First, the box finishing
Box merger is a typical form of merger. The stock price or stock index fluctuates up and down between two horizontal straight lines, neither breaking the resistance line upward nor falling below the support line. This kind of shock will last for some time, and the short-term highs and lows in the shock market are connected by straight lines respectively.
The formation of the box is because the market is in a seesaw market with long and short balance, and the stock price will suffer heavy selling pressure up and get all kinds of support down. Leading to a deadlock in the stock price. The deadlock in the box is temporary, and its breakthrough will be the inevitable result. Before the breakthrough, the enthusiasm of the stock market will gradually decline, and the trading volume will shrink to a certain extent. When the market gradually turns weak, the breakthrough market will break out quickly.
The breakthrough direction of the box is mostly consistent with the trend before the box is formed. If the original trend is upward, then after a period of consolidation, the stock price will continue the original trend, and many parties will take the initiative to let the stock price break through the upper bound of the box. If the result is a downward trend, the stock price will break through the bottom of the box and continue the original downward trend.
Second, the national flag is sorted out.
Flag-shaped finishing, the stock price entered the stage of hovering finishing. Although the contest between the long and short sides is a tug-of-war, graphically, one side still has the upper hand, which makes the market gradually rise or fall. If the upper and lower ends of the stock price are connected in a straight line, there will be two kinds of graphics, one is flag-raising and the other is flag-lowering.
In other words, from the graphic point of view, the flag-raising form is getting lower and lower, and the short-selling force has the upper hand. Finally, the bulls made efforts to turn the tide, making the stock price break through the upper bound of the broader market and continue to launch another rising market. Graphically, the flag is falling higher and higher, and the bulls take the initiative. Finally, comprehensively suppress the short positions of stocks, so that the stock price breaks through the lower limit of the broader market and continues to expand another down cycle.
Morphological characteristics of 1. flag shape
(1) Flag raising shape
This pattern appears in the middle of the rising market. Its figure is like a small flag, and its trajectory is inclined from left to right, that is, the stock price enters the file, and each wave is getting lower and lower. It seems that it is about to reverse the decline, but it reverses the decline and breaks through the upper bound.
(2) Falling flag shape
This pattern appears in the middle of the falling market, but its graph is reversed, and the trajectory inclines from left to right, that is, the stock price enters stall, getting higher and higher, as if it were going to rise, but it soon fell, breaking through the downward boundary.
There are two kinds of this form: one is a small parallelogram, and the price changes closely but not much; The second is a small rectangle with a smaller price range.
2. Matters needing attention in flag arrangement
This form only appears in the finishing form, and investors are more likely to improvise.
At the end of the flag, the stock price suddenly rose sharply, and the trading volume increased accordingly, and it broke through the upper bound of the track and rose, only staying near the previous high price for a while. After sorting out the chips, another round of rising prices will be launched. The trading volume of flag-finishing also decreased in the falling market, but the trading volume also increased greatly when the stock price broke through the lower boundary of the track, which is not necessarily different from the trading volume when other finishing forms broke through.