock price forms a rectangle with a slight emblem, which inclines in the opposite direction to the original trend. This is the flag trend. Flag-shaped trends can be divided into flag-raising and flag-lowering. If the upper and lower lines intersect, it is called a pointed flag. A pointed flag is very similar to a flag, but the difference is that the flag lasts for a long time.

Flag shape is a sort form, which is likely to appear in the fourth wave. Although the follow-up trend will continue, it may not be far from the end of the trend. At this time, we should pay attention to preventing risks. After breaking through the flag shape, the increase will generally not be less than the space of the previous wave of the flag shape.

These two small arrangement forms are recognized as one of the most reliable chart forms, whether in direction indication or prediction of measurement targets. They occasionally fail, but almost always give a warning before the form is completed. In order to prevent this kind of mistake, it is necessary to ensure the authenticity of the form through strict inspection. One of the prerequisites for a reliable flag shape is that the market must complete its shape within 4 weeks and make a breakthrough in the new movement. So the real flag shape can't appear on the moon map, and it rarely appears on the week map.

Complete Form -4. wedge

The so-called "wedge" is generally composed of two straight lines that are inclined in the same direction and converge with each other, respectively forming the upper and lower limits of exchange rate changes, and the intersection of the upper and lower limits is called the endpoint. Wedge shape belongs to short-term adjustment shape, which is usually divided into rising wedge and falling wedge. The wedge is different in that it is obviously inclined. The wedge is obviously inclined upward or downward. Usually, the wedge is inclined in the opposite direction of the current trend like a flag. Therefore, the falling wedge is bullish and the rising wedge is bearish.

Market meaning: the falling wedge (the opposite meaning of the rising wedge), after the exchange rate rose for a period of time, there was profit taking. Although the bottom line of the falling wedge is inclined downward, it seems that the market's capacity is not strong, but the new falling wave is smaller than that of the previous wave, and after falling below the previous low point, it has not fallen further, but has an upward trend, indicating that the power of selling and selling pressure is weakening, and the power of selling pressure only comes from profit taking on the way up, and there is no new initiative.

Rising wedge V Rising Triangle: On the surface, it may be thought that since the rising triangle with a horizontal line and a rising line is the rising image, rising wedge with two rising lines will be more bullish. But this is not the case. Remember, the flat top of the rising triangle means that the supply is leaving the warehouse at a certain price. When the supply is completely eaten (the rising low sideline indicates that the supply will be eaten up), the pressure is released and the price will jump forward. On the other hand, there is no obvious selling obstacle that will be swallowed up in rising wedge, but the investment interest is gradually failing. The price has gone up, but each new increase and fluctuation is weaker than the last one. Finally, the demand completely failed and the trend reversed. Therefore, in the sense of technical analysis, rising wedge represents a trend of gradual weakening.

Rising wedge V Ascending Channel and Flag: Both sides of the ascending channel and flag are almost parallel and stable. Wedge sets a range for rising, and its intersecting boundary line intersects near the rising dead point and the retracement connection point.

V-shaped descending wedge of ascending wedge: The descending wedge and ascending wedge are exactly the same except that the lower part is tapered. But after removing the wedge, the characteristics of the price trend are different. When it breaks through rising wedge, the price usually falls sharply, and when it is easy to leave falling wedge, the price is more likely to drift laterally or enter a slow "dish-shaped" movement before it starts to rise. Therefore, in the rising wedge, in order to ensure profitability, traders may be required to act quickly. In the falling wedge, you can enter the field in no hurry.

One last point. Rising wedge is a typical form of bear market rebound. In fact, it is so typical. Sometimes, after a large-scale decline, the frequent appearance of wedges makes people wonder whether a new bull market is forming, which can also be used as evidence that the main trend is still falling. When a major bear market fluctuation ends at the bottom of the head and shoulders, the last rising wedge usually shows that prices rebound from the left shoulder to the neck, just before they fall below the head (the last low point). Rising wedge in the weekly chart of linear coordinates is almost a bear market, which shows the atrophy of market vitality, which is the normal performance of any retracement movement contrary to the basic trend of the dominant market.

In the specific analysis, we need to pay close attention to many factors such as volume and time. Generally, the volume in a wedge shape decreases from left to right and contracts rapidly. Similarly, the wedge finishing time should not be too long, generally within 8 to 15 days. If the time is too long, the form power will disappear, which may also cause the exchange rate to reverse. As far as its specific operation is concerned, rising wedge often falls sharply after falling below the lower limit support, so when it falls below the lower limit, it sends out a sell signal. However, after the downward wedge breaks through the resistance, it may evolve into a horizontal development, forming a wandering state, and the transaction is still very low, and then slowly climb, and the transaction will also increase. When this happens, we can follow up after the exchange rate breaks the wandering situation.

Key points:

(1) The upper and lower lines of the wedge (whether rising wedge or falling wedge) must obviously converge to one point. If the shape is too loose, it is necessary to doubt the possibility of formation. Generally speaking, wedging takes more than two weeks to complete.

(2) Although most of the rising wedge in the falling market fell below the broader market, on the contrary, if it breaks upward and the trading volume increases significantly, the pattern may change and develop into an upward channel. At this time, it is necessary to change the original view, and the market may start a new upward trend along a new upward or downward channel. Similarly, if the falling wedge falls below the lower support instead of rising, the pattern may change into a downward channel, and then the outlook of the market outlook should be revised with the changes in the market situation.

(3) The upper and lower lines of rising wedge converge at one point, and the exchange rate can only be summed or limited when moving within the pattern, and will eventually fall below. The ideal breaking point of exchange rate is 2/3 of the distance from the first low point to the tip of rising wedge.

Sometimes, the exchange rate may move all the way to the tip of the wedge, rise slightly after the tip, and then drop sharply.

(4) There is an obvious difference between falling wedge and rising wedge. The rising wedge often falls sharply after falling below the lower limit support; However, after the downward wedge breaks through the resistance, it may develop horizontally, forming a wandering state or a garden shape, and the transaction is still very low, and then slowly begins to rise, and this exchange will also increase. In this case, we can wait until the exchange rate breaks the stagnation before considering following up.

(5) According to the statistics of actual combat experience, the ratio of upward breakthrough and downward breakthrough of falling wedge is about 7: 3; In time, if the falling wedge lasts for more than three or four weeks, the possibility of downward breakthrough will increase;

Complete Form -5. Rectangular form

A rectangle is a pattern in which the exchange rate changes between the upper and lower boundaries of two levels. The exchange rate rises and falls within its range. After the price rose to a certain level, it encountered resistance and turned around and fell back, but it was quickly supported and rose, but it was blocked again when it rose to the same high point last time and supported again when it fell to the last low point. When these short-term highs and lows are connected by straight lines, a channel can be drawn, which is neither upward nor downward, but develops in parallel. This is a rectangle.

Rectangle is a finishing form, and both rising and falling markets may appear. Long and narrow rectangles with small turnover often appear at the original bottom. After breaking the upper and lower limits, there are buying and selling signals, and the fluctuation amplitude is usually equal to the width of the rectangle itself.

A rectangle with high and low amplitude is more powerful than a long and narrow rectangle.

Rectangles are also called trading intervals or dense areas. Represents the consolidation time in the current trend, and continues the original after the breakthrough. The predicted value is similar to that of symmetrical triangle, but the trend lines are parallel and do not intersect.

When the price closes outside the uptrend line or downtrend line, the rectangle is completed, indicating the trend.

The rectangle may become an inverted shape. More commonly, it is a continuous form, not an inverted form, and inverted rectangles appear at the bottom much more than at the top. Long, weak and slow rectangles are not uncommon in the main chassis, and are sometimes classified as flat chassis.

Morphology and foundation

The shape of hour line and minute line is easily influenced by short-term important economic data. The shapes in daily, weekly and monthly lines are less affected by sudden changes. Changes in economic data are not easy to change the composition of long-term trends and patterns. After many economic data are reversed, the overall market expectation will change the long-term trend, which is a process from quantitative change to qualitative change. Therefore, it is necessary to distinguish the composition of short-term patterns and whether the breakthrough is caused by short-term important economic data or by technical adjustment.

wave form

Triangular shape is the most common shape, which exists in push wave and modulation structure. Common concrete forms and requirements for establishment are: 1) guiding triangle: only allowed to exist in one band and the first wave. The difference between this shape and other triangular shapes is that the sub-band with five-wave structure inside is often 5-3-5-3-5 structure. This is the only triangle that allows five-wave structure subbands.

2) Termination triangle: it is also a kind of oblique triangle. It is only allowed to exist in C waves and V waves, and the allowed structure is 3-3-3-3-3.

3) Ascending triangle: the upper side formed at the top of each sub-band is flat, and the lower side moves up gradually. It can exist in the adjustment zone of rising push wave and falling wave. The allowed structure is 3-3-3-3-3.

4) Descending triangle: the bottom of each sub-band is flat, and the high-end price at the top gradually moves down. It can exist in the adjustment zone of rising push wave and falling wave. The allowed structure is 3-3-3-3-3.

5) Shrinking triangle/symmetrical triangle: the top of each sub-band moves down gradually and the bottom moves up gradually. It can exist in the adjustment zone of rising push wave and falling wave. The allowed structure is 3-3-3-3-3.

6) expanding triangle; The top of each subband moves up gradually, and the bottom moves down gradually. It can exist in the adjustment zone of rising push wave and falling wave. The allowed structure is 3-3-3-3-3.

All kinds of triangles, except the leading triangle and the ending triangle, can't form the main driving belt of the five-wave structure, but can only form the adjustment belt, generally in the B wave, the 4 wave and the X wave, and adjust the C wave in the belt because it has the same five-wave structure as the push wave. Therefore, apart from the termination triangle, the C wave cannot be formed alone.

The formation of all triangular forms lies not in the external exchange rate form, but in the internal characteristics. The external and internal characteristics of Taoke require harmony and balance, with at least one pair of subbands, and the amplitude is close to a certain golden ratio (not very strict, only close), preferably 0. 6 18 ratio. 0。 764,0。 The ratio of 8 1 is also common, 1. A ratio of 0 is also allowed. At the end of the form, whether you can quickly return to the original starting point after breaking through the restrictions of one party is the basis for the final judgment. These norms often provide a good speculative basis for judging the market outlook.

All kinds of triangles, including termination triangles, may be destroyed before the shape is completed. This situation is not much, because the triangle shape of falling/rising takes a long time to run, and the market has a full understanding of it. For this reason, most of the rewinding volumes are thin, with the nature of sucking air/sucking more. Finally, back to the forbidden area of the form, at the top and bottom of the broken/broken form, the characteristics of the market outlook remain basically unchanged.

A standard triangle adjustment form contains five sides and six points, each side is a three-wave structure, and in an ideal state, the operating range of each side is 6 1.8% of the previous side.

edge in

The falling wedge, also called the inclined triangle, or the ending triangle, usually forms the wave C in the adjustment zone, or the fifth wave in the falling zone) and the rising wedge, such as the top/bottom of the head and shoulders and the top/bottom of the arc, which are typical flips.